A Picture That’s Worth A Trillion Words
November 6th, 2009 Posted in Economy
As Obama runs his money-press at high speed, the world’s banks are holding less and less of it… which supports the theory that the US dollar may be in for a collapse.
The frightening trend:
…the second quarter was the only one in which central banks accumulated more than $100 billion in reserves and put less than 40 percent into dollars, down from a 70 percent quarterly average back to 2006.
November 6th, 2009 at 11:33 am
If we hold to the principle that money is a medium of exchange, we are going to have to get back to basics … what does America have that the rest of the world wants to buy? How can we keep innovation and product development IN America, so that other countries want to buy FROM America. As a general rule, people can be expected to do that which they PERCEIVE to be in their own SELF interest. For the American dollar to survive this threat, we are going to have to create the PERCEPTION that it’s in the best interests of the world’s banks to support the dollar. We need to identify those things that make America non-competitive (e.g. Healthcare, high cost of litigation, etc.) and fix those things with PRIVATE SECTOR solutions … that make America great (e.g. Constitutional right to contract, equality, etc.). When the world banks see that the Private Sector in America is FIXING these problems (rather than causing these problems through unbridled greed) the world banks’ confidence in the dollar will be restored. If we wait around for government and greedy corporations to solve the problem … WE ARE DEAD!