The US dollar in 10 years

What will the dollar be like in 10 years? Has the dollar finally fallen off the precipice of sound economic policy?

Will one stimulus package lead to another stimulus package? Will the real crisis break out before 10 years? As the fiscal deficit increases, interest payments on public debt increase. This leads to the government trying to inflate its way out of a business cycle. This has created an increase in the price of precious metals. Simultaneously, this has caused a reduction in the purchasing power of the dollar bill.

The longer the Federal Reserve keeps interest rates low, the greater the devaluation of the amount of money in circulation.

The US national debt is currently over $12 trillion. If the US economy were a publicly traded company, the value of its shares would be zero. The United States government estimates a debt of nine trillion dollars in the next 10 years. So what is the real intention of policymakers to stabilize the dollar?

Economists have long stated that inflation is not caused by price increases agreed upon by manufacturers, but simply by an oversupply of dollars. At what point will the government determine that the fall of the dollar turns into a defeat and the dollar returns to its intrinsic value? So what are the contingency plans for the government if the dollar collapses? If the dollar collapses, it will be too late. Actions must be taken now to restore confidence in the dollar. It is easier to correctly manage a growing crisis than to repair deep damage.

So who currently controls the currency of the United States? In a CSPAN broadcast, Federal Reserve Chairman Ben Bernanke was asked about monetary policy. President Bernanke declared that the US should reduce its budget deficit to reduce global imbalances. The problem is that our budget deficits have developed because the government has monetized our public spending. It is not unforeseeable that in 10 years up to 50 percent of tax revenues will be used to pay interest on the public debt.

The United States currently controls the state as the world currency. However, the world is further and further away from the dollar as the world currency. Our biggest import today is inflation, as the government continues to print more and more dollars. Recent reports indicate that foreign central banks are putting more than their new cash purchases into euros and yen. As more central banks diversify from dollars into gold, our economy continues to weaken below the surface.

The government-mandated cash-for-scrap program caused an increase in gross domestic product. After the stock market crash, the US savings rate peaked at 6.2 percent. The economic gains from the cash-for-scrap program were brief and also added to the cycle of long-term debt and interest payments. This program looked good as a quick fix, but it has long-term ramifications.

The national debt is growing three times faster than it was decades ago. So should we expect minimum inflation to be three times faster than it was decades ago? As the banks begin to lend out their reserves exceeding the $860 million in excess reserves, price inflation will rise to levels higher than the interest charged by the banks. The trend of accelerating debt growth is likely to continue and the next doubling of our debt could occur within the next five years. Be conscious. Long life and prosperity.