Skip to comments.Revealed: How immigrants in America are sending $120 BILLION to their struggling families back home
Posted on 01/31/2013 11:38:18 AM PST by Obama_Is_Sabotaging_America
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The way 0bama’s America is going, it be long before ‘wealthier’ people in foreign countries will be sending money to their families in the U.S.
Agreed the USD is the currency of choice for black markets across the world, but it too is subject to inflation. If the dollar loses value, purchase and exchange power is lost. Many smart investor watch the black market to judge true currency strength. So in the end, the idea that USD oversees mitigates inflation does not hold. I would direct you to this informative piece on inflation. The comments by Freepers are very good Link
I just scanned some Federal Reserve documents (like this one, albeit it is eight years old, or this one). They show that foreigners actually hold more cash than in the USA, 55% of the total money stock. Nor are they talking about that money only being used here. BTW, I doubt seriously their analysis of the total cash floating around in the drug trade. They said it is only a $20-30 billion cash stock (95$) based upon the average domestic currency turnover rate of 30-50 times per year! I'd suspect the drug trade to be a third of that turnover rate given the nature of the supply chain. Given that the total amount of currency has tripled since 1995 my guess is that there is a half trillion floating around abroad. That ain't chump change when it comes to the total amount of cash they print.
Another big mitigating force against inflation right now is investment in precious metals, an investment that produces nothing and reduces monetary velocity considerably.
I said it before: Charge the Mexican govenrment $2000 per month per illegal immigrant and watch the federales protect our border for us. The Libs have got to love this idea. It's a new source of revenue for them.
So that’s what’s keeping the dollar afloat. Chandra Singh sends 100 bucks back to India, and that’s $100 less money circulating in the US economy, so the dollar maintains that much of its value, despite the federal government printing them like Argentine Junta pesos or German Weimar reichsmarks. So the more immigrants, legal or otherwise, the sounder the dollar. Support your country. Hire a Mexican today. He’ll send money back home./sarc
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