Demise of the Dollar

[Joe Kernan]

Hey! I have a simlar board to discuss these issues.

I agree: the only realistic policy that cane be implemented by the government to 'fix' the economic situation is to institute massive inflation policies. Already, we are seeing the Fed rate approach zero, calls for massive 'tax cuts' and 'stimulous packages'.

All of this will destroy the value of hte dollar.

The great danger here is that the world may panic and sell all their dollars, then we are in deep trouble as the trade ties all fall apart.

The only thing keeping it all together, keeping world confidence in teh dollar, is the US military dominance of world power. The US is the most powerful country in history, and the US military is completely dominant. The world may hate it, but they know taht the world without US military dominance would be chaos and so they will not sell their dollars. It's a tributary system, though no one will want to say that publically. Thus, the dollar will continue to slowly deteriorate in value in order to continue growth, while gold will be actively suppressed so as to avoid comparisons, though it too will grow over time.

The best bet of all is to be in the stock market. That is the only way to benefit from the modern financial system.