Greg’s Newsletter, Keeping the American Middle Class Informed / December 18, 2008

It appears the bailouts and injecting all of this liquidity and ridiculously low Fed Rate maybe catching up with the dollar. As I and some other economic pragmatists warning of the dollar’s inflationary troubles, may have begun. This article states the dollar has begun to drop in value. It use to be when the dollar fell in value, it was a good thing because it would make our products, which we use to produce here, more competitive in the world market place. Now with so much debt being held by foreign interests, China, Russia, Japan, Middle East, etc and the dollar sliding down in value against the foreign currencies, the only place they will be able to spend their dollars will be the USA, buying out our economic infrastructure. With all of the things we buy are either made outside the country or prices for commodities being controlled by international investment groups, everything we need, will be priced against international exchange rates and the potential for inflation or even hyper-inflation is a real. The end result will be anything invested in the dollar will continue to fall in value, which includes our savings, 401ks, and other investment vehicles. It also means everything we buy will become more and more expensive.

www.bloomberg.com/apps/news?pid=newsarchive&sid=a1MsoPDHjFS4

This just didn’t happen in the last year or so, I began writing about it in 2005 and others have been writing about it as early as 2002 but none of it made it to the main stream media with any real concern. The reason no one wanted to talk about it after the deregulation of the financial markets in 1999, there was an orgy in non-asset based investments, paper only speculation and no one cared at that moment because everyone at that time was making a ton of money. The main reasons for this problem is our current financial industry and business leaders were taught the very thing that we are paying for, short term MBA spread sheet mentality with little regard to anything past the next quarter or two and pure unregulated greed. This video will give you a good synopsis of the people who were warning us of this problem we are now facing and how they were trivialized.

www.youtube.com/watch?v=8PIEGK0IbA4

One final thought, we are trying to base our economy on credit or a better terminology, usury, instead of a sound financial structure, asset based money and banks and financial institutions not being able to do business beyond their asset values. The house of cards has fallen down and now we have rebuild it with a sound system based on assets, not paper. We are in a real disaster and the financial leaders do not seem to care about anything but protecting the financial industry and banks. This approach of establishing a credit only financial system will fail all of us, no one in the world will (eventually) lend us a dime and how will we repay what we already owe?

Greg Goodwin

12/18/08

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