Quote:
Originally Posted by ILG
So, this is just a random belief you pulled out of the air? Are you promoting that fear? Or are you basing this on some facts of some sort?
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Well it is pretty clear that the fear spoken of is there. People are bailing on the market even though more are taking a wait and see (or maybe a "as soon as I can recoop some of my losses I am bailing out") approach at the moment.
The reason this fear is there is because people are beginning to realize that our economy is built on debt. If you or I lived a lifestyle built on debt then that would mean that our current standard of living was not based on our real purchasing power and we were living a lifestyle higher than what we could actually afford.
It would also mean that this could not go on forever. Eventually the debts are greater than our ability to pay and that is when the house of cards start crumbling to the floor.
That is where the United States (and much of the modern world) is at right now. We are in debt beyond our ability to ever pay it back.
The only value the dollar holds comes from 2 places. One is the amount of trust people have in it. That trust is dwindling. People are bailing on the dollar because they don't trust it to be a stable currency because of our enormous debt and the fact that our already overwhelming debt is still growing by leaps and bounds.
The other place the dollar gets its value is from supply and demand. For the life of the oil industry if you wanted to buy oil you did it in dollars. This created a demand for the dollar. Countries are now bailing on the dollar as the currency that they trade their oil with.
Iraq bailed on the dollar as its oil currency.
Iran either already has or is about to.
Other countries are now bailing on the dollar as their oil purchasing currency.
We are in debt up to our eyeballs and STILL spending like there is no tomorrow. This kills peoples trust in the dollar.
The demand for the dollar is plummeting.
Since the dollar is based on thin air these 2 factors are all there is that give value to our dollar and we are losing ground on both fronts fast.
The dollar is worth less that 4 cents today compared to its worth in 1913 and it continues to plummet.
The rising cost of the groceries in the grocery store is because your dollar is worth that much less than it was a few years ago and they require more of those dollars to give you the same product.
The shell game has continued longer than anyone could have imagined but America is about to face some cruel realities.
So... I'm not sure about Charnock... but that is why I feel that he (I assume.. he) is right.
If you or I lived our lives the way the US Government has been doing we would be facing complete and utter financial collapse.
It takes longer for governments than it does for families... but never fear.... the piper WILL be paid.
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