nations have NOT printed fiat currency with discipline
nor have they controlled where those fiats are stored
there is zero precedent for a fiat currency to survive indefinitely
when one fiat begins to dominate worldwide, its own wide surplus becomes an agent working against it in the supply/ demand dynamics
inevitably the trend begins to work in the opposite direction
since when is increasing US money supply fiat currency from $4 trillion in 1990 to over $7 trillion in 2002 "responsible" ???
the dollar is not only saturating the world, it fails to meet constitutional requirements in our USA
its usage as STORE OF VALUE has become distorted by its alternate form as the USTBond
the flipside of the USdollar is a debt instrument
that is untenable, a perversion of store of value
I was really surprised to hear such an absurd assessment
do you detect any increase in currency-based earthquakes in the 1990's?
Dollar in 1994
Mexico in 1995
Thailand and Asia in 1997
Russia in 1998
Argentina, Turkey, Brazil in 2001
and the biggest: Japan in 2002
shall I go on?
take a look south of Korea, east of China, right now
since the 1980's the US$-DMark-JYen triangle has served as a seemingly stable replacement for a gold standard fortifying currency
but in 1990 the Euro placed the DMark in suspended animation
and the USdollar picked up the slack, rising further in relative value
in 2000 the JYen began its death spiral
and the USdollar and Euro, mostly the dollar, picked up the slack, rising further in value
now the dollar is clearly overvalued, recognized the world over as overvalued, discussed by Treasury and Federal Reserve openly as overvalued, and esp by US exporting companies as destructively overvalued
the US$-Euro-JYen triangle is now seriously damaged
the JYen is listing badly, the Euro is struggling to gain acceptance, and the Dollar has too much influence
it is a broken currency system
but the financial illiterates have yet to recognize this
since the 1980's the US debt has been accelerating
the distortion now is that US economic health is now seen to occur side by side with widening trade debts
as the US MZM has doubled and thus meeting the basic definition of "inflation", which plant the seeds of future price inflation of goods & services, two things inevitably must happen
the first has happened: USA exported inflation in 1990's
the second will happen: USA will someday import inflation in the 2000's
nobody knows its dire consequences
the gaping US trade deficit has SUSPENDED the consequences of irresponsible abuse of our printing press USdollar
when the USdollar slides further, we will import inflation
and make up for over a decade of abuse
/jw |
