It was always going to happen - the 'stimulus' made this happen. It's one of the very first economic forecast we had. Unchecked government spending - holding interest rates down - ruining the ability of the economy to bounce back normally.
In this case - we are merely reaping what Obama and his ilk have sown.
Asia DUMPING the DOLLAR!! Are you ready for some more INFLATION??!!
BlueRepublican
2012/06/25 16:09:21
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FED Chairman Bernanke has spoken: The answer is more money-printing inflation and economic stimulus aka bail-outs, to get the U.S. out of the recession.
The U.S. Dollar has gained on the Euro because of the Eurozone financial crisis not because our currency or economy is stronger. Au contrare, many countries including India, Brazil and especially ASIAN countries are dumping the U.S. Dollar as their reserve currency.
They are not stupid. They understand that our Fiat monopoly paper is worthless and backed by NOTHING!!
That's why they are buying up the gold and expanding gold mining and backing their currencies with precious metals and competing currencies.
But Blue, what about oil? Everyone needs the Dollar to buy oil? What did Russia, China & India do when sanctions were imposed on Iranian oil? They bought it using GOLD!!
So where is Paul Krugman on this? Where are the economists on this? Where's the FED on this? Where's the White House on this?
America, get ready for the INFLATION BOMB!!!
The U.S. Dollar has gained on the Euro because of the Eurozone financial crisis not because our currency or economy is stronger. Au contrare, many countries including India, Brazil and especially ASIAN countries are dumping the U.S. Dollar as their reserve currency.
They are not stupid. They understand that our Fiat monopoly paper is worthless and backed by NOTHING!!
That's why they are buying up the gold and expanding gold mining and backing their currencies with precious metals and competing currencies.
But Blue, what about oil? Everyone needs the Dollar to buy oil? What did Russia, China & India do when sanctions were imposed on Iranian oil? They bought it using GOLD!!
So where is Paul Krugman on this? Where are the economists on this? Where's the FED on this? Where's the White House on this?
America, get ready for the INFLATION BOMB!!!
Read More: http://www.digitaljournal.com/article/326123
Top Opinion
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★Calliope★ 2012/06/25 17:12:21
1. Asian countries are no longer using $US
2. The US is going to print more money -> inflation
As for Asian countries not using $US, I already knew about that. Makes perfect sense. I hear some places are considering using the Canadian dollar.
As for the US printing more money, whatever. Do what you want.
Think about what really drives the asian economy -- exports. China does everything in its power to prevent the yuan from increasing in value vs. the dollar. It is not in their best interest to deliberately cause US inflation. US consumers are China's best customer. That would change fast if Chinese products became expensive.
Thanks to runaway spending in countries like Greece, Italy, and Spain, Europe is even worse off than the US. If US consumers are crippled by inflation, Europeans will NOT pick up the slack. There would be too much asian production in search of too little demand. Inflation in the US will lead to deflation in China.
We have to start somewhere...
Glad to hear ya' :-)
Obama should not pay attention to what Romney and the right says.
Obama should worry about the economy, unemployment and the national debt or it will cost him his job.
But not every country in Asia has the same or even a remotely similar problem.
In this case - we are merely reaping what Obama and his ilk have sown.
On to my reasoning for YES to some inflation and why the FED is a good thing....
First, the impact of inflation is not all bad particularly when others hold your bond debt...It may be just what the doctor ORDERED if in fact we can take advantage by getting our fiscal house in order before inflation become implied in bond rates...(Reduce military expenditures, roll back ALL Bush tax cuts) Notwithstanding the advantages of some inflation the reality IS IF this were true now we would see an increase in US Bond rates---If we see that we would learn that the world would rather put their money elsewhere and/or the world is implicitly expecting an inflationary period... Markets are the real indicator.
As to the FED - Hmmmm ---- A small review of historic economic cycles before the FED and after the FED would suggest that if you like a 10% recessional panic every 10-20 years then getting rid of the Fed is a great idea but if you think that 2.5%ish maximum GDP declines (1949 and 2009) are better then maybe the FED ain't so bad.