While we have been distracted by the election, the Federal Reserve voted to create $600 billion out of thin air in order to buy up U.S. Treasury Securities in order to keep interest rates from rising – by flooding the world with more “cheap” dollars.
As of when I’m typing this, it takes $1.41 to buy one Euro (it was around $1.38 last week). The US and Canadian dollars are approaching parity (it takes $1.00.7 CDN to buy a US Dollar). This is about the same level when all hell broke loose in September 2008.
Another thing going on in the world is Iraq is on the verge of an active civil war – a bomb blew up in a Catholic church, and bombs have been going off all around the country.
What say you Mr Boehner? More spending on Iraq? Please don’t cry – it’s not manly.
Isn’t today the dead line the U.S mint is going to print more money ? The Government won’t have any problem spending more money , The’re rich. And that should put the value of the USD somewhere in the neighborhood of 40 cents actual cash value.
Look for currency value decline in the 15%-20% range over the next decade as a result. So, when our cheapened aerated dollars buy things from overseas, say, petroleum, expect a corresponding hike at gasoline pumps … and the added costs to truckers, etc. to be passed on at stores and so on down the chain …. The Weimar Republic tried buying its own debts, too, didn’t it?
Oh, that’s right. The Bama expects all of us to driving our electric toothbrushes soon. Right. Got it.
I’m just sayin’ … again.
AH – forgot to add: The people harmed the most by this are those on fixed incomes. It represents a cruel silent tax. Their income figures stay the same while their buying power is undermined by naif libtards off on spending sprees to pay off their friends and to buy votes with “free stuff.” This is so offensive, they ought to be jailed.
The only ways out of this 3 TRILLION dollar debt trap that the Bush (TARP) and Obama (Stimulus) administrations have given us are:
(1) repudiate the debt and stick China with worthless paper, or
(2) devalue the dollar, impoverish American main streets (Wiemar Republic style), leading ultimately to WW-III being kicked off by the U.S. in a desperate play to maintain power, or
(3) Draconian cuts in Federal spending, gradual sell-off of most Federal lands and buildings, and implementation of the Fair Tax to stimulate economic activity and attract foreign investment.
Any bets on which path Washington will choose? I’m betting #2. And why would any state with a coastline stay in the union when the Federal government behaves this way?