Posted on 05/19/2014 10:30:45 AM PDT by GilGil
So, with another “plunge” in the economy coming, how’s the dollar going to hold up? Williams explains, “You are not seeing an annual deficit of $400 or $500 billion dollars. You are really seeing something close to $6 trillion. That is beyond control, and it raises the question of long term solvency of the U.S. It is a big concern for the global markets. It’s really the reason why nobody outside the United States wants to hold the dollar. Now, look at the U.S. economy, it is turning down. Economic strength is a big factor in the value of a currency.
(Excerpt) Read more at usawatchdog.com ...
[ What happens when second quarter GDP goes negative? More lies from the government. The inflation you see at the store is not really inflation. Maybe when the markets are down 60% then people might wake up! ]
The Fed still has plenty of Tricks left in their bag, but I would imagine that bag is starting to run low and there is hole in the bottom of the bag taking away options as it spirals out of control.
One trick used now may eliminate the possiblity of using two other tricks on down the road...
I think the Feds bag of tricks is going to start drying up really soon...
Did you just fall off the turnip truck? The Obama administration will just lie about the economic data, and the corrupt MSM will happily report it and probably embellish the lie. And everyone will live happily ever after.
All going according to plan — “fundamental transformation of America”
Marx > Lenin > Stalin > Mao > Kim > Ho > Pol Pot > Obama
That's a flippant comment but not true. Lots of countries and lots of people all over the world want to hold dollars, and of course it is still the world's reserve currency. It is at some risk, but not many can put their faith in China right now unless you are living in China, nor the EU until they get well clear of their many problems - including the fact that its untested and that one country basically acts as the central bank for all others.
One bag of tricks could be all the $$$’s in 401k’s, IRA’s to help bailout uncle suggah.
Take out the hedonic indexing and it has been negative for quite awhile. Probably a good part of the last decade as well.
The petrodollar is doomed. Russia is about to sign an agreement to send natural gas to China and to be paid in either Rubles or Yuan. Once Russia and China have accumulated enough gold to back the Ruble and Yuan the fiat dollar scam will collapse.
When the $2/lb. hamburger of two years ago is now $4/lb. , the dollar has been devalued 50% for everyone who eats. I’d quote the steak price, but we haven’t seen steak since last summer at our house.
Globalism is the problem, except for the global elites.
In addition to the well-known Consumer Price Index, there are numerous price indices, that track specific sectors (e.g. construction). Inflation or deflation rates are not uniform — some things (electronics in particular) are have double-digit rates of deflation, others (e.g. food) have price inflation. Inflation affects older people more than younger people. Younger people buy a lot of (e.g) electronics, and other durable items that have price deflation. Older people spend more of their income on items where there is serious inflation (e.g. medical services). While a recent college grad enjoys price deflation, seniors are being squeezed by inflation on essentials.
The euro will never be reserve currency because the EU follows an essentially mercantilist trade policy: in order for it to be reserve currency, they would have to run trade deficits large enough to give reserves to foreign countries, which they will not do.
Few in the 1930’s could even imagine a situation, where the British Pound Sterling would lose its status as the world’s reserve currency.
You inadvertently posted an accurate and funny mathematical expression!
The incredible shrinking tyrants!
What's "steak?" Something in the memory banks from long ago is triggered, but can't quite make an association.
What happens? Easy, the Fed will simply print more money like it has been doing since Obama got in office.
I have the same observation. The world is in a pre world war II funk living in Europe until the Nazis are marching down the street and it is too late.
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