muses of the moment

January 10, 2013

Rising US Dollar

Filed under: Dollar Crisis, Economic Crisis, Fiat Currency, Inflation, The Banking Crisis, The Dollar Crisis — totallygroovygirlfriday @ 2:40 am

Charles Hugh Smith brings up an excellent point. Many people are suggesting that in the short-term, the US Dollar will rise in relation to other global currencies. Groovygirl is not sure if that is the case, but if it is, that situation has consequences of its own.

Click here.

Guess what happens when Corporate profits fall? Businesses rise their prices. And if they don’t have access to free money from the government, they go bankrupt.

This is how cost-push inflation in prices can happen in a rising US dollar environment or a falling US Dollar environment, when global debt is collapsing by either not being available or costing too much relative to ability for profits to pay for it.

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