10/08/2008
All central banks from Feds, Bank of England, and Bank of Japan has all cut interest rates… Now, I know what most are saying… “what does this have to do with me?” Well, first thing you must understand is paper money or fiat currency (yes, our franklins and washingtons)… The United States Dollar is a world currency, meaning every other country has pegged its own currency on the strength of the dollar. WHY? Well, we where at one time the strongest nation in the world. I’ll say it again, WE WHERE AT ONE TIME… Now, the dollar has been crashing… because you do not have a check and balance system. The money is not backed by ANYTHING!!! Its a promise or an IOU from the Federal Government… obviously a government cannot default on its currency, why because they can print more money =)… look what happened to Iceland, history will repeat itself…
dollar chart
Keep in mind the chart only goes to mid 06. The dollar actually hit record lows in 08 mid March or July (dont quote me =P) SOOO… The US Dollar has lost 1/3 of its value over the past five to six years give or take. Now to answer your question on WHY DOES IT AFFECT ME? If you still haven’t figured it out, the strength of the dollar is based on the amount of good or services you can purchase. If dollar becomes weak = more dollars to purchase a particular good or service.
The real scary part is, we just increased our money supply this past month in record history with our MULTIPLE BAIL OUT… Watch this video…
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Bail out passed yet the last 3 days the stock market has went down 15% of its value. Thanks congress!!! (douch bags..) Here is another scary part, the stock market gone down AND the bond market has gone down. This means, people are running and running fast from America and from the US dollar. This is what the regular media doesn’t tell you. Watch out for bank holidays… la la la
BTW… Gold has finally broken the physiological $900/oz mark once again… we’ll see if it supports that, if so it will shot to the moon.
P.S.
Obama vs McCain debate… I swear the whole system is so crooked, the Presidential Debate Commission really needs to change. People think it non-partisan but its ran by ex-demo and ex-repubs… anyways, this is the first debate I didn’t bother to watch… one is full of it, the other makes promises he can’t keep. I think something really really scary will happen after Nov. 4… I’ll bet you million dollars =)
I’m writing this man in… he’s been saying the same thing for AGES!!! No flip flopper here…
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