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To: Founding Father

Did you see this post from yesterday?

http://www.freerepublic.com/focus/f-news/2960616/posts

If we compare KNOWN U.S. Federal and State financial obligations to current assets and projected revenues, the dollar is already overvalued by a factor of 6 or 7. At some point the house of cards will topple and our dollar will suddenly be worth 14% to 16% of its current (already weak) value. We are fast approaching the time when we’ll have to take care of each other in small communities rather than depending upon Federal and state authorities. The prudent will prepare, not only materially, but spiritually.


5 posted on 11/18/2012 6:36:09 AM PST by Renfield (Turning apples into venison since 1999!)
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To: Renfield

The problem with this sort of calculation is that on the other side you can say that the fracking revolution in the oil patch has created a 100+ year supply of oil and gas for the USA. This means that roughly the US dollar is now backstopped/collateralized by an extra 100 trillion or so.

There are no oil independent countries with weak currencies. None.

The US dollar is going to make a secular bottom in here in a year or two and then head back up.


10 posted on 11/18/2012 8:27:22 AM PST by ckilmer
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