johngonole

How Bad Is the Dollar's Fall?

If house prices stabalize than the dollar will stabalize. As long as house prices droop the Fed will print and put it into circulation via govt deficit spending to bail out the banks and prevent a depression. In essence they will confiscate the wealth in terms of dollar value of savers to pay for the excess of the irresponsible. The rich protect thier businesses this way and help the poor. The middle class gets their purchasing power wiped out and continue to work their asses off for these pigs.

The pigs are the wisest of all animals.

I personally don't care if the dollar is backed by gold, silver, govt owned land, steel, oil.........but it should be backed mostly by hard assets. Even if the basket of hard assets fluctuates it would prevent them from simply printing money. The booms and busts have always been caused by monopolist, central planners, and government interventionism of one form or another.

The backing of the dollar doesn't have to be perfect I mean because fractional reserve banking isn't perfect. But our currency is almost 100% backed by the faith that our government can pay back all that debt. And now the Federal reserve is backing our currency with bad mortgages. Our government is about to enter an era of forced high spending via medicare and social security. Sounds like our currency is more and more like a house of cards.

I think the fact that oil is traded in dollars is the main thing that has allowed the world market to soak them up without affecting us. Imagine if all those foreign owned dollars all the sudden came over here and were spent. Yes we would all have work but everything would costs so much. Hyper hyper inflation. Our land would be bought etc...

If the Federal Reserve would just bow out after the bail out this time and stop intefering perhaps we could actually work ourselves out of all this debt. Its almost as if they want everyone to be broke.