Thursday, January 15, 2009

The coming collapse of the US $ (Wendy McElroy)

Wendy McElroy on the coming economic apocalypse:

Wendy McElroyWhether or not you live in America, you will be impacted by the coming collapse of the American dollar, which I expect to occur within a few years; if I were pressed to be more precise, I'd guess in about 3 years. When the collapse happens, it will be as swift and dramatic as that within the housing market and everyone in the media will mutter, "Wow! I didn't see that one coming." It will be true. The media is 'innocent' -- read 'ignorant' -- of economic principles and they seem to believe in political promises. (I use the word seem in order to give benefit of the doubt; perhaps they are merely toadies rather than incredible idiots.)

The collapse will come from two basic reasons or causes.

First (the long-term reason): the fed is and has been "monetizing" America's astronomical foreign debt; it has also been monetizing internal political crises -- e.g. the several bailouts that are only the beginning of many, many more.

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