Currencies
Best Financial Markets Analysis ArticleLarry Edelson writes: No doubt you’ve heard about last week’s G-8 Meeting in L’Aquila, Italy. And no doubt you’re hearing a lot of sound bites from the G-8 and the media about the U.S. dollar being a very hot topic at the meeting.To be sure, the dollar is the central topic on most leaders’ minds right now. After all …
arrow The TRUTH ... The United States is now the most indebted civilization in the history of the world and ground zero for the financial crisis.
arrow The TRUTH ... Foreign investors are growing very tired of the United States government’s national debt, which has now hit $11.5 TRILLION and is growing at the rate of about $3.88 billion a day. That’s $2.7 million per minute, and $44,000 per second!
arrow The TRUTH ... And we all see the federal budget deficit exploding higher, now at $1.84 trillion … equal to almost 13 percent of GDP — hocking our children and grandchildren’s lives to an insurmountable mountain of debt that would require more than 80 percent of the world’s surplus savings to finance.
Moreover …
arrow The TRUTH ... We all see the Federal Reserve, the steward of the nation’s dollar, also in hock up to its eyeballs, its balance sheet having ballooned from $860 billion in liabilities in September 2008 to more than $2 trillion today, and likely to rocket even higher as the Fed continues to print money out of thin air like there’s no tomorrow.
Not to mention the unfunded government IOUs coming due for Social Security, Medicare, and Federal pension payments — totaling an estimated $104 TRILLION.
But so far, the media is almost unanimously proclaiming that the dollar will somehow manage to remain the world’s reserve currency.
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