Is the U.S. playing with fire with the “Value of the Dollar” on the world stage with all the fist fights in Congress?
Since the U.S. officially stopped putting a dollar worth of gold behind every dollar printed back in the 1930’s, the U.S. basically told the world, in so many words, we’re the big boy on the block – what we say goes! Even without the gold backing.” And it’s worked pretty well ever since.
But a well respected news service, Reuters, based out of London, has been asking, in light of frequent street fights in the U.S. Congress, “what happens when the U.S. becomes ungovernable…and doubt is raised about whether it will be politically stable enough to keep paying its bills on time?” The implications are enormous for interest rates, employment, trade balances, etc.
Reuters dares to ask the question. The answer seems to be, the U.S. is “okay for now.” But the discussion shows there’s a growing number of chinks in the U.S. armor as long as the Congress battles on over “political philosophy” rather than “political solutions.” Click here.
In a supplemental article, world financial leaders are scratching their heads and worrying out loud about the behavior of the U.S. Congress, some members of which appear to ransom the country over our quality of health care and specifics about a debt reduction debate. The world financial centers seem to be sincerely frightened about the brutal drama still playing out in the U.S. Congress. Click here.