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America is Greece

Marhefka Wrote: Jul 03, 2012 9:39 AM
"Due to our debt to bondholders, the Fed, and other countries, we continue to devalue our own currency as well. The United States might soon face a similar fate, where our dollar might be more valued for use as toilet paper then as an exchange for goods or services." Not trying to act dumb or anything, but just how is debt to our bondholders devaluing our own currency?
Louie13 Wrote: Jul 03, 2012 8:32 PM
It’s a fair question Don. The value of our fiat dollar, which has no intrinsic value of its own, being backed by nothing but faith and confidence in the system, depends, among other things, upon the amount of dollars in circulation relative to the demand for dollars. When fewer dollars are in circulation, they are worth more. When more dollars are in circulation, they are worth less. The FED has been printing dollars like there is no tomorrow, in an attempt to artificially boost the economy, and put off the day of reckoning, but that brings down the value of the dollar. But the day of reckoning is coming. All they are doing is kicking the can down the road.
Oldschool7 Wrote: Jul 03, 2012 12:16 PM
Where you been Don? The dollar has dropped almost 40% in the last 4 years . . .
The printing presses at the Fed are running continuously . . . monetizing O'bammy DEBT . . .
Don . . . do you have any friends that got rich using their Credit Cards?
ACinNC Wrote: Jul 03, 2012 3:31 PM
Don't be so arrogant. It was an honest question seeking help & clarification. Your kind of response causes people to miss opportunities to learn, fearing ridicule or smarter-than-thou answers. Not everyone has time to follow the complexities of monetary policy, other than the big picture that we're on a path to ruin.
Marhefka Wrote: Jul 03, 2012 8:24 PM
Thanks for the reply Oldschool7. Let's take a real simple situation. The Fed sells me some Treasury notes at 3%. Then they pay me interest. The interest could have been used for a government expense but instead they must pay it to me. I don't see how that devalues our currency.
VickyD4Liberty Wrote: Jul 03, 2012 11:44 AM
Because of fractional reserve banking, massive inflation as a result of the Federal Reserve printing money whenever they feel like it.
Not to mention the fact that our currency is no longer backed by something that has value.

As the world watched the Greek elections, I thought to myself, why should I care about a country whose population is around 11 million and is in debt for 350 billion?

Then it hit me, America is a country with a population of more than 360 million, with a national debt of nearly 16 trillion. All of a sudden I began to worry because if the world is waiting with baited breath to see the how a tiny country like Greece handles its election in midst of economic turmoil, I can only imagine what the world is...

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