A false dawn for the dollar
Published: 04 July, 2009, 10:03
Edited: 07 October, 2009, 07:00
TAGS: Crisis Chronicle, Currencies, USA, Economy
The US administration has been saying it sees the first green shoots of economic recovery. However consumer spending remains low in America, and some experts argue the signs are misleading.
What can you get for a dollar? Not much these days.
Its value dropped considerably at the end of June – and this is despite the Obama administration announcing signs of an economic rebound.
Experts think these are false claims of hope. They see a gloomy future for the dollar and say the $787 billion stimulus package passed earlier this year is only making things worse.
“The green shoots that they think they see don’t reflect any genuine economic growth. They reflect the initial reaction to the stimulus. If you shoot someone up with heroin, you’re gonna get a reaction before there is a withdrawal,” says economic expert Peter Schiff.
And as job losses continue in the US and Americans have less money to spend, their problems become everyone’s problems.
“America consumes 25 per cent of the world’s energy. It takes $3 trillion of the world’s exports every year. If America doesn’t consume, the global markets will slow down dramatically,” believes trend expert Gerald Celente.
Faith in the dollar as a global reserve currency is long gone.
“I think the dollar’s days as a reserve currency are over,” Peter Schiff says.
This becomes obvious when China, the biggest foreign holder of the currency, wants out. They’ve even asked for the topic to be discussed at the upcoming G8 financial summit.
Economists are predicting the death of the dollar. But the US has been printing more and more of them to keep its sick economy afloat.
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I feel our only hope it to attempt to stock up what we can until this passes. How many years will it take? Will it ever recover?
The media in America is so corrupted that 60% of Americans have never heard of the issues talked about in this Russia Today article. Those are the 60% that still rely on MSM. Of the 40% who have heard of these issues, about 90% of them are fooled by what is printed in the higher level propaganda press. The Russians can help those of us who know what is going on. They can pressure their government to never buy US debt again. If the dollar falls more in the coming years then precious metals will benefit.
USA has unlimited reserves of currency. Every second we breath, debtor nations in undeveloped countries pay off debt constantly. This everlasting debt undeveloped countries have with the USA was artificially created by the various dictators that USA has supported in the past. USA steals from the poor to give to itself. For every second that is past, more raw materials and money arrive to the worlds richest nation. Unpayable foreign loans given by the IMF, world bank and USA towards poor nations are only to exploit them. USAsians should know this, but most of them are proud ignorants. USA is a nation that will never go bankrupt.