I´m officially on vacation, we just got to Mexico yesterday where we will be spending the next week with family. Getting here was not easy, there was lots of traffic, and a trip that usually takes us between 12-13 hours, yesterday took us 16 hours. We finally made it here around 8:30 pm And today my kids are excited palying with their cousins. As for me, I will be doing some reading, eating a lot, and trying to write more than I have. I will try to give my forecast for the next 6 months, that will be interesting. As I look back over my past predictions, I find some where I was very accurate and some others whare I completely missed it. All in all I can say I have been right more times than I have been wrong. This morning I was asked if President Bush brought upon the US the current financial crisis. My personal view is that perhaps Bush accelerated the inevitable. Bush did not really cause the current crisis per say. He did spend a lot in Iraq and Afganistan, but that is not the whole picture. The current crisis is a result of the US spending more than we eran and the rest of the world taking the dollar as a true currency as oppossed to fiat paper.
One of the things that I worry most about is the day when the US loses its reserve status, this may not happen overnight, and more than likely will be gradual, but as this happens, the future generations will be paying for our mistakes, I do feel sorry for them. Another fact is that the world cannot afford not to have a world currency, and none of the current candidates is likely to completely replace the dollar. My best guess is that the future will have to live with a basket of currencies, the vacuum being left by the dollar will have to be filled by the Yuan, the euro, and may be some other currency along with the dollar.
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