iyamwutiam

Key Reasons to Be a Dollar Bull

The fact that the US does not have a dictatorship and Congress will not endorse ridiculous sums of money is patently false from the facts. The only thing that is saving the US dollar is that it is a reserve currency. Case in point -Russia- having to pay only 110 billion in debts due is being rapidly devalued via the ruble. If they were a reserve currency such a paltry sum is meaningless.

The US -is hiding the true extent of its liabilities which total near 50 trillion (public and private) -which is close to 500 times GDP. It has been widely acknowledged that these financial services added to the GDP and now that the bubble has burst -we do see a net decrease in GDP -probably from 14 trillion to around 10 trillion.

So we have 500 times GDP/debt ratio -and no end in site for atleast two years where we will spend atleast an additional two trillion more , the need for the fed to buy treasuries as foreign investors wll be reluctant, a spiraling upward of deficits -to reduce or mitigate the building anger of millions of americans who have lost a substantial amount of wealth, and the continual financing of incompetent US states, corporations and federal government agencies.

One may look at the short term context of global panic and see that it is 'good' for the dollar. However, in the long term -3-5 years - it seems that it would be implausible for people notto lookat the rising deficit, prolonged recession etc in any other view than one with trepidation. Perhaps the US will survive on carry trade as did Japan ?

The End of Gold, Part Two

Speaking of US worker losing his job. How about this -jobcuts my ass
news.yahoo.com/s/ap/20...

The End of Gold, Part Two

I think this more researched article will help people reaize the 'deflation' bogeyman -is just the usual 'excuse' to created to replace well paid American workers with foreign labor in plants built -waiting in the wigs for such a 'crisis'. This has happened with regularity over the last two decades -since the Reagan era/NAFTA etc. First Mexico now Asia.

The article is here:
www.itulip.com/forums/...

I am skeptical that we ALWAYS hear of massive layoffs as a reflexive move by these corporations who have been slowly divesting themselves of employer responsibility. As a business person -perhaps I may have to cut my profit margin, reduce my salry-but to drastically reduce my payroll and contniue to pay myself well- is not good practice in the long term -especially if I wish to build a business.