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alstry (35.38)

Economic Suicide

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November 02, 2010 – Comments (2)

For the first time in history......America is pursuing a massive inflationary policy WHILE we are a massive NET EXPORT nation.......in other words, we are printing money so we can ship it overseas to import foreign goods and services.....

In the past, that money came back to America to buy our goods and services.....now much of it stays overseas because we don't produce very much,....and the money stays overseas even when buying from American companies who fail to repatriate their currency.

The CONSEQUENCE:  The world demand for goods and services increases in dollar terms as the dollar falls in value, prices for commodities increase, and cash flow in America evaporates.....including domestic sales and tax receipts.

When you are printing money but producing little...the value of your currency declines as those accepting your currency realize there is less and less backing your dollar so they demand more and more dollars for their goods.......as more dollars are demanded, we must print more which causes the dollar to fall even faster.....

as relatively little currency is coming back to America.....domestic business sales and tax receipts continue to implode driving even more printing and accounting fraud to conceal the deterioration.....this is evidenced by the obnoxious amount of headlines I post demonstrating collapsing domestic business.

At some point, the value of the dollar will become so low......and our NEED to export will be so high to support our nation.......that we will be forced to either TAKE others goods or export that which we have a competitive advantage and can drive sufficient currency.....and if history is any guide for nations that have followed this path that had to capacity to take the next step.........often the only choice

the export will be military goods and/or war in order to generate foreign currency or bring back goods.........

http://en.wikipedia.org/wiki/Military_Keynesianism

2 Comments – Post Your Own

#1) On November 02, 2010 at 8:41 AM, alstry (35.38) wrote:

the first sentence should read....

America is pursuing a massive inflationary policy WHILE we are a massive NET IMPORT nation.......

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#2) On November 02, 2010 at 8:41 AM, alstry (35.38) wrote:

the first sentence should read....

America is pursuing a massive inflationary policy WHILE we are a massive NET IMPORT nation.......

Report this comment

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