So lets do a "what if" scenario, just for fun, ok? Imagine that you could see a year into the future. You see the dollar collapse. So what would YOU do to ensure your survival. (for this exercise lets say you have very little cash) Well I can tell you what i would do. I would max out my credit cards with cash advances and try to grab as many real assets as I possibly could, this way, when the dollar does collapse, I could sell a very small portion of those assets to pay for that HUGE debt I just ran up. Wait a minute! Does this sound familiar? Uncle Sam wants our economy to keep going, but if they see that there is no stopping the collapse of the dollar what should they do? They only need to do one thing. Get the debt ball as high as possible and pay it off when the dollar collapses. Max out "their" credit cards in the form of a 700 billion dollar bailout. This makes sense as to what is happening now. GM, F, and Chrysler are in big trouble. Keep them going now with 25 billion so when the dollar collapses, they can pay off their debt and are running free and clear. Banks? keep them afloat with a few 100 billion just long enough until the dollar collapses and all that debt was pulling them under vanishes! The people that didnt have anything will hurt for a while, but in a few years, America will start over, with zero debt and a "new dollar" which will probably be called "the Amero" Remember...when the Soviet empire collapsed, There were more than a few russians that got rich almost overnight. It was a little bit different because they were communist, so people like managers of companies were the ones who then "owned" the companies after the collapse and were keeping all the profits when selling everything. Here it will be, anyone who had huge amounts of debt connected to real assets will be the big winners. If you have a different opinion i would love to hear it, but I think what is happening today speaks for itself.
I would agree with this because it makes sense. I wonder how the global community will react to this slight of hand we are about to perform.
Well, if i buy real assets i'll be ok. If i just go shopping and spend my money on services like restaurants, limo rentals, clubs, ect...then i would be screwed. But buying assets like gold/silver, real estate, ect...worst case scenario, i lose a bit of value in it if the dollar gets stronger...but seriously....is that going to happen? What does the U.S. produce? 75% of our exports are cars/car parts/computers/medicine and lately we have been relying on 3rd world countries to make our computer stuff, our cars are not selling as look at GM/Ford and medicine....well...we still got the market on that, but thats less than 10% of our exports there. Cant really run a country on that unless we all of a sudden make the world sick. The U.S. has no real production. Its like what peter schiff says. You got 4 guys on and island. 3 of them are asian, one is american. One asian whos job is to fish, another to hunt, another to grow crops. Its the americans job to eat everything. Of course the american doesnt eat it all...he leaves just enough scraps so tommorrow the asian guys can go out and do all over again. You say to the asian guy "hey what are you doing? why you feeding the fat american?" They say "well he is creating employment for us." Sooner or later they are going to figure out, that they would be better off if they just kicked the fat american off the island. Then they would have more food for themselves and they wouldnt have to work as hard. Until we start producing something valuable, it wont be long before the rest of the world decides to stop feeding the fat ass american. If we came up with some kind of alternative energy like cold fusion or something, that would save us (or at least keep the party going for a little while longer) But so far...it doesnt look like the fat american is going to get off his ass.
The Weimar republic tried various things then eventually they just issued a new currency. How is Zimbabwe doing recently? Sometimes when something goes OUT OF the news it's more significant than the news itself..... which leads me to my next curiosity quest... what words will disappear when Obama is coronated? In the Clinton Admin the word "terror" was not in any news at all, I looked for it all the time, it was forbidden from the whitehouse I'd say. I used to challenge people to find it... they never could....
I agree with you with the fact that if the USD were to drastically inflate suddenly things might become like they are on an episode of survivor. I just get the idea that china as well as the rest of the world needs america just as much as america needs them. You're right in the fact that what america is good for has become certainly unclear these days, but for some reason that dependency is still there. Wasn't there a point in time when the USA was self sufficient? and couldn't they be now if they wanted to be? It could all be about the size of the population and the land, but I'm just making a wild guess.
the problem is more about inefficiency than it is about laziness it starts with the education system, this system sucks in loads of cash including tax money, but hardly outputs anything useful, specially universities, it's not about educating, it's about holding students for 5 years by giving them useless homework, and then handing them their degree once they have sucked each student out of his parents money and any student loan he could get, after that it is up to the student to make use of his degree, hypocrisy, connections, ass kissing and zero knowledge to earn back the money his parents spent on him with this shitty, slow and time wasting education system I don't know what to expect from those who get jobs with these degrees from my experience; usually, the stupidest in an engineering team, are the americans, and the smartest and fastest are the russians, but americans are always the ones who take credit for all the work americans are full of ego, and they have fed it to a point where even when they lose they not only do not accept the fact that they lost but actually claim otherwise, and always have someone else to blame their stupidity on with all that said, I really think they are doing the right thing, I hope they keep it up, and keep exporting this wonderful culture to all around the world as they have for the last century, I'm serious, why? because I am all for a one world corruption, it makes work that much easier, corrupt and sick people are usually that much more vulnerable, you can use and abuse them without their soul ever finding out, if they even have one that is, haha