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Subject: Nancy Pelosi

Nancy Patricia D’Alesandro Pelosi (pronounced /p??lo?si/; born March 26, 1940) is the Speaker of the United States House of Representatives. She is a member of the Democratic Party. Before being elected Speaker in the 110th Congress, she was the House Minority Leader from 2003 to 2007, holding the post during the 108th and 109th Congresses.
Since 1987, she has represented the 8th Congressional District of California, which consists of four-fifths of the City and County of San Francisco. The district was numbered as the 5th during Pelosi’s first three terms in the House.
Nancy Pelosi is the first female Speaker of the United States House of Representatives. She is also the first Italian-American and first Californian to serve as Speaker. As Speaker of the House, Pelosi is second in the line of presidential succession, following Vice President Joe Biden, which makes her the highest-ranking female politician in American history. (Wikipedia Jan 2010)

The threat of inflation

The collapse of the dollar and US bonds?

Million mark bills used as a notepad (Germany 1923)

The supremacy of the US dollar is not yet dead, but portents of a fatal cancer — inflation — are there for all to see.

The extreme, profligate spending of the Obama administration, combined with populist, irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy.

Furthermore, a large part of the American electorate doesn’t understand or is unaware of what lies ahead.

The decline of the dollar

Will China become America’s landlord?

Pudong District, Shanghai, China

Foreigners hold $16.9 trillion in dollar financial assets, accumulated through years of selling goods and services to the US. Profligate deficit spending by the Pelosi-Reid Congress increases the probability of dollar inflation.

If foreign governments were to convert their holdings of dollar financial assets into non-financial assets, like US REITs, they can guard against dollar inflation. They might also gain a position that, in the extreme, would be against US national security interests.

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Unfortunately for society, Jeff Skilling of Enron told the truth according to tenets of moral relativism learned at the Harvard Business School and with McKinsey and Company, when, on being sentenced to decades in prison, he said, "That's the way the game is played. You win some, you lose some."
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US Bonds

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World Economy

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2010-12-31 16:01