Dont worry gas is getting alot more expensive, very soon.
When the rest of the world doesn't put faith in our dollar anymore, it loses its status as a reserve currency. And no body buys our bounds and hyper inflation sets in prices are going to go through the roof.
Part of the reason the dollar is so strong lately is all the deleveraging. Everyone is selling off assets from being so highly leveraged and needs to get dollars when they sell off all their assets. As a result the dollar has boomed and assets everywhere have fallen down incredibly.
It's not going to last, and fundamentally the dollar is in terrible condition ready to have a heart attack.
For a country in trillions of debt ( the world's largest debtor), with no production, over consumption, and an economoy based on over 70 % consumer spending the fundamentals look ugly. Unfortunately everything mr Obama is going to do is goin gto make everything worse. They are going to discourage savings and production.
We now have to borrow once again to finance a massive budget. And for a country creating trillions of dollars out of thin air to save the incompetent companies and those who made bad decisions this does not look good for the dollar at all. Once the rest of the world figures out that we cant pay back our debt's and that inflation risk is so much higher then the interest we are paying interest rates are going sky high.
Can you imagine if interest rates went up to 10 %? Imagine if it costed the government 200 Billion a year to fund a 2 trillion dollar budget.
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Originally Posted by bigt10
