People must understand when our government spends money we don't have, we have to sell bonds to raise the money. The more money we need to raise, the lower value our dollar becomes around the world. All commodities, from oil to corn, will have a higher price because the dollar isn't worth as much.
We can't continue to spend money we don't have. Our national credit cards are maxed out.
Let's not forget, that as we go through this financial crisis, our country is in the middle of the first of many crisis we face. My earlier post from August, The Economic Challenges, explains all of the other problems on the horizon.
The value of the dollar is going to sink further as we start to address these other problems in the next two years. I believe the increased personal debt/foreclosure and unemployment crisis is going to be rearing their head soon as we tackle how to get the economy moving again.
The worst way to address this problem is to finance an economic recovery by using debt. If we have learned nothing else from Fannie Mae, we should have learned we can't keep pushing debt into the future and taking profits today.
But that is exactly what we are going to be asked to do.
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