Foreign Currency Report 14 November 2008 - So will the Dollar strength last?? Personally I think no as like the cheating student relying on the kindness of those sitting beside him during exam time for a passing grade, so too the US has relied on the kindness of foreigners for the maintenance of the American standard of living. But such fantasies can only last for so long. Like the parents of our little swindler, the American people, as well as America's foreign creditors, would soon learn that all was not what it was cranked up to be.
That is where we are now. The trillions borrowed by the US government and US consumer cannot be paid back with Dollars of equal value. A country with no domestic savings from which to draw, angry foreign creditors and with a collapsing tax base has few options. US debts will have to be paid back with printed money. Money printing will cause a severe inflationary depression in the US, meaning it is time for Americans to hunker down. Americans need to reduce spending, buy some gold, and get rid of the gas-guzzlers and vacation homes, downsizing could be survival in the years ahead.
From
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