The Dollar versus the World

There is this video making the rounds of the internet under the site endofAmerica by an analyst who claims to have predicted the crash of 2008. He claims the calamity that is coming is not a military one but will be tied to our crushing national debt and the eventual loss of the United States dollar as the worlds currency.

As a person who does not understand the world economic situation it was interesting to see the video describing that the United States big advantage is that to purchase products for import such as oil from the Middle East. This is because the United States does not need to exchange its currency to purchase these imported products.

The fear is that at some point our creditors will not accept our dollars as payment. When this happens we could hit a period of inflation that we cannot even imagine. The comparison is with the British governments defaults of the late sixties into the seventies.

I do not know if this is true. I do know that debt we have and continue to incur is not something that can be kept up. The battle in Washington now is over what do we cut. The polarization of the country is between right and left, rich and poor, and on and on we go.

I do believe there is an economic crisis coming. I am unsure how we prepare ourselves. There is no leadership in Washington that I trust.