FINANCIAL BUZZ | The Dollar – Part IV

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The Dollar – Part IV

By Barrio Bee

 

As long as foreign countries accept the dollar as a medium of exchange,

The U.S. comes out ahead – a benefit Congress fails to recognize.

Bashing China for the positive trade balance with the U.S.–

Leads to a loss of manufacturing jobs to overseas markets.

The U.S. becomes more dependent on others and less self-sufficient.

Foreign countries accumulate U.S. dollars due to its high savings rates;

Then loan it back to us at low interest rates–

To finance excessive consumption.

Alas…  We have the advent of dollar deficit…

 

The “black gold” standard provided tremendous artificial strength,

Creating a universal demand for the dollar.

The artificial demand, along with our military might,

Placed us in the position to “rule” the world–

Without productive work or savings…

And without limits on consumer spending or deficits.

Unfortunately, it can’t last…  But everything possible will be done–

To protect the shared interest with those who hold our dollars.

Alas…  We have the advent of dollar charade…

 

In his first speech after leaving the Fed,

Greenspan stated gold prices were up due to terrorism concerns.

Not because of monetary reasons…

Or because he created too many dollars.

As such, gold has to be discredited and the dollar propped up–

Even when the dollar comes under serious attack by market forces…

International central banks will do everything conceivable;

To soak up the dollars in hope of reestablishing stability…

Alas…  We have the advent of dollar restoration…

 

The time will come when the dollar — due to depreciation –

Will be received less enthusiastically

Or even rejected by foreign countries.

That would force us to pay a price for living beyond our production…

Most importantly, the dollar/oil relationship has to be maintained–

To keep the dollar as a preeminent currency…

Any attack on this relationship will be forcefully challenged

As it already has been…

Alas…  We have the advent of dollar beware…

 

Next month…  The Dollar – Part V…