Increasingly, I hear friends of mine who really have significant levels of wealth discussing "exit strategy"–how they plan to safely shelter their wealth abroad for the impending US economic collapse. Until recently I have always basically ignored their chatter as a necessary, even particularly colorful, prop on the stage of high finance drama. Lately, I'm beginning to wonder if a complete collapse of the dollar is not inevitable.
The fiscally irresponsible behavior of this administration has dramatically reversed the trend of reducing the national debt and presses us alarmingly close to the brink of the dollar's collapse. I do not fault merely the Republicans for this either. I blame all politicians for their poor, short-cited job performance through the years.
The Clinton administration was, perhaps, able to ride the dot com bubble, to pay down the debt to the extent we did. But this was not true wealth creation, this was, in my ill-informed opinion, just like the inflated housing growth (mortgage bust) we are living today--an artifice of wealth creation. The tax generated from this unsustainable economic growth spurt was spent on the war instead of buying down the national debt.
I had an unexpectedly interesting breakfast this morning, one I will post about in more detail later. The ladies, from abroad, that invited me to join them spoke of the ripple effect the serious US economic downturn is having in their own countries: Chile and the United Kingdom. As interest rates drop in the US to keep the dollar afloat, interest rates must rise in foreign countries to avert inflation in their economies. They were asking me if the US economy is really as bad as they hear it is in their countries.
Then I came across this short little YouTube clip– a "documentary" examining the possibility of a US dollar collapse. The prospects are chilling. The speed at which it could happen make my head spin. And why has this administration not placed domestic economic sustainability as a national priority some 7+ years ago? Oh, I forgot, W chose to distract the nation with a war instead so his cronies could spend the nation into oblivion, making a very small number of Americans exceedingly wealthy beyond their wildest dreams.
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