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U.S. Dollar Short-term Strength, Long-term Collapse
The Market Oracle ^
| March 4, 2009
| By John Browne
Posted on 03/06/2009 8:58:12 AM PST by Strategy
When President Obama took over the reins of government just six weeks ago, he stood at a historic crossroads. His decision on which route to take will make a profound impact on the future of the American economy and its currency.
He could have persuaded a frightened Congress to initiate a structural change that would transform the U.S. economy from its dependence on debt-fueled personal consumption back to a path of productive growth. Instead, he took the easy route: attempting to delay the pain with stimulus and inflation, rewarding his benefactors without truly addressing our structural deficits. Disappointing for a man who campaigned on 'hope' and 'change.'
(Excerpt) Read more at marketoracle.co.uk ...
TOPICS: Business/Economy; Government; Politics/Elections
KEYWORDS: congress; democrats; dollar; economy; obama; socialism
1
posted on
03/06/2009 8:58:12 AM PST
by
Strategy
To: Strategy
It is more than disappointing ... it is criminal and betrayal. MO
2
posted on
03/06/2009 9:09:28 AM PST
by
geologist
(The only answer to the troubles of this life is Jesus. A decision we all must make.)
To: Strategy
The Brits see zero for what he really is.
3
posted on
03/06/2009 9:18:35 AM PST
by
datura
("Against all enemies, both foreign and domestic")
To: Strategy
Its very simple supply and demand. As you create more dollars people demand less of them. For every dollar the government borrows the Federal Reserve has to print a dollar to buy the bond. The supply of dollars is going through the roof, so the value of the dollar must fall.
4
posted on
03/06/2009 9:27:20 AM PST
by
FightThePower!
(Fight the powers that be!)
To: FightThePower!
Before too long the only thing the dollar will be good for is toilet paper.
5
posted on
03/06/2009 9:45:28 AM PST
by
Ev Reeman
To: FightThePower!
....so the value of the dollar must fallCompared to what? The fact is that the other currencies are in even worse shape, except perhaps the yuan. Compared to gold, it has already fallen quite a bit.
6
posted on
03/06/2009 10:36:44 AM PST
by
expatpat
To: expatpat
I would say it will fall relative to the Yuan in in the long run. In the short run, I expect it to fall relative to gold, grains, even oil.
7
posted on
03/06/2009 11:33:18 AM PST
by
FightThePower!
(Fight the powers that be!)
To: Strategy
This is the expected outcome of delinking the dollar from gold and silver. All real money needs to be backed by a real commodity, whatever that is, to maintain a stable value!
8
posted on
03/06/2009 11:59:33 AM PST
by
2001convSVT
("Only Property Owners that pay taxes should have the right to Vote")
To: FightThePower!
For every dollar the government borrows the Federal Reserve has to print a dollar to buy the bond. The Fed buys every bond the Treasury issues? OMG! You're stupid!
9
posted on
03/13/2009 9:56:04 AM PDT
by
Toddsterpatriot
(Havoc has been back since September. Or was it April?)
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