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#30
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[ QUOTE ] The currency issue is a lot bigger than most people realize. The world cannot continue to finance our debt indefinitely. The US has run a trade (and government spending) deficit for many years in a row. At some point our creditors are going to want to be paid back ending the credit bubble we are in now. [ QUOTE ] Eg staying on the gold standard would have held back the economic growth that has occurred since it was abandoned. [/ QUOTE ] This is not true. While the economy has exploded since that time, a lot of the gains are due to inflation, and are not real. My generation is expected to earn less than my parents (baby boomer) in real terms. More of the gains have come from borrowing money, like the trade deficit that continues every year. If I give you a new credit card with a high limit each year, you are going to be able to buy a lot of stuff. At some point however, you are going to have trouble making those minimum payments. Then the credit cards are going to stop coming in the mail. When that happens, the assets you thought you had are going to have to go back to the bank. [/ QUOTE ] People who devoted their lives to economics, and are a hell of a lot more intelligent than you or I made the decision to change and understand the consequences and benefits of it. [/ QUOTE ] You're assuming that the guys that made these decisions have you're interests in mind. Not to mention it's nothing but a naked appeal to authority. |
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