reply to post by king9072
You assume the Dollar will crash. Then you assume survival will occur. These are good questions that deserve discussion.
One question is to question the assumption that the Dollar will crash in our lifetime. I'd say that the Dollar is at a 12 month high against the
Euro, yet 30% below the Euro on a 5 year chart. The US Dollar looks good on the charts. It won't crash in the near term.
The carnage that we have recently witnessed has made the equity market cheaper by 30%. That was partly caused by margin calls, and has spent it's
strength. There is international cooperation in play now. "Finance leaders endorse G7 plan to calm markets
WASHINGTON (Reuters) - Finance leaders from the International Monetary Fund's 185 member countries on Saturday endorsed a plan by major economies to
chart a course out of the credit crisis, hoping the broader support will calm markets." See
Lower equity prices are deflationary. The price of oil has dropped significantly as well, and should fall further. Home prices are down, deflationary
as well. Assuming the price in US Dollars of oil continues to decline due to technological innovation, that would also allow us to buy more oil for
less money. The government needs to legislate tax incentives to drill, and allow US oil to drill offshore, and oil should go down further in price.
Incentives for stripper oil production would help a lot too.
Repealing free trade agreements might be a good idea, so America moves towards a balance of payments surplus. Taxing and legalizing certain cash
crops could raise 100 billion a year, if you get the drift. That would further bolster the value of the US Dollar.
Now for the $50.00 question, "Will survival be a problem if the Dollar crashes?" Sure. The Government could simply issue a new class of monetary
exchange backed by silver and gold, and allow the old currency to become debased. The safe bets would still be in a mixed basket of blue chip
equities, real estate, art, coins, jewels and the like.
No need to scarf spare ammo for your hunting rifle yet. America has plenty of reserves that are untouched. Without question, America has and lots
of potentially taxable commodities and abundant crops that have yet to become like legally commercially available so as to become taxable! This
taxation of produce type of idea could make the US Dollar strong again. Folks in Washington might start thinking about how to shore up the balance of
payments, and generate alternative taxes that make Americans smile for a change even!
Happy hunting anyway, it's Dove season in Texas.