"Your Money's No Good Here!"

[Bottomfeeder 244]

"Your Money's No Good Here!"

True story. This was recently published in London's Financial Times:

An American businessman just came back from Vietnam. On the streets, a seven-year-old beggar had asked him for money. He offered a dollar. The beggar boy refused... saying he wanted euros instead.

If you thought a crashing U.S. economy is bad, wait for the nightmare of a final collapse in the dollar. It doesn't matter if you don't travel overseas. When the value of dollars really falls, the price of everything goes up. And the purchasing power of your savings, assuming you're among those who still have some, falls apart.

"Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation."

What's "positive inflation"?

Our Fed keeps on pretending that weak dollars will make America's exploding trade deficit start shrinking. But so far, it's just not working. At last count, our trade deficit was $666 billion - the worst it's been in U.S. history.

The trade deficit costs us more than we spend on defense. More than we spend on Social Security. More than we spend on Medicare. Meanwhile, our personal debts have gotten bigger. While savings are shrinking.

AURaptor

Dr. Richebächer's old friend Paul Volcker, you'll remember, was also the former chairman of the Federal Reserve under Ronald Reagan. He calls this dollar demise "a recipe for American economic disaster."

http://www.isecureonline.com/reports/RCH/E...851937&l=787566

Hmmm.

[War Eagle 96 10]

Liberalism's central tenet is still a failing America. Nothing's changed here, move along.