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Friday, January 14, 2011

Is America headed to bankruptcy?

Well, it's more than a fair question. Yesterday I was reading how the Federal Reserve might soon be in need of a "bailout". More than anything else I've heard in recent months, that raised a honkin' big red flag. But then, I've been thinking for awhile now that conditions are ripe in this country for hyperinflation.

A good friend of mine, James S. Hodges - writer, Baptist minister, and all-around astute thinkin' dude - published an essay today about the possibility of the United States going totally broke this year. And as with all such things, I'm compelled to lean y'all's attention toward it...

Recently there have been disturbing reports on various news outlets about the rise of food and oil prices. Now the housing market also appears to be collapsing once again. The floods in Australia is said to affect the meat market due to cattle being lost that some American companies purchase from. Also the price of corn and rice is said to be on the rise as a result of not so good harvests. And on a side note, should we be surprised since corn is used to make ethanol as we see the increase of ethanol placed in our fuel supply?

To go even further on this matter, our dollar is continuously being devalued by the U.S. government printing more paper. They got by with it for a long time since the foreign governments always recognized the dollar as the standard exchange of currency since World War II. Oil, for example, was always purchased with dollars by other countries instead of their own currency. But it is even more disturbing that in restaurants and stores in foreign countries are now placing signs on their front doors no longer accepting the American dollar.

Hit here for more of James' observations. One of the more disturbing things that he makes note of is that American currency is being brazenly ignored in international markets as a form of payment.

But, can ya blame other countries for that?


GD said...

The time to worry will be when China starts shifting from the dollar as it's reserve currency... It is a worry though because the US deficit is huge and a loss of confidence could do serious damage to those least well off.

Great thought provoking post.

Brian Fesperman said...

Very good post. As a reminder, it has long been argued that the decline of Rome is attributable to the decadence and arrogance of its government and people. It should also be noted that, despite our efforts to the contrary, history tends to be cyclical.
Our current situation and path only reinforces these insights.
This isn't commentary on the current presidential or congressional administration, but more about the general attitude of the general public and the entire political attitude over the last several generations.

Anonymous said...

Good post, I also get most of my economic predictions from a Baptist minister in Reidsville.

Chris Knight said...

I should have also made note of the fact that James is quite a talented novelist. And he's tapped to make a cameo appearance in my next film project :-)