Does anyone think we're going to pull out of it? If so, how?
I doubt it. There are limits to the imports and the debts to buy them with. Wouldn’t it be wonderful, though, if Uncle Jintao would continue to send both to our government employees, pensioners and other dependents of debt infinitely, for free?
So no, the dollar won’t start rising against falling currencies and inflations of those with huge trade imbalances against us.
By the way, one of the solutions is to radically cut spending in all levels of government, and bite the bullet. Another is to cut local zoning regulations against new, small manufacturing operations in sparsely populated counties.
|At the end of the day, any currency is backed not by physical commodities or a collective abstraction called a government. No. A currency is backed by the character and integrity of men that constitute the issuing nation or body. In short, WE ARE THE GOLD. We are the bearers of the full faith and credit which backs our Federal Reserve notes today. And that, dear readers, is why this country is not going to turn itself around anytime soon, and is almost certainly doomed in the short-run.
We, the people, always have been and always will be the ultimate backing commodity of our currency, because at its core, money is merely the representative device for a mans capacity to produce and create. Dishonest men do not create or produce. They steal. Thus, the currency of a morally degenerated society is by definition degenerate itself. The currency of a degenerate society is the proxy not for a mans ability to work and think, but rather a proxy for a mans capacity to steal and evade work.
We used to be like gold beautiful and warm. Now we are like pig iron - cold, brittle and good-for-nothing. And THAT is what constitutes the full faith and credit that backs the U.S. Dollar. So long as our culture remains degenerate, our currency can never be anything but spiraling, worthless trash.
To me, these are the important points and are generally overlooked by most people who think of the economy as something managed by the President. It is not. The economy is people and capitalism is what they do when you leave them alone. The best planning by a President for the economy is to simply get out o the way.
I don't believe the future is assured, no matter how bad things look today or tomorrow. There will be pain, no doubt. But I have no doubt that the proper political course can turn things around. The welfare state and federal leviathan must be dismantled in a logical, slow, steady and progressive manner. Education must be returned to our children and particularly an education about what it means to be an American. Americans have always been and are still the most intelligent and hardest working people in the world.