Darrell

My Ten Predictions for 2008

One forgets that our government debt is largely financed by foreign holders of the dollar. The question is how long foreign investors, foreign institution and central bankers will continue to accept the dollar in exchange for their goods and services. Our federal reserve will continue to issue currency as long as central bankers continue to recognize it as legal tender.

I think a 10% reduction of the value of the dollar is far too conservative. We will be blessed if it is still accepted as legal tender at the end of 2008.