Thursday, February 23, 2012

Dollar Down

This is a note to my brother over his query of an earlier email from me concerning the weakness in the dollar.   His conjecture was over whether the euro had been oversold regarding the Grecian formula mess.
TO WIT:
Doug,
 I think its that, but I think it has something more to do with the cracks in the dollar as the worlds reserve currency.   This is the point of demarcation being challenged now I think.   This is the result of neo-cons gone wild over the last 5 administrations.   Deep down I would still like to think that Reagan was alright, that he was so focused on winning Cold War I, that he trusted too many people to run the farm.  Tho, it is clear the 8F Group played a large role in his administration, but he was fighting a war.
   But this will bring ruin to this country.   America functionally has to go to war with Iran in order to enforce the dollar as the world's currency, but by going to war, it will put the final nail in our coffin.   We're stuck buddy, we're damned if we do, and damned if we don't.
   The only thing we could do is to pull in our horns, get friendly, pick our fights (Ron Paul foreign policy), and clean up our spending at home (Ron Paul domestic policy).   An America that even approaches a balanced budget would send the dollar screaming higher and the bond market with it.   Who could compete with America if we went in that direction?   No one?   That's the battle field we should be moving to, but as we all know, there is no chance in hell of that happening.
   So I think we're on the verge of seeing the dollar tank and a  new reality take hold.   Dollar down, gold & silver up, commodities up, Canadian up, oil up, and Barry Soetoro down.
   Did you see Pelosi on the price of gasoline.   @*%$ing bitch.   Damn right its speculation, and a lot of that is compliments of Wall Street, and its all been made possible by a dollar gone absolutely stark raving mad because a junkie government is completely out of control, all of which is FED (intended pun) by the local drug peddler, the Federal Reserve Bank.
   Serfs Up America!

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