TheRabble

U.S. Records Another Huge Current Account Deficit

China needs us to consume its products? Why? Their economy is productive enough to both provide goods for its own people and trade surpluses with others. The US industry has deteriorated and we are in crippling debt.

What incentive to people have to save with constant bubbles and inflation distorting the economy and encouraging speculation?

Until the debt bubble collapses completely, and inflation is eliminated people wont save. Unfortunately there is no way of stemming inflation at this point, but once the dollar collapses we can start again under a more sound premise. Perhaps gold will become the reserve currency again, a revolutionary idea in today's imbalanced counterfeiting world.

Gold Is Set to Regain Its Shine

As assets deflate money becomes more valuable. Something that can be created via a few keystrokes is not money, it is counterfeit pure and simple.

Gold is money, always has been, and will be so long as human nature remains intact. Every government which has tried to issue money via fiat has failed miserably. Even the most powerful authoritarian regimes have collapsed because of loss of faith in the currency. You can not pay a population with monopoly money and expect the confidence to last forever. The deception collapses due to the greed and ineptitude of those operating the printing presses.

Source of Trade Deficit Reductions: Exports, Imports or Prices?

A highly academic way of saying the dollar is overvalued.

The Great Dollar Pump of 2008: A Doomed Central Bank Intervention

droskoph, how did the tightening of credit take dollars out of circulation? If someone defaults, that just mean the banks don't get money back (which only really accounts for 10% of the reserves they had to begin with). On the other hand, the builder of the home, or car, or whatever, got to keep every penny of the loan... a loan that was basically created out of nothing.

Just because they are now tightening credit does not remove the inflationary pressures... Not to mention the FNM and FRE who held so much of these mortgages on leverage need to get bailed out by the government, creating even more inflation... Also other banks who invested in the mortgage market may soon need bailouts as well.

And what is truly the worth of all these dollars? What goods do we have that we can trade with the rest of the world in exchange for them taking these dollars? Our economy is clearly in terrible shape.

The dollar is done... it's just a matter of time.

Rescuing Frannie

The government prefers hyperinflation over pissing off Chinese bond holders.... the irony.

"When you're born, you get a ticket to the freak show. When you're born in America, you get a front row seat" -George Carlin

Rescuing Frannie

The government prefers hyperinflation rather than pissing off the Chinese bond holders... the irony.

In the words of the late, great George Carlin: "When you're born, you get a ticket to the freak show... When you're born in America, you get a front row seat."

Precious Metals Manipulation: Lawyers Prepare for Battle

By the way, I think the government or some shadow elite had something to do with 9/11 too. It will come out eventually, but in the meantime lets just pretend everything is A-OK. The people responsible, in 10 years, will be living in some rat hole in South America next to Bush and the gang, growing beards like Saddam and drinking feces-infested water.

Precious Metals Manipulation: Lawyers Prepare for Battle

I continue to convert my unemployment checks into gold, while attending college on the GI Bill and living with my parents... If the US government is trying to destroy capitalism, then I don't want to be a capitalist... yet. Ofcourse they are going to inevitably fail, comparisons to Rome are unwarranted. Rome had no rival, while the US has Europe and Asia to contend with, and who's loyalties are matters of convenience.

In the end, the current US order is just like the old Soviet Union, appearing strong, but underneath there is very little to back it up. Political discontent, corruption, social strife, economic manipulation, and irresponsible foreign and domestic policy is poised to break an already weakened establishment. I hope we have the wisdom to return to true capitalism and freedom, as we will soon have the technological capability to enter an age of unimaginable prosperity for all.