Best post on why america will keep on moving forward....
I loved this!from the PBR board:
We've swapped our IOU's for real things from foreign countries like oil, cars, clothing, electronics. We've received real things which are useful and we can enjoy and they've received our IOU's ( dollars, treasury bonds ). Who has gotten the most utility from that trade ? We have, of course.
Dollars and treasury securities have little or no intrinsic value. Their value comes only from what real things they can ultimately be traded. When the US prints money or issues treasuries, the best thing we can hope for is to never have them redeemed giving us the proverbial something for nothing. When they are redeemed here jobs are created from the economic activity of spending the money. The overseas debt is going to be a huge blessing for the US when those dollars are repatriated. The consensus opinion now is that the debt is something to worry about but it is NOT. The ones who need to worry are the foreigners holding our IOU's.
Think about it this way. Would it be a good deal if you never had to work again and could buy anything you wanted by simply writing an IOU ? And if some of your IOU's were interest bearing you could pay that interest by writing more IOU's ? This is what we have done collectively as a country. The world will not let us get away with this indefinitely just as an individual could not get away with it indefinitely. Eventually the holders of IOU's will want something useful in return and we must either work or provide something of tangible value to retire those dollars and treasuries.
TO THAT i ADD I THINK A COUNTRIES MILITARY MIGHT IS RESPONSIBLE FOR 50% OF THEIR CURRENCY VALUE. IF HAITI OR ZIMBABWE SUDDENLY DEVELOPED A NUCLEAR BOMB....you'd see their currency rise very quicky. Oh Jesus, I better be quiet before someone figures that out. Anyway, great post! Anyone agree?
vickie, why not? This post proves exactly why america is still on top. We have one other thing no one else has I forgot to mention. Its worth more than all the gold(you cant eat it anyway) in the world:INTELLECTUAL POWER AND FORWARD THINKING. It will be a while before anyone catches up to us on that. I mean look at france, i luv the french, god bless em, but they still have people putting swastikas on synagogues and they still think so little of us americans...and they are the best europe has in some ways! Nope...it was a great post.