Will the Dollar be WORTHLESS?
Dollar Trades Below CAD$1.07, First Time Since Oct '08
USD Index Drops Below 78.0, First Time Since Mid Dec '08
Let's think about this for a second, practically every industry in America is experiencing collapsing sales except for those industries that are recipients of government spending. The two most visible are health care and defense. Here is a link to a great article on the rise of defense spending vs. decline in other spending by Mish:
THE IS ONLY ONE PROBLEM, THE REVENUES TO GOVERNMENT IN AMERICA IS EVAPORATING....SO GOVERNMENT IS SPENDING MONEY IT DOESN'T HAVE AND HAS LITTLE PROPECT OF EVER GETTING WITH CURRENT ZOMBULATION POLICIES.
Why would anyone want to hold U.S. dollars when it is getting clearer and clearer that those dollars will be diluted to incredible amounts in the near future if current spending without inflow of revenues continues?
Will Americans keep working for dollars if they soon perceive that those dollars will have little value?
Will foreigners continue accepting our dollars simply produced from deficit spending when they could accept their own currency under the exact same circumstances and promote even more growth in their own nation?
We are entering very interesting times.....it pays to pay attention.