Too big to fail is a new phrase that was introduced last year. AIG was too big to fail. GM and Chrysler were too big to fail. Bear Sterns was not. Lehman Bros. was not. Merrill Lynch and Morgan Stanley were not. The formula for deciding what constitutes where the line is drawn is hazy.
In history the Roman Empire was not too big to fail. The British Empire was not too big to fail. The USSR was not too big to fail. While parts of all exist like Bear Sterns, Merrill, and Morgan, they are considerably smaller and not big factors anymore. Is America too big to fail?
Certainly, you have to be a pessimist or a cynic or Chicken Little to even consider America’s failure. America will go on. But, will it be more like the UK, Russia, Italy, or Merrill, a loser in Bank of America, than a world power?
When the Middle East, Russia, China, and France, how does France fit in this group?, meet secretly to discuss eliminating the dollar as the benchmark for oil by 2012, what does that mean? Does it mean the buzzards are circling our carcass? Does it mean we are all bark and no bite? Does it mean we have printed so many dollars that the world sees them becomming worthless? What does it mean for you, your kids, and your grand kids?
As the dollar keeps dropping and gold keeps going up, does that bode poorly for America? Will we have rampant inflation?
I don’t pretend to be smart enough to answer any of those questions. But, I will tell you this. If the dollar keeps dropping against the rest of the world’s currencies, it will take more and more to buy oil, since the price of oil will go up as the dollar goes down. Why did the countries that attended the secret meeting pick 2012? Some have lots of dollars. They need time to get rid of their dollars. If that’s the plan, and they dump dollars, will the dollar keep going down?
These countries have the clout to make the secret plan stick. They could make it happen sooner than 2012.
As we produce less and less oil here and import more and more, the damage the change would do to our economy is a serious concern. Others with currencies in that basket of currencies can buy more oil with fewer of their dollar equivalents. We, on the other hand, must spend more of our wealth on a relative basis to buy the oil we need.
I know, we are going to use alternative energy, not oil, to run out economy. If you believe this, you probably believe the 150 white-coated Obama supporters who came to the White House to represent the support of the doctors for health care reform, represent the entire population of doctors in America. How dumb does Obama think we are?
Pretty dumb, since he thinks we will raise the price of energy on our own volition with cap and trade at the same time the rest of the world plots to raise our prices even more by taking the dollar out of the purchase equation.
Stupid is as stupid does, to quote Forrest Gump, and right now America looks pretty stupid. Not yet to the point where the Saudis, the Chinese, the Russians and the French can meet in public to plan our downfall, but close. No stop to the spending. More spending, no cuts planned. More deficits, more dollars printed or loaned. No plans to stop what has the buzzards circling. Stupid is as stupid does.
