The “global economy” seems to be awash in ‘liquidity”.  Three trillion plus dollars in the Asian sector alone, much of it owned by Japan and China, and a great portion of it denominated in USD. 

 

So what, you ask?

 

The only thing maintaining the value of that paper is the holders’ confidence in its value.  That confidence is eroding as this profligate regime in power in DC continues to drive it into the ground.  The result is too much paper money chasing too few opportunities for safe growth.  This money is coming back out of those national economies looking for a place to grow. 

 

This excessive ‘liquidity’ is a major element in the REAL loss of value of that USD in your pocket.  As just a single example, as I write this it takes $2.034 USD to by an English Pound Sterling.  Not too long ago it took only $1.80, and that had been the situation for decades.  The USD is weaker across the board as we travel further down the road mapped out by the powers that be, and that will continue as the global economy matures and the Great Global Leveling cascades over the Average American.

 

While the effect of this for US citizens is being masked for now by the flood of cheap goods from China, cheap services from India, and cheap illegal labor from Mexico, the cheapening of the USD will eventually erode your financial situation as a “global citizen”. 

 

For further reference consult these links:

 

The Rise and Fall of the American Middle Class: The Big Idea.

06/19/2006 - 10:38 AM

The Rise and Fall of the American Middle Class: A Faulty Foundation.

06/19/2006 - 8:28 PM

The Rise and Fall of the American Middle Class: The Seeds of Destruction.

06/20/2006 - 11:26 AM

The Rise and Fall of the American Middle Class: American Dream a Global Nightmare?

06/22/2006 - 9:50 AM

The Rise and Fall of the American Middle Class: Trading Places - the American dream for a third world Level Playing Field.

06/26/2006 - 2:53 PM

The Rise and Fall of the American Middle Class: Epilogue – A World View

07/03/2006 - 4:29 PM

 

The Confidence Game - Part 1

01/11/2006 - 11:19 AM

The Confidence Game - Part 2

01/11/2006 - 11:20 AM

The Confidence Game - Part 3

01/12/2006 - 11:25 AM