Comments on: Rosenberg: The U.S. dollar could be next http://www.creditwritedowns.com/2009/07/rosenberg-the-u-s-dollar-could-be-next.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Attitude_Check http://www.creditwritedowns.com/2009/07/rosenberg-the-u-s-dollar-could-be-next.html#comment-56752 Attitude_Check Fri, 17 Jul 2009 18:47:00 +0000 http://www.creditwritedowns.com/2009/07/rosenberg-the-u-s-dollar-could-be-next.html#comment-56752 A devalued $ is exactly what we need. We have had on over-valued $ for at least 30 years, propped up through the joint action of the US Fed and other Central banks, that hold much of the US external debt. That has resulted in it being cheaper to make cheap platic pots in China, and ship them across the Pacific, than make domestically. This has resulted in the death of US-based manufacturing and the resulting explosion in the US trade deficit. It is clearly unsustatinable to have large trade imbalances, that are financed by foriegn borowing. EVENTUALLY you have to pay it back - or default. We are now choosing default through $ devaluation, but at least it will rebalance the world economy and trade flows. It WILL BE IMMENSELY painfull however. Only one thing to do in the short term -- buy Gold/Silver, and after the devaluation invest in domestic US manufacturing. A devalued $ is exactly what we need. We have had on over-valued $ for at least 30 years, propped up through the joint action of the US Fed and other Central banks, that hold much of the US external debt. That has resulted in it being cheaper to make cheap platic pots in China, and ship them across the Pacific, than make domestically. This has resulted in the death of US-based manufacturing and the resulting explosion in the US trade deficit. It is clearly unsustatinable to have large trade imbalances, that are financed by foriegn borowing. EVENTUALLY you have to pay it back – or default. We are now choosing default through $ devaluation, but at least it will rebalance the world economy and trade flows. It WILL BE IMMENSELY painfull however.

Only one thing to do in the short term — buy Gold/Silver, and after the devaluation invest in domestic US manufacturing.

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