Posts Tagged ‘Politics’
The Arab Conspiracy to DUMP the US Dollar
At least thats what its being called. News reports have surfaced recently that the oil producing nations have been having secret meetings with the intent if dropping the US Dollar as a meduim for exchange and instead creating a NEW currency or a baskett currency. This has widely reported as some sort of ANTI-American conspiracy.
Nothing could be further from the truth. In reality, the US Congress is to blame for all the woes facing the Dollar. If the Dollar was holding its value these other governments would not want to dump it. However, as Congress continues on with its plan of massive government spending not supported by by the tax base or economic growth there can be only one outcome and that is a devalued dollar.
As the Government deficit spends (Spends Money Not Supported by Tax Revenue) they have to print money in order to do it. When you print money faster than an economy grows you devalue the money currently in circulation. Any time you have more of something the price goes down. Now if you had an investment in your neighbors house and you discovered your neighbor was going to tear the house down, would you not want to rid yourself of this investment before your neighbor makes it worthless?
Of course you would, and thats what is going on with the push to rid the world of the deflating US Dollar. Its not ANTI-American – in fact for americans who want a small Government which obeys its Constitution restrictions this is the best thing that can happen. If were lucky the rest of the world will drop the dollar and this will force Congress back in check.