Thread: Prepare For Dollar Collapse, Warns Ex-Bank Of England Policy

Some words of encouragement from London. NOT.



Prepare for Dollar Collapse, Warns Ex-Bank of England Policymaker


January 8, 2009 | From theTrumpet.com
After years of unabashed and reckless borrowing, the chickens are coming home to roost.

Americans must ready themselves for a massive devaluation in the dollar as international investors dump their U.S. assets, says a former Bank of England policymaker. Relying on the kindness of foreigners to finance our standard of living may be about to be revealed as irresponsible folly.

The assumption in modern economics that U.S. government bonds are virtually risk-free investments will soon be relegated to myth as investors lose patience with the world’s biggest economy, according to Willem Buiter.

Disenchanted foreign creditors may be about to head for the exits as proposed “borrow and spend your way out of recessionâ€

What the dollar devaluation will do: make foreign goods and services more expensive. This has a serious silver lining, more than one in fact.

1. It will force us to get serious about lessening our dependence on foreign energy. We keep talking, talking, talking about this. It needs to happen.

2. It will force us to buy, hire, and make things locally instead of globally. How is that not a good thing, after witnessing the mass exodus of manufacturing and jobs at all levels to foreigners?

One thing that has made outsourcing and offshoring so attractive is the exchange rate. Foreign workers can be paid what would seem like pocket change to us, and live spendidly on it.

1. It will force us to get serious about lessening our dependence on foreign energy. We keep talking, talking, talking about this. It needs to happen.

2. It will force us to buy, hire, and make things locally instead of globally. How is that not a good thing, after witnessing the mass exodus of manufacturing and jobs at all levels to foreigners?

Well, it makes perfect sense. Anyone with a logical mind can see that. Unfortunatly they aren't the ones holding the strings in this "global world".

It definately NEEDS to happen if we are to survive as a nation......that's the issue, there are powers that be who don't want us to do that.

Originally Posted by crazybird

1. It will force us to get serious about lessening our dependence on foreign energy. We keep talking, talking, talking about this. It needs to happen.

2. It will force us to buy, hire, and make things locally instead of globally. How is that not a good thing, after witnessing the mass exodus of manufacturing and jobs at all levels to foreigners?

Well, it makes perfect sense. Anyone with a logical mind can see that. Unfortunatly they aren't the ones holding the strings in this "global world".

It definately NEEDS to happen if we are to survive as a nation......that's the issue, there are powers that be who don't want us to do that.

Yes, it does make perfect sense. But, as CB points out, there are those who don't WANT that and they are presently calling the shots with We the People having been reduced to nothing more than We the Little People.

Until that changes, nothing else will change. And, in the current state of affairs where everything has gone so far at this point that nothing short of a miracle, could turn it around, it isn't going to change until there IS a collapse of some sort.

When whatever that collapse is, does happen, it's then that the American people will be able to start all over and rebuild.

Originally Posted by BetsyRoss

What the dollar devaluation will do: make foreign goods and services more expensive. This has a serious silver lining, more than one in fact.

1. It will force us to get serious about lessening our dependence on foreign energy. We keep talking, talking, talking about this. It needs to happen.

2. It will force us to buy, hire, and make things locally instead of globally. How is that not a good thing, after witnessing the mass exodus of manufacturing and jobs at all levels to foreigners?

One thing that has made outsourcing and offshoring so attractive is the exchange rate. Foreign workers can be paid what would seem like pocket change to us, and live spendidly on it.

If Obama was serious about energy independence, he would propose switching to a Hydrogen based Economy, which would create jobs in every field there is. But you'll never see it because of the Oil industries death grip on washington. The main source of America's weath has always
been its Industrial might, until that returns, there will be no recovery. UnFair Trade Policies. Illegal Immigration, Out-Sourcing Industry, etc are destroying america, and Obama is ignoring these major issues. There will be no change just more of the same.

Originally Posted by BetsyRoss

What the dollar devaluation will do: make foreign goods and services more expensive. This has a serious silver lining, more than one in fact.

Thus eliciting increasing protectionism.

Originally Posted by Reciprocity

If Obama was serious about energy independence, he would propose switching to a Hydrogen based Economy, which would create jobs in every field there is. But you'll never see it because of the Oil industries death grip on washington.

We will never see alternative fuel until Big Oil makes the decision to allow the transition, but only after they have implemented complete and total control over the new source(s) of energy and its profits.

Originally Posted by carolinamtnwoman

Originally Posted by BetsyRoss

What the dollar devaluation will do: make foreign goods and services more expensive. This has a serious silver lining, more than one in fact.

Thus eliciting increasing protectionism.

Which all the other countries have been doing all along, with a straight face, even as they yammered to the WTO about us, trying to break our doors down even more than they already were.

Originally Posted by carolinamtnwoman

Originally Posted by Reciprocity

If Obama was serious about energy independence, he would propose switching to a Hydrogen based Economy, which would create jobs in every field there is. But you'll never see it because of the Oil industries death grip on washington.

We will never see alternative fuel until Big Oil makes the decision to allow the transition, but only after they have implemented complete and total control over the new source(s) of energy and its profits.

The problem is the immense cost of Hydrogen based infrastructure and re tooling. The Oil Companies have billions invested in oil infrastructure, refineries, tankers, etc plus econmic ties to OPEC.

http://en.wikipedia.org/wiki/Hydrogen_economy