Full Faith And Credit?????
The value of our currency is simply backed by the Full Faith And Credit of our nation.
Up until about 1980....we were a creditor nation.,,,we had a lot of credit and there was a lot of faith in our nation.
Up until recenly, our deficit was simply a small fraction of our budget and government revenues were growing.
NOW, the deficit is OVER 50% of our budget and government tax receipts are shrinking........
For those Fools that say we have been through worse times.........they have no idea what they are talking about relative to our currency. There has never been a time in American history where the deficit was as OVER 50% of the budget and the private economy was leveraged anywhere close to where ours is today and contracting.
In WW2 we had a relatively small manufacturing base which was able to grow rapidly following the war to supply the world with goods and our nation with revenues.
Now the threshold question is what is a dollar anymore.....when the government can simply print it and give as much of it as they want to to their banker buddies and themselves as wonderful salaries and bonuses.....while letting the private sector collapse.
Why should government and bankers get free money but the private sector get cut off???? What happened to equal protection under the Constitution????
NEVER has this happened before.....in the past, government salaries and expenditures were always a product of tax receipts or reasonable expectations for future receipts........but at $2 Trillion in the hole and growing as burdens increase..........there are no reasonable expectations that government will ever be able to come close to balancing the budget.
Under what terms would you lend if you knew the borrow was not likley to be able to pay you back???
2009 was the year of extend and pretend.....in 2010, will anyone be willing to lend????????