Tag Archives: U.S.current account deficit

When the supply of something is increased sharply relative to demand, the value of that commodity will decline. If the supply continues to increase rapidly and indefinitely, then that item will become worth less and less, with the potential to finally become nearly worthless. This is the Developing Disaster facing the US Dollar and the world. This is the factor that could become the single most important criterion in investment allocation decisions and possibly even for individual financial survival.

Where will the dollar go from here? My answer: Though currency market volatility is likely to continue, I still see a stronger dollar over the longer term. Here's why:

The U.S. owes the most; it is borrowing the most; and its borrowing needs in the future will increase exponentially. This leads to only one possible conclusion. The United States is hopelessly insolvent. Words: 935