socialize_me
10-13-2008, 11:03 PM
Given the data of projected M3 and how much of our debt is held by foreign governments, the continued expansion of these bailouts and welfare will surely exponentiate the money supply even further. The Federal Reserve keeps pushing new credit into the system of which is at a stand-still so its effects may be months or possibly years off.
However, if the Dollar continues to be destroyed and China de-pegs their currency, as well as other foreign currencies strengthening around the world, then we will import significantly less which is very ominous for a country that runs a $70 billion trade deficit a month. The flood of US Dollars into this country from foreigners will be immense which will result in hyperinflation in prices. The ONLY way I see hyperinflation can be averted is through a global central bank system. Most of our debt is held by foreign central banks. If those central banks decide to start unloading those dollars onto US soil and towards US assets, there will be hell for this country.
Basically, we are currently being done favors by foreign central banks. Of course if they were to do this, the US economy would be trashed and their industries would subsequently be crippled significantly; however, if the Dollar does weaken, the incentive for central banks to abandon us becomes greater. The only way to avert this is through some sort of new globally coordinated organization that would abolish or freeze the US Dollars held by foreign central banks to prevent those Dollars from coming home to roost.
However, if the Dollar continues to be destroyed and China de-pegs their currency, as well as other foreign currencies strengthening around the world, then we will import significantly less which is very ominous for a country that runs a $70 billion trade deficit a month. The flood of US Dollars into this country from foreigners will be immense which will result in hyperinflation in prices. The ONLY way I see hyperinflation can be averted is through a global central bank system. Most of our debt is held by foreign central banks. If those central banks decide to start unloading those dollars onto US soil and towards US assets, there will be hell for this country.
Basically, we are currently being done favors by foreign central banks. Of course if they were to do this, the US economy would be trashed and their industries would subsequently be crippled significantly; however, if the Dollar does weaken, the incentive for central banks to abandon us becomes greater. The only way to avert this is through some sort of new globally coordinated organization that would abolish or freeze the US Dollars held by foreign central banks to prevent those Dollars from coming home to roost.