Monday, March 1, 2010

Heading For Collapse

Financial author Jim Davidson says the dollar, the economy, and the stock market are headed for collapse. In an interview with Newsmax.TV, Davidson, who is a member of the Newsmax board of directors, elucidated the ideas of a recent book, titled “Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown.”The book — written by David Wiedemer, Robert Wiedemer, and Cindy Spitzer — states that two big bubbles have yet to burst: the dollar and $12.3 trillion in government debt. “Look out below when they pop,” says Davidson, a columnist for Newsmax’s flagship financial newsletter, Financial Intelligence Report.The dollar index has slipped 17 percent since Obama took office. The White House and Federal Reserve seek a weaker dollar partly to boost exports.But they also want to see the currency drop so that it becomes cheaper to pay back our debt.“It’s a delicate balancing act where they’re trying to weaken the dollar just enough to make the burden lighter, but not so much as to make the dollar go ‘poof,’” Davidson said.But the strategy won’t work, he believes. “Any time the government prints money, it’s a threat to the people who produce wealth in the society,” Davidson points out. “The history of the world is that you don’t become rich by printing money. Otherwise Zimbabwe would be the richest country on earth.”Our debt burden will ultimately collapse due to hyperinflation, he says. The “Aftershock” authors say we’re headed for a crisis because we aren’t going to pay back the debt, Davidson explains.“We have made no effort to pay it back, and there’s no plan to pay it back,” he said. As for President Obama’s partial spending freeze, “It’s sort of like partial pregnancy,” Davidson says. “It’s not significant in the scheme of things. We’re avoiding the tough choices that are eventually going to be forced on us when we have no other options.”

The above report by Dan Weil of Moneynews is pretty shocking. Please read it open-mindedly for your own benefits.

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