Tuesday, October 06, 2009

The death of the petrodollar

And another sudden hit that will hurt the dollar even more than last year's bailout. I hope you read it. It's extremely big news.

Tim White

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7 comments:

Anonymous said...

Tim,

Without a doubt the biggest news of the day, perhaps the decade. What people do not realize is that the world is diverisfying out of dollars and the dollar will lose its status as reserve currency. This is happening and there is no course to reverse it.

If they do realize this they do not understand the impact. And as goes the dollar goes the USA does too. People will soon be waking up in a second rate nation. Socialism works great until you run out of other peoples money.

October 07, 2009 7:08 AM
wemustbedumb said...

anon 7:08...thanks for letting us know that we can't possibly understand the impact...what does this have to do with socialism? I guess you are blaming Obama for this? You can't blame him for everything going on. Remember the last president we had in office? I think the lingering dislike for Bush around the world is more of a cause for this stuff than Obama. PS: I am a Republican.

October 07, 2009 10:06 AM
Anonymous said...

wemustbedumb,

it is 7:08,

Obama can be blamed, not for the problem, but taking actions that exacerbate it. However you could argue he has picked advisors that in part did cause the problem. Also I never meant that that people can’t possibly understand the impact, but that I think that most people do not realize that the dollar is losing its status as reserve currency and if it does what the impact will be. I am not blaming Obama for everything; you guess wrong. Yes I remember the last president we had in office and you must be dumb if you think a dislike for Bush is a cause for a declining dollar.

So what does the declining dollar have to do with socialism? That will take a lot of explaining for a blog entry. Socialism requires capital which comes the way of taxation. This money is now removed and cannot be used for capital formation which would grow the economy. Even though one could argue the state could use this money to stimulate the economy they have shown that they fail miserably at it. A health or strength of a currency can also be viewed in terms of the economic health and strength of the country issuing it. So this is one aspect of it; and a very important one. Socialism concerns its self with the redistribution of wealth and this is an economy killer as well. It is the imbalance of wealth that grows the economy as the risk takers have the funds to take chances, grow businesses, and therefore create an environment where many can flourish.

The USA is declining because of corruption, decline in the rule of law, and government becoming too big/socialistic; we are repeating history.

October 07, 2009 1:07 PM
Anonymous said...

The currency printing presses of the Weimar Republic pale in comparrison to Obama's printing presses.

It's already beyond the point of no return for the US dollar, and with it, perhaps the Republic itself.

Individuals are well advised to expand their holdings in gold.

October 07, 2009 1:21 PM
Anonymous said...

Real gold, the stuff you hold in your hand, not GLD, IAU, SLV (silver), etc. Not the stuff you have someone say they are storing for you either. You are your own bank.

October 07, 2009 2:23 PM
Anonymous said...

The US is now starting to experience what Regan did to Russia that led to their financial collapse. This time the ROW (Rest of the World) is doing it to the US. The reason is there are only two countries that support Israel; Britain & the US. The ROW does not care about Israel and knows the root cause of our terror problems is our support of Israel. When the US dollar is weakened by this action, inflation rages and become a second class nation lacking leadership, terror will go away. Nobody is nuts enough to use nuclear weapons, they just have to use economic weapons; the same approach we have tried many times with countries we choose not to like or agree with. Gone are the days when the ROW supports what we want. We have proven to the ROW our word has no value, we support ideas and values the ROW does not agree with.

October 07, 2009 8:23 PM
mcjk said...

8:23,

I find it odd that you somehow tied the collapse of the dollar with US support of Isreal. It is a very far stretch. Maybe you are going on the terrorists hate us because we are supporters of Israel and there fore we have to fight these expensive endless wars that are bankrupting us angle. If so I agree in part.

I also find it odd that you state that nobody is nuts enough to use nuclear weapons; the US did in WW2, and if you count depleted uranium, then Iraq.

I would argue that the US has used more military pressure than economic pressure in dealings with countries we choose not to like or agree with.

Lastly we brought this on ourselves; if we blame the ROW then we are missing the root cause of the problem.

October 12, 2009 10:09 PM

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