Capitol Hill Blue Forums Political Issues Finance, the economy & Economics How will the financial crisis develop?

Already there is evidence of central banks and individuals moving out of dollars into gold and silver bullion and into other currencies of countries that are not hemorrhaging debt and money....The world is abandoning the use of the dollar to settle international accounts, and the demand for dollars is falling as the Federal Reserve increases the supply of dollars....
...the Federal Reserve can create new money with which to purchase the dumped financial instruments, thus maintaining their prices. [b]But the Federal Reserve cannot print gold or foreign currencies with which to buy up the dollars that foreigners are paid for their US stocks and bonds. When the dollars in turn are dumped, the exchange value of the dollar will collapse, and US inflation will explode.

For a number of years I have pointed out that the problem is the loss of US employment, consumer income, GDP, and tax base to offshoring. The solution is to reverse the outward flow of jobs and to bring them back to the US...by taxing corporations according to where they add value to their product. If the value is added abroad, corporations would have a high tax rate. If they add value domestically with US labor, they would face a low tax rate....
The second part to the solution is to end the expensive unfunded wars that have ruined the federal budget for the past 11 years....
No one in the White House and no more than one dozen members of the 535 member US Congress represent the American people. This is the reason that, despite obvious remedies, nothing can be done. America is going to crash big time.
And the rest of the world will be thankful. America along with Israel is the world's most hated country. Don't expect any foreign bailouts of the failed "superpower."