Al >Will the war crush the U.S. dollar?
I don't believe it will. Why? If the USD hasn't fallen to zilch already, I don't see how a little war costing a few billion here and there, killing a few thousand here and there and lasting possibly longer than Vietnam did, can do anything more to the currency.
1. The national and personal debt in the US is astronomical and climbing exponentially. But, as the saying goes, "Ya ain't seen nuttin' yet".
2. The stockmarket is grossly overvalued by any historic norm and, in addition, there is an enormous property bubble waiting to pop.
3. In my opinion, for what it's worth, the administration is the worst in the history of the nation --- and that's saying something, especially taking the last one into account.
4. The relations between the US and the rest of the world, including many former allies, are worse than they have ever been --- and getting still worse.
5. The Fed is printing money as fast as it can --- with interest rates possibly as low as they can go (zero is a thought) --- and still there's deflation.
I do agree, however, that the war is a complete disaster. In fact, short of the US troops actually being surrounded and massacred as befell General Custer, the situation is about as bad as it could have been. As they said of the British soldiers in WW1, "Lions led by donkeys!"
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However, there is a bright side, if one can call it that. There are economies which are possibly even worse than that of the US and those are Germany and Japan. In the circumstances, how can the USD fall because what does it fall against?! |
