The United States is in the throes of crushing debt, politicians are not doing a good job at all reducing the amount money the government is spending and the national debt only increases day by day.
Increasingly, the unhealthy growth of the American Government borrowing dollars and spending even more dollars has only helped fuel the fire which has been creating instability for the US dollar through increased debt. However, there are other reasons for the occurrence of our current crisis and why the US dollar has been noticed “tanking” by many financial experts. All of the reasons, they said, are actually caused by both the government and the central bank itself.
Big corporate America loves a cheaper dollar, since cheaper dollars transform into greater overseas profits then subsequently transform into even more American dollars. The more American companies make, the higher their stock prices climb and the happier the stockholder’s become. For this reason, stock markets also love cheaper dollars.
However there has to be a balance between the dollar’s price being either too high or too low. The reason being if the US dollar drops too low, foreign investors would be less interested in buying the United States backed US Treasury bonds. America sells these bonds to whoever will buy them, because the US Government desperately needs the revenue for financing its own ever increasing national debt. This type of a situation can best be referred to as “too much of a good thing will kill you”.
The U.S. dropped interest rates back in 2004 to the lowest levels ever seen in 46 years. At that point Americans had access to lots of “easy money”. They borrowed this money and they were able to borrow it very cheap. People financed as much money as they possibly could and then stuffed it into real estate. Looking back on this, it was due to the Federal Reserve’s actions of dropping the interest rate to an all time low, which attracted vast amounts of consumers to borrow more than they could possibly afford. This action from the Federal Reserve now can be seen as what actually created the housing and banking crisis to begin with. This decision will have been regarded as one of the most costly errors the Federal Reserve or any other central bank has made in the past 75 years.
Regardless of any looming crisis as an investor, you can safe guard your assets and still profit, in spite of the predicted dollar crash. First you must lessen your risk in today's weakest currency - the US dollar. You should buy and hold physical gold & silver and keep it outside the world’s banking systems. Where you and you alone have complete control over it, and because gold and silver are true stores of value. During times of uncertainty and regardless of any economic conditions these precious metals have always maintained their true value throughout history.
Tom Genot -
About The Author:
For informational, news, articles and videos for investing in gold and silver and where the best places are to buy it. You will also find information for preparing and protecting you, your family and your assets from the pending economic crises and destruction of the US dollar. Author Tom Genot, provides information and resources helpful to everyone. Insure you’re prepared beforehand. Check us out at www.coinbullion.net
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