In God we trust but apparently you cannot trust the USA

In God we trust but apparently you cannot trust the USA

Never forget that the US President was elected by the Americans to protect, develop, and act on behalf of the American people and the US economy, for the benefit of the American people. The Americans did not elect a President of the World.

When the US dollar crashes, the whole world suffers together with the USA.

When crude oil prices escalate, the whole world suffers together with the USA but the USA benefits from an increase in the value of the US Dollars.

Crude oil is priced in US dollars. The latest figure for crude oil reserves is 1,342.207 billion barrels (excluding Natural gas) (from http://www.eia.doe.gov/emeu/international/reserves.html)

With every $1 increase in the price of crude oil, the store of US dollars goes up an additional 1,342.207 billion.

As long as Crude Oil is priced in US dollars, the value of the said currency cannot fall by too much, if the price of crude oil increases, when the USA prints more money like there is no tomorrow. They call it quantitative easing.

For if the other countries do likewise, print money like the USA, they will suffer with the fall of their currencies because crude oil is not priced in their currency but in US dollars.

If China and Russia gangs up against the US, we will be looking at WWIII and the US dollar will rocket because of flight to quality, safe-haven plays.

Really, there is “no answer” to the USA printing money to benefit their economy at the expense of the whole world, if you consider hyper-inflation as “no-answer”. Hyper-inflation would be the only thing that will stop the US from the recklessness.

I truly wonder if a country that brought the world to its knees with their reckless banks lending to sub-prime people and then securitizing the sub-prime debts; a country with banks like that, can be depended upon to behave prudently in fear of causing hyper-inflation.

The markets are not going to be caught with their pants down. The markets will not judge. The markets do not care if hyper-inflation will destroy mankind as we know it. The markets are only looking at how to profit from this scenario.

I suggest you do the same and plan for it so that your pants are not down when the curtains open.

http://forums.delphiforums.com/sunkopitiam/messages?msg=25104.1