Collapse of the USD

[zuma]

Let's change the name of the currency to Great American Peso...

Given the **** that was allowed to run for the seven years prior to the crisis, Bernake has done a bloody monumental job in keeping the currency at the level it is... a devalued US dollar is of advantage to an economy with structural problems, to promote local production and consumption and kick start innovation. Those loving imports will complain... but if you buy locally produced goods, no probs (no quite that simple though)...

The US corporations growth in profits over the past decade has been achieved using a two prong approach: cost reduction by moving production to China, and stimulating of over consumption at home... now the cost may still be somewhat fixed due to pegging of the Yuan, but who will consume?... To some fixing the economy is a simple "shut up and shop", other see the need for restructuring of the current system and stimulating American innovation (not a-la Countrywide and Bernie Maddoff style). However, those with influence - and profiting from the current system - will not allow reform.

Don't blame professional speculators... it is just another form of trade, another form of stock market. Blame those that make other speculate without informing them of the risks... The blood of the economy is not just money but also risk management (can you live without insurance of any sort? that IS speculation...).

In the meantime... I am off to check my oil and gas fields... oh, their are doing just fine! ;-D

[mkz]

Dont know if it adds anything of value to the discussion... just found this link interesting... http://www.usdebtclock.org/

No idea if its accurate or not...