The Dollar Collapse
Boing Boing had this great video from YouTube, featuring an economist that I've read before in the New Yorker. He's talking about the perfect storm brewing that could cause the dollar to collapse. Tragically, the sub-prime mortgage insanity could be it. Since the US gov has no real money for a true bailout. There can be many band-aid solutions but when you look at the whole Savings and Loan cost. I think it's over 3% of our GDP. America doesn't have the cash. Also, Asia is financing our debt. So when ... if ... they are unwilling to enact this bail out, then well. That's when the dollar starts to skid. I give it five years. Pending on the next President we select.
A large part of me, really really feels like stocking up on Euros in my nightstand. Now I understand why Warren Buffet has diversified his cash holdings.
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