Learcapital.com
Markets around the world have been in serious decline most of this year. In fact the Financial Times reported in its weekend issue that on a global scale the markets are now down the most in 26 years! Inflation rates are on the rise everywhere, including China. But China can’t engage a tight monetary policy to fight inflation, because that would likely lead to a flight of hot money out of the dollar and other weaker currencies, thus leading to a strong Chinese currency which would hurt their huge exports. It could also lead to a crash of the dollar. If/when that happens, there would be a hellish gnashing of teeth heard around the globe, as wealth held in the form of dollars will be quickly vaporized.
The Chinese and other countries know the day of dollar doom is coming which is why the dollar is continuing to come under pressure. Americans for the most part are not yet aware of the dollar’s fate and how that is going to devastate their standard of living. But there is a growing sense among foreigners that they don’t want to get paid or hold dollars lest they be holding them when the plunge in the dollar’s exchange rate leads toward zero value for the Greenback. None of the major exporting nations want the dollar to crash just yet. They want more time to trade out of dollars and into something of value if they can before the final day of reckoning hits America and its fraudulent currency. More
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