I know this is sad, but I woke up out of a sound sleep the other day with the vision of Ben Bernanke and Timmy Geithner as high school lunch ladies. Why you might ask would that vision enter my mind. It has to do with the USD and our $12 TRILLION debt. Below is my visual look at the USD's future.
The Chinese, Japanese, Indians, Russia, Europe, and the Middle East are the high school kids in the lunch line. Back in the 1990's, when the U.S. issued debt (served lunch), it was high quality (filet mignon) because deficits were under control, no wars were being fought, and our economy was humming. As time has passed, we have devalued our dollar by spending like drunken school boys on wars of choice, new government departments, new Medicare entitlements, bailing out bankers, bailing out auto makers and their unions, and providing "free" healthcare to all.
Now, when the Chinese, Japanese, Indians, Russia, Europe, and the Middle East saunter up to the lunch counter we shovel a heap of unknown gruel onto their plates and tell them it is filet mignon. They are not stupid high school kids. They know it is crap, but they really have no other options at this point.
But, one of these days someone like Bluto Blutarsky is going to spit the food out and yell food fight. When that happens, all hell will break out. The kids will say no to the gruel and throw it in Bernanke and Geithner's face. The dollar will collapse and it will take a long tome to cleanup the mess.