Pretty ironic, in a very mixed-metaphorish sort of way, that on the day that the wearin' o' the green is celebrated around the world, it's also treated to further insults to the dollar — once referred to as greenbacks
, though less so these days as the USSA moneycrats play with our money's appearance as well as its value. Another bad day for the dollar ..., and who's surprised?
The dollar continued to fall yesterday and overnight with the euro and yen both headed for the biggest weekly gain of this year. The dollar fell 2.3% against the yen and 2.2% versus the euro so far this week after reports continue to show a slowing U.S. economy.
Driving home last night, I heard that our congress had taken steps to deal with the deficits that are piling up. THEY VOTED TO RAISE THE DEBT CEILING!! .... I guarantee these debts that continue to pile up will eventually drive down the value of the US$.
You think? After all, the vermin didn't just vote to raise the debt ceiling, but also approved an extravagant budget, as the Boston Globe reports:
Congress raised the limit on the federal government's borrowing by $781 billion yesterday, and then lawmakers voted to spend more than $100 billion on the war in Iraq, hurricane relief, education, healthcare, transportation, and heating assistance for the poor without making offsetting budget cuts.
On vote after vote in the House and Senate, lawmakers demonstrated the growing gap between their political promises to rein in spending and their need to respond to emergencies and protect politically popular programs. The votes followed last weekend's GOP leadership meeting in Memphis, where virtually every speaker called on the party to renew its commitment to fiscal discipline and to control federal spending and the deficit.
Nothing new there; we've seen all that before. The article continues (all emphasis mine):
With no brakes on spending and no moves afoot to raise taxes, the federal debt is now rising at an unprecedented clip. The government bumped up against its $8.18 trillion statutory debt ceiling last month, forcing the Treasury to borrow from employee pension funds to keep the government operating. After weeks of pleading from Treasury Secretary John Snow, the Senate took the politically unpalatable but economically critical step yesterday of raising the ceiling for borrowing to $8.96 trillion. Under House rules, the debt limit was raised last year without a vote when lawmakers approved a budget.
It was the fourth debt-ceiling increase in the past five years, following $450 billion in 2002, a record $984 billion in 2003, and $800 billion in 2004. The statutory debt limit has now risen by more than $3 trillion since Bush took office.
And let's not forget that the moneycrats are no longer reporting M3 — what our money supply is. Anyone not think the printing presses are red-hot yet? That also pushes the value of the dollar down. If you're interested in a little historical exploration of the dollar's value, check out How Much is that Worth Today?, a nifty utility I featured a while back in my Salon. Here's a calculation I did:
$440.71 in the year 2005 has the same "purchase power" as $20 in the year 1905
How much worse can it get? Strap yourself in and hang on tight, because I think we're about to take that roller coaster ride.
Someone on an email discussion list recently advanced the argument that the USSA dollar not being backed by gold wasn't such a bad thing, because it is backed by something else that's of real value: real estate. He didn't mean the hyped real estate market; he said, ... real assets that are mortgaged in dollars
. I nearly fell out of my chair laughing.
I know I'm not a star economics scholar, but I can't help but keep wondering why those types in this country keep picking on Iceland. Yes, there are different circumstances for their krona and the USSA dollar, but, hello? Pot, kettle here?
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