We sure don't want to greatly undercut the value of the dollar and that is a real risk here.

You have some catching up to do, Danni. The Fed has done nothing BUT undercut the value of the dollar. Approximately 98% since its existence.

It's the greatest Ponzi Scheme in the history of finance. It requires a continuous stream of new debt to come into the system to pay off the old debt (principle plus interest). As such, it's mathematically impossible to sustain indefinitely. The American debt ridden economy finally hit that wall.

Department of Meaningless Statistics

Why is that?

FYI

"Foreigners have sold a net $38.9 billion of US bonds and equities in the last 12 months. Foreign Central banks have sold $14.7 billion of US investments in the last 12 months. We will be issuing $1 trillion of debt in the next year. If foreigners are selling, who will buy the debt? No one. The Federal Reserve will have to monetize the debt."

Monetization means the Fed writes a check to pay for the bonds and deposits it in Treasury's account. That would be like me becoming a millionaire by writing a check to myself for a million dollars.

It means inflation ahead and a further drop in the dollar.

You mean before the Mexican-American War or the Spanish American War

They didn't bankrupt the country, but the Spanish-American War marked America's transition to foreign wars. The brutal suppression of the Philippines gave the American military machine a foothold in Asia.

With the unconstitutional authority to create money by merely writing checks, the Federal Reserve can finance government deficits of any size. The accumulation of new money is the direct cause of the price inflation we are familiar with since the 70s. Understand that inflation is a hidden tax on your savings. It is what has allowed government deficit spending to go unchecked.

As history teaches, inflation destroys the value of currency. It's a gradual erosion process that has lasted in our case almost a hundred years. But make no mistake. Every country that started this fraudulent practice, could not stop until its currency became worthless.

The sooner you prepare for it, the easier you'll whether the dollar crises to come.

Lip

You don't want to be wrong about this. The fact is that wages have been falling behind the cost of living since the 70s. Consumers tried to make up the difference with debt, which only increased their debt load. Now we're seening an acceleration of bankruptcies and foreclosures.

Americans are being crushed in a vice between falling asset values, falling wages and rising commodity costs. The middle class is shrinking.

Inflation can't go to unfinity. No economy can function under the conditions you describe. I don't know what the bottom will look like, but I know that the sooner one trades paper assets for tangible assets, he'll some something of value to buy food with when the masses have nothing.

Rationalize all you want. I know my history. It might do you well to investigate on your own. There is a wealth of material on the web.

Danni - There are people who reach a stage in life where they are incapable of learning abstract knowledge. Usually, it stops with formal education. When learning stops, they repeat the same nonsense like a parrot, despite contrary evidence. You are one of those kind. There is no point in repeating what I've told you countless times before.

What I said to Danni applies to Nulli too.

This has nothing to do with Mises. It's basic high school accounting. The federal government has been accumulating debts since the Civil War. Now they are impossible to pay off. America is broke, busted, insolvent, bankrupt. There isn't enough money in the world to pay our debts. How many ways do I have to say it? Don't argue with me or Mises. Argue with the math.

Go back to Von Mises and get some more nonsense for your game of monopoly or whatever it is you play and leave the real world economy to those who understand that ideologies like Austrian economics would create the longest and deepest depression in history.

Just so we are clear. When we get to the longest depression in history, you won't be able to blame Austrian Theory.

Just so we are clear Ray, I've know people who spout the same nonsense you do most of my life.
When do you start the rants about Jewish bankers scheming to take over the world???

As history demonstrates, nations are run by psychopaths of all nationalities, races and religions.

Danni and Nulli think they are above this. But for those interested in understanding the mathematics of debt, Dr. Bartlett explains the exponential function in an eight part series on YouTube.

It will give you an idea of what to expect from the insanity of the feds trying to borrow and spend their way out of a problem caused by too much borrowing and spending.

Here Danni. Another excellent presentation for you to ignore.