WhiteHillAL
03-17-2008, 07:53 PM
A little over a year ago, all of the financial pundits said if the USDX slipped below 75 the dollar would rapidly plummet to 55. Well, we're sitting at 71, and noone is propping up the dollar. They are propping up the stock exchange instead. When rates are cut, the stock market temporarily strengthens, but the dollar slips further.
The Fed has always reported on the M3 liquidity, but they stopped reporting it in 2006 after we saw it peak at 11%. The market has been flooded with additional paper since then to pay for the current out of control government spending. Every increase in the volume of paper reduces the value of each dollar. The dollar was collapsing anyway, and reducing the value of the dollar by circulating more paper causes all of the foreign governments holding our dollars (like China that holds $! trillion) to help pay for our war... (When the dollar is worth less it takes less economic activity to pay it back.)
The cost of everything is about to increase 30% or more... It could happen by the end of the week when all of the major banks report, or it could happen within a couple of months, but it almost assuredly will happen. We are headed for a depression and the dollar is about to become essentially worthless. When the dollar collapses we will all be screaming for a new international currency that will be more stable. When the dollar collapses to worthless status, the new currency will make paying off our federal deficit that much easier (as the debt is based in worthless dollars... say $4 trillion US dollars becomes worth only $1 Billion euros.) We will also essentially wipe out the cost of our social security commitments, by thrusting all retirees into immediate poverty status in relation to the new cost of living.
Stock up on bulk food storage quickly (The price of food is about to get unbelievably expensive, at least until a replacement monetary system is put in place!). Be prepared to join your family in the woods. We all need to be there to protect and help one another. At least the Rainbow family knows how to survive together through such times...
regards,
WhiteHillAL
The Fed has always reported on the M3 liquidity, but they stopped reporting it in 2006 after we saw it peak at 11%. The market has been flooded with additional paper since then to pay for the current out of control government spending. Every increase in the volume of paper reduces the value of each dollar. The dollar was collapsing anyway, and reducing the value of the dollar by circulating more paper causes all of the foreign governments holding our dollars (like China that holds $! trillion) to help pay for our war... (When the dollar is worth less it takes less economic activity to pay it back.)
The cost of everything is about to increase 30% or more... It could happen by the end of the week when all of the major banks report, or it could happen within a couple of months, but it almost assuredly will happen. We are headed for a depression and the dollar is about to become essentially worthless. When the dollar collapses we will all be screaming for a new international currency that will be more stable. When the dollar collapses to worthless status, the new currency will make paying off our federal deficit that much easier (as the debt is based in worthless dollars... say $4 trillion US dollars becomes worth only $1 Billion euros.) We will also essentially wipe out the cost of our social security commitments, by thrusting all retirees into immediate poverty status in relation to the new cost of living.
Stock up on bulk food storage quickly (The price of food is about to get unbelievably expensive, at least until a replacement monetary system is put in place!). Be prepared to join your family in the woods. We all need to be there to protect and help one another. At least the Rainbow family knows how to survive together through such times...
regards,
WhiteHillAL