THE DEMISE OF THE DOLLAR

lets use California as an example. The state is bankrupt, tax revenues are down, spending is out of control. To remedy this, the state legislature has proposed raising taxes, implementing new taxes, and increasing spending.

The Federal government is doing the same, only in the Trillions of dollars. Massive new taxes proposed, massive new spending plans.

To finance this, they have been selling the debt mostly to China. And what the Chinese won't but, the Federal Reserve is simply printing money and buying it.

China, Russia, and most other Nations that have large sums of Dollar reserves have been talking about dumping the Dollar as the base world currency. Talk of using the IMF instead has come up recently. According to our government, everything is still sunshine and lollipops. Our Dear Leader is en route to Russia right now. Mr Putin said he will not receive his usual Rock Star reception. Our Dear Leader has made some remarks that have put Mr Putin off these last few weeks. But that is another story.

Monday and Tuesday the Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the six-nation Shanghai Cooperation Organization are holding meetings to discuss replacing the Dollar. Our Dear Leader, since he will be in country, asked to attend, and was denied.

China, Russia, India, Pakistan, Iran are forming an official financial and military area to get America out of Eurasia, and get away from the Dollar.

It is no secret that China has been trading its Treasury Bills, for IMF Bills. They have also been busy dumping their Dollar assets into gold mines in Africa, precious metals, and other tangible commodities.

If these countries decide to drop the Dollar, it will be economic Armageddon for the USA. The Dollar will be virtually worthless. Inflation of the likes never seen here will hit. Gasoline, and all imported good will skyrocket. The economic mess we have been experiencing will look like great year in comparison.

Our Dear Leader, smug as he is, will not receive a very sympathetic ear in Putin. The EU warned Our Dear Leader that his spending plans will lead to a global disaster. Instead of heading their advice, he tried to convince then to follow his plan. The world is not as impressed with Our Dear Leader as the folks at home are. They see him as weak and inexperienced. And following a path of economic disaster. Since they all have large amounts of US Treasury Bills and dollars, it is in their best interest for our government to wake up and smell the coffee.

Instead, they are seeing more spending, and more printing of money. Which only devalues their holdings more. And they want out. This week could be the first step in the collapse of the Dollar.

There is a rumor going around that the State Department has sent a years supply of cash to all the foreign embassies. They are rumored to have been instructed to buy a years supply of local currency and hold on to it.

Thursday 7 more banks were seized.

GM's asset sale was also approved. The assets will be sold to a company, which is using money from the Treasury to buy them. Details are scant. This may be the company the Government set up to handle it's 72% interest in the auto company.