Question about this dollar crisis.

[christ_ambassador]

What happened that we got to this point (either general or specific)

Is Bush to blame for this Fiasco? (is Fiasco an understatement?)

Could this be the end of the US as we know it?

[Judah]

While there are many underlying issues to your questions, the simple answer to the first one is that the US government has continue to borrow huge amounts of money from the Federal Reserve. With each borrow, the dollar is diminished in value. We have been selling these dollars to investors from other countries. They have become less and less interested in them so the price goes down. Supply/demand principles of economics. It is more complicated than this but use this for simplicity sake.

The President has little to do with this type of economic policy. However, his spending practices have been a major contributor to the need for us to sell more debt (dollars) so we can pay for the war among other things.

Barring some kind unexpected major disruption, the US dollar should recover its value within a couple of years against the Euro and other western Europe currencies. It probably will not against China and the other major Eastern countries for a much longer time, if ever.

The dollar going down does not have as much of a negative affect on the macro-economic picture at home here in the US as it does a positive one. It's decline makes it easier for us to sell our goods and services to other countries. However the change to wards positive trade balance takes awhile with some micro-economic pain.

Fiat currencies must continue to deflate in their buying power by their very nature. If they didn't, the whole world economy would collapse. Which it will some day, according to the Scripture.

[jds6958]

What happened that we got to this point (either general or specific)

Is Bush to blame for this Fiasco? (is Fiasco an understatement?)

Could this be the end of the US as we know it?

Bush contributed, but he was just an itty bitty player. It was a collaboration of countless government officials, foreign and domestic, some knowingly aware of consequences, some mostly ignorant, across many decades.

If the world rejects fiat currencies and forces an adoption of asset backed currencies, then yes it is the end of the US as we know it. It would completely disable our debt driven economy and reduce our standard of living that requires exploitation of developing countries.

At the very least I expect an event that will merit multiple chapters in economics books for generations to come, should this not be the end time events that Scripture discusses.

I have an exit plan in place should my family need to leave the U.S. for safety. But I hope that is not necessary. I have prepared for the worst and we are praying for better.

[christ_ambassador]

I've heard from some economic savvy folks that China played a role as well. purposely driving down the dollar against their yen

My general thought and I'm no economic major or anything but, Bush is fiscally irresponsible. wanting to continue these wars and such:hehee

I think the US is on the decline sooner than later. The ME situation shows that the end times players are in place and the curtain is about to go up.

[Judah]

I have an exit plan in place should my family need to leave the U.S. for safety. But I hope that is not necessary. I have prepared for the worst and we are praying for better.


I sent you a private note about this. Do you mind taking a look?

[logosone]

Economic busts have run, in more or less, 60 year cycles. The balance is due.

[seekingtruth1]

Yes WE pay but companies make bick bucks of teh war including the owners of teh Fed!

I've heard from some economic savvy folks that China played a role as well. purposely driving down the dollar against their yen

My general thought and I'm no economic major or anything but, Bush is fiscally irresponsible. wanting to continue these wars and such:hehee

I think the US is on the decline sooner than later. The ME situation shows that the end times players are in place and the curtain is about to go up.

[seekingtruth1]

I sent you a private note about this. Do you mind taking a look?

May I ask what your exit plan is?

[LoudRam]

May I ask what your exit plan is?

Walk out...Our borders are wide open. :hat

[jds6958]

I sent you a private note about this. Do you mind taking a look?

PM sent