Food For Thought...

[chefdennis]

I have said when I started in Expediting that I knew just enought about this business to get myself into trouble. Well there are alot of topics i know just enough to get myself in trouble, especially when i think i know whats going on and finances are one of them...I took all of my investments out of stocks and the US dollar a few yrs ago and haven't regreted it yet. Now when I read that the dollar i about to be dropped as the world currency or the "peg" that the world uses to value the other currencies, sometimes I figure it is just a matter of time and other times i figure its been being said for so long that who knows whats going to happen.

Then we have the Fed printing money and buying our own debt and most everyone that wants the country to prosper understand that you can't spend or buy your way out of debt, but barrys admin still keeps doing it...

Well this article is good reading and explains alot in laymen terms so theat most will be able to understand how and why we are in the opposition we are in. It is long, so i just posted a few "items" from the whole article. As I said, its "Food for Thought" and well worth reading.

From the article , you can read the complete article at the link below:

U.S. Dollar Now Ripe For Catastrophic Devaluation

By Giordano Bruno

Neithercorp Press – 08/09/2010

Neithercorp Press

Many people have at one time or another been caught up in their own debt race, trying to dodge bills and pay off one credit card with another credit card. They understand well that this terrible circle ends in ruin. This is the situation we are in as a nation.

Strangely though, some mainstream economists and analysts still contend that America will never face consequences for its fiscal debauchery. Why do they believe this despite all the evidence to the contrary? Because of a magical machine called a “printing press”.

“If foreign investment in our debt ceases”, they say, “The Federal Reserve can just PRINT the money our government needs to function out of thin air.” That is to say, these economists (which include men like Ben Bernanke) either truly believe that capital can be created out of nothing with no sacrifice attached, or, they KNOW there is a serious sacrifice attached, but intend to keep this fact from the American public. Regardless, the end result is the same; massive liquidity injections which continually monetize debt as it defaults, and Federal Reserve purchases of our own T-bonds. We are buying stock in our own dollar just to prop up its value and keep our country afloat!

Unfortunately, the strength of our currency is waning, and nearing outright collapse. It is something we have been talking about for the past two years at least, which has drawn some into a false sense of security. The signs have been muddled in the MSM fog, but now the picture is becoming clear. Will the dollar crash tomorrow? That’s hard to say. What I do know, is that all the elements necessary for a catastrophic dollar devaluation have moved into place, especially in the past month. That is to say, there is now nothing preventing a steady and precipitous fall in the Greenback over the next six months or more.

Whether or not China’s goal is to help global banks deliberately destroy the dollar, they have the perfect alibi: The U.S. government demanded that China let the Yuan rise in value, China’s new consumer based economy needs a stronger Yuan if they are to survive, and the U.S. dollar is no longer a safe investment anyway. I’ll say it again; China is now ready to dump the dollar at anytime.

These bailouts drag directly on our national debt, and are costing the American taxpayer billions. Why do Freddie and Fannie still need money? Because the housing market is still falling apart! The Treasury and Barack Obama recently admitted that they had “underestimated” the number of homeowners who were still behind on their mortgage payments by two months or more even after receiving government help through the HAMP program

What does housing have to do with the Dollar? First, the Treasury’s commitment to Fannie and Freddie has placed the U.S. taxpayer at the edge of an endless debt vacuum. As long as real estate continues to crumble, as long as people continue to lose their jobs and default on their mortgages, we will have to continue bailing out Fannie and Freddie. This creates the potential for trillions of dollars of debt that will be monetized by the Federal Reserve, putting even more strain on the dollar. Second, the further into debt our country goes, the more tempted other countries will be to back out of U.S. Treasury investment. Currently, the vast majority of Treasury purchases by foreign buyers are short term, maturing in a matter of weeks. The U.S. cannot sustain itself on short term investment. I believe that our nation’s debt issues including the endless fallout from the mortgage crisis will cause a detrimental loss of faith in the dollar and I believe this will occur soon.