Not buying this.
The federal deficit dropped by 350 billion this year to 650 billion from over 1 trillion.
As well the trade deficit is shrinking because the USA is fracking its way to oil independence at the rate of 1 million barrels a day annually for the last three years. Estimates are that this increase will continue for at least the next 5 years.
The dollar has been trending up for the last three years. If the fed stopped printing money — the dollar would vault to the moon.
Nobody but nobody is going to be dumping dollars as a reserve currency. Not when capital flows are turning back in favor of the USA.
Countries have begun trading with each other with their own currencies already.
And although fracking our way to oil independence is a good thing, that trade deficit will also mean less petrodollars out to be traded or invested in U.S. treasuries.
‘Nobody but nobody is going to be dumping dollars as a reserve currency. Not when capital flows are turning back in favor of the USA.’
If people don’t agree with this, then buy my silver for $40.00 an ounce.
“Nobody but nobody is going to be dumping dollars as a reserve currency”
Russia and China have agreed to do so.
“The federal deficit dropped by 350 billion this year to 650 billion from over 1 trillion.”
No, it hasn’t. It has only been postponed due to no budget, but the spending has still happened, it just isn’t on the books. That, and do you really believe $650 billion is healthy? “Gosh, we beat you less this time, comrade, why so glum?”
As we become more energy independent, watch the OPEC countries turn from the dollar to an SDR or gold.
Then the games will begin.
“The federal deficit dropped by 350 billion this year to 650 billion from over 1 trillion.”
Only because we hit the debt ceiling and Obama is doing his best to propagandize raising it. Let’s us know in January what the final deficit became.