so it seems the US government is going to save us all from the bad investments of the few and/or the stupid or both.
What's going to happen?
- If you own a home, it seems your house value will be supported and propped up. This also helps the govt by soaking up all those dollars out there...this is a case of "dollars dollars everywhere and not a penny to lend...". The world is awash in us dollars but everyone is clinging to them because of fear.
- the next phase of fear will kick in and people will start scrambling to dump their dollars for gold. that's where this bubble leads next...'the bubble to end all bubbles' will be a bubble in gold prices. as investors, small and large, realize the us government is destroying the value of the dollar and in no way can every make good on their debts, there will be a flight to gold...thus driving up prices...
- housing prices will continue to skyrocket, but this time, not because people think they will get rich, but only because the dollar is plummeting. if you have a 30 year fixed mortgage, you'll be able to pay the house off in full with a few tokens of gold...
- the US will recover, but it will be about 5 to 10 years of recovery. the 'old-new value based economy' will be based on a gold standard again. this time leveraged with the efficiency of the Internet. think gold, PayPal and carbon credits (a whole new market will emerage) all combined...
- the plus of all of this lowering of the American quality of life is...the US will once again be a good value for manufacturing versus other places in the world. the US will be able to compete with China on labor costs and good manufacturing jobs will start returning to US shores. while Google is cool, it just doesn't doesn't generate jobs the way manufacturing wire hangers does...
