Today the U.S. dollar is in a frightening position. As observers of history, we've taken notice of the 1970's dollar crisis, and similar political and fiscal events that have developed again in the last five years. • Rising commodity prices.
• Record imported oil/gas prices.
• An unpopular, expensive war.
• A weak, ineffective president.
• Massive deficits.
• Conflict with Iran.
In the 1980’s, with the total destruction of the U.S. Savings and Loan industry, it took $135 billion dollars of U.S. taxpayer money to buy up all the foreclosed mortgages and real estate problems.
In one short week in August 2007, the same system needed $400 billion dollars, created in one week, just to keep the system afloat a little while longer.
The continuous printing of new dollars to cover our exponentially increasing pile of I.O.U's is one indicator of an alarming truth—the strength of the U.S. dollar is based solely on people's faith in it. The problem is that the United States' reputation in the world has become completely tarnished by the reckless foreign policy decisions of recent years. As a result, more and more countries are trading out of U.S. dollars as the fear spreads about its declining value.
At some point, we may see a repeat of Germany in 1923, when people started their woodstoves with German paper marks because they had become worthless. In 1923 Germany, the fiercest inflation in history was exploding. Millions of Germans found they were unable to buy a postage stamp with their lifesavings. The German mark had added so many zeros that "Hundert Millionen Mark" (Hundred Million Mark) bills became worthless.
[Excerpt of an article by Michael Byrd, Austin Report]
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