The Day The Dollar Died

[Bryan Hancock]

I found this today about a proposed meltdown:

The Day The Dollar Died

I thought some of our resident Tea Partiers would enjoy it. Most entertaining!

[Andrew Evans]

Hi everyone,
I thought you should have an outsiders opinion of what is going on.
I am an Aussie and what we see is that China is exporting cheap products to all parts of the world but especially the USA as a major consumer.
Balance of trade = not good.
So China wont let their currency appreciate to allow their products to become more expensive comparatively with USA products.
USA needs to get its manufacturing industry pumping to employ people to resolve unemployment problem. Cant do it with the USD strong compared to Yuan.
Diplomatic efforts to get China to strengthen currency not working so the USA issues more debt to devalue their currency to make them more competitive in exporting.
Weak dollar is not politically a good message to sell domestically. So we dont mention that this is what needs to happen.
China responds by buying more commodities and gold etc that are valued in USD and therefore go up as the USD goes down.
China owns the debt of the USA and while its devaluing they can buy more USA debt at cheaper prices and one day call it in.

The key is getting spending under control so that internally you dont spend more than you make.....its really the fundamental part of economics.