Global Confidence With US Dollar Very Likely Even More Shaken If Monetary Chaos Occurs

The US is on the brink of having exploited all its legislated credit capacity. There's a desperate need for a greater credit limit. Unless, by Friday, they've passed legislation to increase this, the government can't issue checks or even pay staff.
By: John Bear
 
March 4, 2011 - PRLog -- The United States, at this time, is on the brink of having utilized up all its legislated credit capacity. At $14.3 trillion there's a desperate need for a greater credit limit. Unless, by Friday, they've passed legislation to increase this, the government can't issue checks or even pay staff. Sure, they can use numerous tricks to delay this to cater to political brinkmanship, however the outside world will probably be alarmed that the federal government is unable to tend to such basics or permits politics to overrule finances. Here there's a clash of systems, the need for monetary correctness in opposition to the games political figures play. Visit http://silver-dollar-values.com for more silver and gold tips.

Having President Obama’s administration with out sufficient power to govern as they want at a crucial time when government ought to be powerful, there's little to stimulate confidence within the U.S. government. Global confidence within the U.S. dollar will probably be shaken if such a monetary mess were to occur. We would probably see the ratings organizations downgrade U.S. debt before that occurs.

Coming from outside it appears as though the U.S. is ignorant to foreign investor’s views at a time while the U.S. is reliant on foreign investors purchasing U.S. debt. CLICK HERE to check out Silver Dollar Values Silver Prices now! http://silver-dollar-values.net has all of the details for an intelligent investing choice.

Shifting down the hierarchy we have seen so much within the press that specific states are on the edge of bankruptcy and some currently are there and little appears to be being carried out to rectify concerns to date. Or perhaps should foreigners just believe that the Fed will save them with bailouts? If that's to be the path followed that once more will undermine foreign traders confidence within the dollar.

Just what needs to be recognized is that government financial situation at all levels need to be sound to encourage confidence? It appears to be a easy obvious statement, therefore why is it not really being applied? Also Fed Chairman Mr. Ben Bernanke is calling for the federal government to sort out the Government deficit but all we see is really a partisan battle that appears oblivious to their nations crying needs. Or perhaps do we do not understand the scene. Really are politics much more essential than good order? Visit http://silverdollar.cc for more silver and gold tips.

These days saw the revelation that China owns much more than $360 billion of Treasuries than was believed to be the case. Doesn't the federal government worry about this reliance? Is this the best time for you to invest in precious metals as a safe haven asset? Or perhaps does the government wish to make sure that the dollar gets weaker? This is really a powerful impression running through so many international exchanges right now.

And also the inflation originating from the food and energy worlds is internationally pervasive and capable of damaging what small economic growth there's within the developed world. It'll impact many, many nations and could arrive at the U.S. We do anticipate the U.K to encounter a shrinking of its GDP within the initial quarter of 2011 launching the arrival of a double-dip economic downturn, so shrinking expansion could also impact the U.S. even now with its lackluster overall economy. Exactly what will this relatively emasculated federal government do then?

As you can see, now is the time to buy gold coins and silver coins to get prepared for a not so bright future that lays ahead of us all. Buy silver today for a wise investment and bigger gains tomorrow.

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Source:John Bear
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