Even the president of the Federal Reserve Bank of Dallas, Richard Fisher, said today that the U.S. is on a path towards insolvency. “I look at this as a tipping point”, “…its’ going to be very painful”, he said after a speech at the University of Frankfurt.
ZeroHedge.com reports that Bank of America’s chief chartist Mary Ann Bartels, said there is a possibility for another 10% drop in the broader market index, while also reporting that incredibly, the dollar has lost 7.5% of its value in less than 3 months (since January 7th 2011) and more than 17% in just 8 months since August 2010.
Oil is spiking with all of the Middle East conflict, while OPEC expects $120 oil soon.
Gold and Silver are setting new highs once again.
The world continues to lose the credibility of the dollar
The U.S. government continues to overspend (more than it takes in revenue) by nearly $80,000.00 per second of each day. The monthly deficit is equivalent to giving every single person in Shreveport Louisiana a Million Dollars, or lets say Fayetteville North Carolina, or how about Yonkers New York or Spokane Washington. Gee I bet it wouldn’t take long to just simply give every working person in the U.S. a million dollars at this rate… I wonder who’s getting all this money…
While the political machine begins to ramp up for the 2012 elections, chances are that the politicians will not have the will power to do anything significant about the current federal spending, or state spending for that matter.
The point is, the dollar is in increasing danger of a potential severe drop in value, a situation that could come on very quickly and avalanche. Some say that this will very likely occur especially if the dollar index drops below 75 – or worse yet, 71.
What can the regular person do about any of this? The best thing is to simply be aware of the possibility and prepare or ‘hedge your bets’ accordingly. Now, more than ever, is probably a good time to be sure that your ‘ducks are in a row’, and your preparedness plans are nearly complete. The world is in uncharted territory and we should not assume that the world’s economic systems will somehow remain solvent and credible. Things do change, and not always for the better.
Look at the bright side, if you believe that there is real risk, then you will likely take action, whatever that may be. That is a good thing.
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