|GENEALOGY||LETTERS||COMETSCORE||ABOUT REX HOOVER|
Stop taking money off the money tree
There was $853 billion in total U.S. currency in worldwide circulation as of December 2008. The unelected people in our Treasury Department have already printed another $1.3 trillion and have begun to print an additional $600 billion beyond that.
The U.S. Government holds about 262 million ounces of gold. If that gold was to be used to back all the U.S. currency that will be in circulation, it would have to go from a historic $1,400 to $10,500 per ounce.
A devalued dollar will make our exports cheaper. However, in 2010 we have been importing about $40 billion per month more than we export.
Consider what happens if the item we want to purchase is from another country, and that country values a dollar lower than before we printed 2.2 times more of them. Every dollar we earn buys less and less because all that stuff companies like Walmart get manufactured in places like China.
In 2008, Japan owned $626 billion in U.S. Treasury securities. The yen/dollar rate has dropped 17% since Obama assumed office so Japan’s investment has lost $106 billion. What is likely to happen as our Treasury continues to print billions more dollars (Federal Reserve Notes)? When will the holders of our debt say “enough” and start dumping it? And what happens to our shaky economy when they do?
Our great nation is heading for an economic disaster. The newly elected Congress is not going to be able to alter the course for at least a few more years. My advice, use every dollar you can squeeze out of your budget to pay off your debt. Get ready for some hard times, because the price of everything we have to purchase is going up, along with interest on borrowed money.
Stop hoping for the change we were promised and start planning for the change we received.
Rex A. Hoover