Sunday, January 15, 2006
The Dollar May Fall This March
The dollar may fall this March
America's foreign debt currently standing at $8,184 trillion will hit the debt ceiling as early as February-March 2006
The United States is heading to financial crisis at top speed. That is correct, America will default on its foreign debt sooner or later if the actual trends remain unchanged. Consequently, the whole dollar-based world (including savings in U.S. currency) may crumble. In actuality, the public have grown tired of numerous forecasts regarding an imminent collapse of the U.S. economy. The picture looks pretty grim this time around. Several factors will have an extremely detrimental effect on the dollar, according to U.S. Secretary of the Treasury John Snow who forwarded a letter full of ominous predictions to 21 members of U.S. Congress. The letter was made public after the markets had been closed for Christmas and New Year's holidays - a rather appropriate precautionary move in terms of the international foreign exchange market, which is extremely sensitive to any sound produced by U.S. bureaucrats.
[Read the rest here.]
I am, though, concerned about our borrow and spend administration and Congress, and about that the Chinese are our debtholders.
We shall see what we shall see.
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