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Marmite, I think it's the biggest carnival sideshow shell game of all time. Here's what a half-crazy friend of mine just wrote me: "well the real inflation rate is important. More importantly, remember we are talking about paper currency backed by Uncle Sam's promises..in other words, backed by promises that are not credible or even possible at all....
The federal debt is 7-8 trillion dollars, mostly owned by foreigners. When they unload and start buying dollar assets, then obviously there will be exploding prices in the usa. The dollar will depreciate...it is a ticking time bomb, not just for Americans but for the world....
The only things that save/delay the house of cards from falling are:
1. the US dollar is a reserve currecny which delays the risk of an outright runaway inflation which is becoming greater.
2. the USA does a good con job on the rest of the world to accept a mickey mouse currency for real goods and services that have real value.
However, countries like China and Arab countries will not be fooled forever. Already, the Arabs and foreign banks are reducing reserves of dollars."
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