The nation’s economy hinges on the fate of the greenback and the White House knows it. That is why it is doing anything it can to slow the slide.
Even if it is entirely psychological.
Today, reports from Washington that show Obama may have plans to use up to $210 billion in TARP money to lower the nation’s ever-increasing deficit. $210 billion democratic deception.
With this idea of “paying down our debts,” it is vital to remember the Treasury didn’t pull the $700 billion in TARP funds out of some cavernous account. We borrowed that cash. And now Obammie wants to use the borrowed money to pay back our debts, minus a year’s worth of interest of course. It’s like taking out a loan to pay off your mortgage.
The timing of these rumors is more than suspicious.
Just yesterday, China slapped the currency markets in the rear by once again raising the notion of dumping the dollar and making a sudden change in its exchange-rate policy. less than 24 hours later, Obama has a $210 billion check in his hand ready to “repay” our debt?It is money from one hand, around the back, and into the other. But it gets better.
Obama is not the only one trying to mask Uncle Sam’s debt problems. Just about every exporting country in the world is desperate to keep the dollar strong. They have to. Their economies depend on it.
Rumor has it countries like Russia and South Korea have been buying dollars on the open market over the past few weeks, in an effort to keep the greenback’s slide from gaining even more momentum.
The governments would rather risk devaluing their reserves than allow their economies to suffer from the effects of a weak dollar. Looking forward, the question is how long can the manipulation last? How long can the dollar remain artificially inflated?And how long until the markets naturally take care of the situation?While we may not know the exact answer to any of those questions, it does not take an economics scholar to realize the outcome will be horrific, at least for those of us with dollars in our pockets.
China is still on a greenback buying spree. Watching China, yes sir, that’s what I am doing.
HAVE A GOP DAY!!!