Oct 26 2006
The Illusion of the Dollar Ready to Disappear?
It seems that the idea that the dollar may not be all it’s cracked up to be is entering mainstream conversation, at least outside of the largely overconfident U.S. perception vacuum. Der Spiegel, one of Germany’s largest news outlets, published an October 25 piece titled “America and the Dollar Illusion.” Says the Spiegel, “The extent of this self-delusion can be read in the balance sheets of the banks: Almost no one is saving money in the United States today. The US foreign debt grows by about $1.5 billion every weekday and has now reached about $3 trillion. Private household debt, both at home and abroad, has reached $9 trillion — and 40 percent of these debts has been incurred since 2001. The Americans are enjoying the present at the cost of selling off ever larger chunks of their future. Arguably, the imminent economic crisis is the most thoroughly predicted one in recent history. Rather than refuting the crisis, the current US economic boom merely heralds it.”
That’s just the tip of the iceberg. Give it a read.
