The United States needs to borrow nearly $10 trillion over the next decade, including about $1.6 trillion this year.
Where's it going to come from?
This is critical question, because resistance on the part of creditors will drive up interest rates, clobbering the housing market and demolishing the value of whatever cash savings Americans have left. The other answer--our government lending the money to itself--will destroy the value of the dollar, and that wouldn't help too many people, either (except debtors--it would help debtors because they will be able to repay nominal debts with toilet-paper dollars.
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Zimbabwe proposes introduction of gold-backed Zim dollar
Zimbabwe’s central bank governor Gideon Gono on Thursday proposed the introduction of a gold-backed local currency, which was destroyed by hyperinflation and replaced by multiple foreign currencies in January.
LINK HERE
One zimbabwe dollar is worth 1 atom of gold.
ReplyDeleteHard to believe they were nearly worth an American dollar in the 80s.
ReplyDeleteAn atom of gold is .1441 millionth of a milimeter!
ReplyDeleteHow could someone that small even be accounted for at all?
So, if you live in Zimbabwe and have gold coins are you called Lord or what?
Does anyone really believe the US budget deficit in the coming years will be reduced to $ 1 trillion a year ?
ReplyDelete