My point is that uncontrolled spending (both foreign and domestic) are mainly to blame for the dollar's drop. GWB had a majority in Congress and that did not curtail spending, quite the contrary. Dennis Hastert was one of the biggest pork barrel politicians of our time. At least Clinton showed that he could control spending better than either Bush. I'm not going to fault Reagan because I actually think we got our money's worth with him. Those were the good old days...
What happens if the USD loses its reserve currency status...
- Thread starter Mvic
- Start date
My point is that uncontrolled spending (both foreign and domestic) are mainly to blame for the dollar's drop. GWB had a majority in Congress and that did not curtail spending, quite the contrary. Dennis Hastert was one of the biggest pork barrel politicians of our time. At least Clinton showed that he could control spending better than either Bush. I'm not going to fault Reagan because I actually think we got our money's worth with him. Those were the good old days...
Quote from brocklanders:
Well, you see almost an identical sharp drop in the dollar during the Reagan and first Bush years as well. It has more to do with the level of debt and deficit accumulation than the dot com bubble. I am no fan of Bill Clinton but he was more of a fiscal conservative than either Bush ever was... Even Alan Greenspan will tell you that.
lol, nice graphic.
The idea that there is a need for a strong military is being put to shame as Ahmadinejad flies into Iraq announced and walks up into the Green Zone during the day while Generalissimo Bush has to fly in stealthed and going through the back door. I see that Al Sadr controls the market McCain visited last year. $600 billion spent and the Iranians and terrorists run Iraq.
some are arguing that the USD as a reserve currency is actually gaining market share. china and other countries dont report their reserves to the IMF, the imf numbers show euro gaining % share on worldwide reserves but adding the shadow countries who fix or prop up their currencies the dollar reserve top doesnt seem to be on the horizon
If the Federal Government doesn't stand in the way of debt deflation, the dollar will do a moonshot as the garbage debt destroys commercial bank money thereby reducing outstanding dollars.
Ultimately wealth gravitates to the guns for safety.
Distinguish between Federal Reserve Notes and Commercial Bank money and you will see the light.
Ultimately wealth gravitates to the guns for safety.
Distinguish between Federal Reserve Notes and Commercial Bank money and you will see the light.
The debt is already at "unrepayable" levels. Its just that it hasn't been recognized as such, yet.
Lets face facts. There is no way they could raise taxes enough to run a $100 billion per year surplus. If they raise them higher, revenues drop.
So we just keep borrowing till no one will lend on the basis of being repaid in US dollars.
TICK, TICK, TICK, its only a matter of time...
Lets face facts. There is no way they could raise taxes enough to run a $100 billion per year surplus. If they raise them higher, revenues drop.
So we just keep borrowing till no one will lend on the basis of being repaid in US dollars.
TICK, TICK, TICK, its only a matter of time...
Is that the sound of the clock of an atomic bomb ?
Clinton had no control over spending-- the republican dominated Congress did. Because virtually none of his initiatives passed, all of the money he diverted from the military and the tax receipts he collected caused the US to fall into recession (9/11 didn't help either). The only way out was to spend and to expand.
the problem now is interest rates. They are still entirely too low but because of political pandering over real estate prices, the dollar suffers and inflation runs rampant.