Zero Hedge: “if you’re not preparing for mega-inflation already, you need to start doing so NOW. The Fed WILL continue to pump money into the system 24/7 and it’s going to result in the death of the US Dollar.”
In case you missed it, earlier this week China announced that its foreign currency reserves are excessive and that they need to return to “reasonable” levels.
In politician speak, this is a clear, “we are sick of the US Dollar and will be taking steps to lower our holdings.” Remember, the US Dollar is China’s largest single holding. And China has already begun dumping Treasuries (US Debt).
This comes on the heels of China deciding (along with Russia) to trade in their own currencies, NOT the US Dollar. Not to mention the numerous warnings Chinese politicians have been issuing to the US over the last 24 months.
In simple terms, China is done playing nice and is now actively moving out of US Dollar denominated assets. This is the beginning of the US Dollar’s end as world reserve currency.
Remember, the Republicans are the radical ones for trying to put us on a sound, fiscal path. Sensible pols don’t want to endanger our booming recovery by reining in spending. The answer to all of our fiscal problems is “tax the rich”.
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David Limbaugh: To Retire Our National Debt, We Must Retire Obama
Obama’s ever-changing proposals, allegedly designed to tackle the problem, simply could not work. One of the following must be true: He doesn’t agree that the crisis is grave, doesn’t understand that his policies can’t work, doesn’t have the same vision about America as most of us, or doesn’t intend for his policies to work. Some people believe he’s intentionally damaging America, because they believe he’s too smart not to know that we face a crisis and that his policies can’t work.
I don’t pretend to comprehend the inner child of his past that apparently impels him to pursue this current path of destruction. My educated guess is that his leftist ideology blinds him to the inefficacy of failed liberal prescriptions but also that this same ideology tells him that if things don’t get appreciably better, then that’s OK, too, because America’s had more than its fair share of prosperity anyway.
Hat tip: Brian B
April, 22, 2011 at 2:38 pm
If that’s a real possibility, what are the options? Sacks of gold in the basement?
Not too long ago, businessmen in Venezuela (maybe Argentina) would make twice-daily runs to the bank, taking whatever cash the store brought in, and converting it to US dollars – because the inflation rate was that high. And this was a long time after the famous German inflation.