The US Gov’t Has Created A Huge Illusion That May Soon Explode And Cost Citizens Billions

Wednesday, January 28, 2015
By Paul Martin

This could mean economic disaster for millions of Americans.

L. Todd Wood
WesternJournalism.com
January 28, 2015

Why do Russians and Ukrainians line up around the block to exchange their own currency for dollars? What about Venezuelans? They will pay almost anything on the black market to get dollars for their almost worthless bolivars.

The reason they will do such things is that they believe the U.S. Dollar is worth something. Unfortunately, that is the only thing the dollar has going for it: that people think it is worth something.

Right now, most of the world is going to hell in a handbasket. The Russian economy is crashing, China is sitting on a massive loan bubble, Europe is stagnating and possibly entering a depression, and terrorism is threatening the very fabric of life that the West has enjoyed since the end of World War II. Right now, the U.S. dollar is the cleanest shirt in the dirty pile.

So people are buying dollars, lots of them. The geopolitical uncertainty has caused a massive “flight to quality” in international markets. This has pushed the value of the dollar higher.

The concept is simple: if everybody wants something, the value gets moved to the upside. It’s simple supply and demand.

Another factor is that commodities, especially oil, tend to move in negative correlation to the dollar. So as the price for crude has fallen off the cliff, the value of the dollar has moved higher in the opposite direction. But oil can only go down so far; and eventually, international crises get resolved.

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