In Jim Cook's Archive


This country frequently acts like it doesn’t care if the dollar is the world’s reserve currency. Our government keeps spending like there is no tomorrow. That spending contributes to the inflation that erodes the dollar’s purchasing power. If our inflation gets out of control, people around the world may stop using dollars. Our enemies (and some of our friends) are trying to establish a competing reserve currency. If they are successful to the point where international trade switches to the use of a competing currency, our dollar will lose value to the point that prices for goods in the U.S. will double and triple. A weak dollar will buy very little. Our politicians don’t seem to realize the damage that’s possible if they keep spending so recklessly.

What are we spending to make the millions of illegal immigrants comfortable? What are we going to spend trying to save the world from global warming? What are we already spending on social welfare and subsidies for everything under the sun? What are we going to spend on the Russian war and what are we going to have to spend on defense now that we are up against newly aggressive dictatorships? The trouble with our dollar is that there is no brake on printing it. Fiat money is conjured up out of thin air, so that allows the politicians to greatly abuse their spending privilege and risk the demise of the dollar. This is how nations fail.


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