The Dollar
Since America abandoned the Gold Standard it has been free to print as much
fiat money as it likes. The party lasted for considerable time but excessive
greed means it is now coming to an end.
The Federal Reserve Bank (FED) has been busy printing billions to bail out companies and banks that have been deemed 'too big to fail.' This mad printing spree has been named the sterile, 'Quantative Easing'. But make no mistake, printing money leads to one thing only, inflation, and printing massive amounts of the stuff leads to massive inflation. Watch out people!
Inflation eats your savings and causes people to spend. It reduces the value of the dollar and therefore reduces your purchasing power. On such a massive scale it invites 'questions' form overseas countries. Such is the scale of it that as of October 2009, other countries (Russia, China, Middle East) are beginning to make agreements about using their own currencies instead of dollars for international exchange, and especially for oil. If, or rather, when this happens, the dollar will lose value rapidly as people will no longer want it or need it.
This dire state of affairs has seen calls for the abolishment of the FED and for the return of the Gold Standard, but such is the amount of American debt that it is simply a case of closing the gate after the horse as bolted - it is too late. The dollar is dying and we are watching the end of the American Empire. Will it die slowly, or will it thrust a new War upon us to distract us, as is so common when empires wane? All we can do is wait and see. Pleasant times await us not.
Check out Peter Schiff on You-Tube and how he equates the true value of dollar denominated values on the Dow Jones Index to Gold. The Dow may be rising, but gold is rising faster, which means your purchasing power - true wealth - is decreasing.