Tuesday, December 07, 2004

The disappearing dollar

How long can it remain the world's most important reserve currency?

THE dollar has been the leading international currency for as long as most people can remember. But its dominant role can no longer be taken for granted. If America keeps on spending and borrowing at its present pace, the dollar will eventually lose its mighty status in international finance. And that would hurt: the privilege of being able to print the world's reserve currency, a privilege which is now at risk, allows America to borrow cheaply, and thus to spend much more than it earns, on far better terms than are available to others. Imagine you could write cheques that were accepted as payment but never cashed. That is what it amounts to. If you had been granted that ability, you might take care to hang on to it. America is taking no such care, and may come to regret it..............click for rest of article

I'm sorry but they're right. Bush is spending too much money. I understand we're in a war, but when in a war, the government is supposed to issue bonds or raise taxes (which none of us want) in order to pay for the war. I haven't seen spending like this since LBJ, who spent and spent on vietnam, never prepared and plunged us into a deep recession. the same is coming.

Look, Bush just raised the federal spending limit by $800 billion. not to$800 billion, by as in $800 billion more than last year. this is also the third increase in as many years.

$800 billion is such a large number it's almost meaningless.
How big is a million, and a billion? A way to compare:

1,000,000 seconds. Thats somehing we can grasp. Fine how long is 1 million seconds? About 11 days. No problem; thats a million. In 11 days, you got a million seconds to play around.

Now a billion. A lot more, yes? How long is a Billion seconds?

Over 30 Years.

Shows quite a difference, yes? Well, 800 billion approaches a Trillion, which in seconds?

Over 30,000 Years.

and again, this is on top of the previous increases and overspending of previous administrations.

Bush is not a conservative, certainly not a fiscal conservative. Did Reagan spend money, sure he did. but he also cut spending in other ways to support the programs he wanted. I work for DHS, I see the wastefull directionless spending and it makes me worried and sick.

But there's still time to turn it around.

Oh, and it's December 7th, Remember Pearl Harbor!


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