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Showing posts from September, 2008

Weak Dollar

Weak Dollar Here is a quick look at what the weak dollar is doing for America and why. I will try to keep it simple. We live beyond our means, but due to a excellent credit history in the past, and the greed of the credit industry, we get a lot of Visa cards. When we get close the maxing out a card, we get a new one. The credit industry (China, Dubai, etc) need a safe place to keep their money -- it's a win win. We roll over the old debt into new debt. We need to keep the money coming, because our system (Capitalism) only works with growth -- living within our means is death to our way of life. We finance everyone -- we allow companies to leverage with a dollar for every $30 of risk. When the loans go bad -- only one out of thirty has to go bad to break us to even. Big boys don't care -- they already got the money in commissions, but feeding the machine with the promise of the future allows us to maintain a collective illusion that we are dealing with hard money e