The thing is, I have a very tiny aptitude for money. If you don't include every step along the way as you explain money issues to me, I'll get lost. Here's an example of something that sounds like it should make sense to me but doesn't:
In September, we saw early signs that the dollar was in trouble. The trade deficit registered at $70 billion but the Net Foreign Security Purchases (NFSP) came in at a paltry $33 billion. That means that our main trading partners are no longer buying back our debt which puts downward pressure on the greenback. The Fed had two choices; either raise interest rates substantially or let the currency fall. Given the tenuous condition of the housing bubble and the proximity of the midterm elections, the Fed did neither.A month later, in October, the trade deficit hit $69.9 billion but, then, without warning, a miracle occurred. The Net Foreign Security Purchases skyrocketed to a "historic high" of $116.8 billion; covering both months' shortfalls almost to the penny.
Coincidence?
Not likely. Either the skittish central banks decided to "stock up" on their dollar-denominated investments or the Federal Reserve (and their banking-buddies) is buying back its own debt to float us through the elections.
See that? WTH does that mean?
One thing I do know is that the USG has "found" over $1 trillion to fight the wars in Afghanistan and Iraq. That's 1,000,000,000,000 one-dollar bills.
The thing I'm curious about is this: Where did all those dollar bills come from?
Before 911, why weren't those trillion dollar bills being used to fight cancer or AIDS or make cars more safe?
They weren't being used for that, so the question remains: where did they come from? Or were they just created from nothing--like when you go to the bank, deposit cash only to have it loaned out to someone else? Essentially, that's creating money from nothing. The way I understand it, the USG borrows money from the Federal Reserve System and they get theirs from investors.
Damn... a trillion dollars? That's a LOT of investments. And where did those investors get their money from? Their versions of the FRS? And where did those FRS's get their money? From investors, and so on...
Doesn't this seem like one giant circle-jerk?
My next question is this, if that guy Whitney is right and the USD has been lowered on purpose, what purpose will it serve?
Ironically, as I was typing this I had a co-worker friend of mine mention something he'd heard on the radio this morning. Apparently, there's this North American Union thing that is starting to happen. Immediately my mind snapped to the EU trying to pass a constitution that would allow the EU to usurp a country's government--in other words, take control away from the people. Luckily, the constitution was voted down by the citizens of a number of different member-countries of the EU. They voted it down because they were educated about the new constitution and how it would remove their rights.
What if something like that would play out here under a North American Union?
Based on the way we fell for the 911/Iraq/Afghanistan/tWAT line of bullshit, we'd vote a North American Union constitution in with no problem at all. We're that oblivious and disconnected from reality.
I gotta do some more research on this...anyone want to help? I still have a dayjob :( .
Orignal From: Wow... A Trillion USD Buys a Lot of Death and Other Things, Too
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