ManAboutDallas

Watching the USD Drop? Here's What You Should Really Be Watching

You can't fight real wars with fake dollars for very long, unless you have:
a) an indigenous manufacturing-based economy whose manufacturers you can persuade or force - take your pick - to accept your fake dollars; and
b) a citizenry whom you can persuade or force - take your pick - to trade their real dollars for your fake dollars [ read: War Bonds ]

This is how the U.S. managed to fight and win WW2. Those days are over. The U.S.'s industrial base is gone, and its citizens, except for the 2% at the top of the pyramid, are all bankrupt, along with the U.S. itself.

The Romans learned it the hard way, the British learned it the hard way, and now the United States is learning it the hard way...... you can't afford an "Empire" for very long when no one wants to pay for it, any more.


On Nov 10 10:08 AM Shishir Nigam wrote:

> Egg,
>
> Appreciate your comment.
>
> Agreed, Dennis Gartmen often provides that reasoning as to why the
> US dollar being the reserve currency is not going to change anytime
> soon. I acknowledge that fact about military power but I think that's
> a much more LONG term factor - and by long I mean something 20-30
> year down the road. That's when the balance of military power will
> start affecting things. But I don't see any country overtaking the
> US military prowess for the next 20-30years.
>
> In this article, I was looking focus more around the 3-5year horizon
> and hence focused on the factors that I did.
>
> Thanks for bringing up an important point!
>
> For more analysis, check out my blog: youngandinvested.com
>
>
> On Nov 10 02:35 AM Egg wrote: