the dollar meltdown - charles goyette

[...]... cushion the consequences of their prior bubble popping; the dot-com market But gold’s recent advances signal that we are in a period of major transition now The American dollar s role as the world’s reserve currency is inherently unstable and the signs of a breakdown are all around Just as the monetary authorities have been unable to reinflate the high-tech bubble or the real estate bubble, when the dollar. .. Section III puts it all together: how the dollar meltdown happens, the most likely scenarios, the role of foreign creditors like China, and how the authorities will react to these problems of their own making A currency crisis is not a pleasant event The dollar meltdown will change America and you’ll want to be ready for it when it comes Section IV focuses on how you can survive the meltdown and even prosper... Peters to subsidize a few hundred banking Pauls; thinking all the hustle and bustle of their activities will make them seem capable But all the while they flail about in the darkness of their economic ignorance, believing there is only one side of the balance sheet, the assets of recipients, while ignoring the liabilities they pile on the taxpayers There is an old Zen saying that it’s better to be doing... think that the government should bail the banks out of bad loans they made, but allow them to keep the profits on the good ones —Milton Friedman Nationalizing Finance “You people move along There’s nothing to see here The authorities are in charge Keep moving!” That was the spirit of a piece in The New York Times , “Here Are Some Answers to the Public’s Questions About the Financial Crisis,” the morning... people invested in the market, the greater the effects across the economy when the bubble bursts In viewing the Paulson plan, the Cassandras must have wondered how often the same discredited economic nostrums need to be refuted But the administration didn’t turn to Ron Paul for advice Nor did it consult the scholars at the Ludwig von Mises Institute, who had warned about the government-sponsored expansion... loans available to low- and moderate-income borrowers Of course it presaged problems Even then the story cited Peter Wallison, an American Enterprise Institute fellow, saying the program had the makings of the savings and loan debacle all over again “If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.” The steps of increasing... me on the air in my studio The Republican advantage in the House had grown It was the first time since FDR that the president’s party gained in the off-year elections of his first term And they retook the Senate Kyl, chairman of the Senate Republican Policy Committee, was flush from victory and looking forward to being a part of the new Senate majority I had other priorities: “Can you look me in the. .. in the housing market, the government’s policy of diverting capital to other uses creates a short-term boom in housing Like all artificially-created bubbles, the boom in housing prices cannot last forever When housing prices fall, homeowners will experience difficulty as their equity is wiped out Furthermore, the holders of the mortgage debt will also have a loss These losses will be greater than they... institutions and individuals should rely; then you will agree that the government’s debt is much larger than the $12 trillion on the books All of these expectations represent unfunded liabilities: promises the government has made, but for which no provision to pay has been made Just as the bulk of the iceberg is below the waterline, the visible “national debt” is only the tip of the government liabilities And... Presidents and other elected officials pass the big stick around as a reward to those who help keep them in charge of the piñata party The American media plays the role of the party’s mariachi band, keeping festive spirits high And the people in their demographic and interest groups all line up to take a whack at the goodies America has become a piñata But the piñata does not survive the party It is . Gold CHAPTER FIVE - Inflation CHAPTER SIX - American Money SECTION III - WHAT HAPPENS NEXT CHAPTER SEVEN - How It Comes Down CHAPTER EIGHT - Toppling the Dollar CHAPTER NINE - The Authorities. his “they save too much” theory. This Ben, now the chairman of the Federal Reserve, and the rest of the Washington wizards know better than Ben Franklin. They would have the Chinese spend their. puts it all together: how the dollar meltdown happens, the most likely scenarios, the role of foreign creditors like China, and how the authorities will react to these problems of their own making.