Dollar Strength Temporary: Is it a Result of Record Debt ?


Amazing what a week will do—apparently, the dollar is much more valuable today. But in reality, this temporary dollar strength can not be predicated on the U.S. advancing in the accumulation of the largest debt in the history of the world. To those with common sense, an unsustainable debt is obviously a problem—but for some, an ever-expanding debt isn’t a problem—it’s a reason to celebrate.
The reason it is not a problem, from the perspective of a select few, is that without an ever increasing debt, we have monetary deflation (The nemesis of those who conjure currency) causing institutional insolvency and bank failures. Stop-gap measures such as suspension of mark-to-market accounting and GAAP standards helps in the short run. But debt expansion and a larger supply of currency is the solution.

This is why you see the “two-party system” both perpetuate large debt expenditures, such as socialized healthcare, the welfare state and war.

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