Here’s an excellent if troubling item from David McWilliams in this afternoon’s Huffington Post:

In the past four decades, we have seen the Fed print money at a rate between 5% and 10% per year while pretending that this is not happening. The US also persuaded other central banks to link to US treasury bills instead of gold, and the world fell for this. So we have a situation where the US prints money to pay for its day-to-day spending and then borrows the cash from the rest of the world, issuing IOUs in this increasingly worthless currency as collateral for the loans. You’ve got to admire such chutzpah!

Not surprisingly, the dollar has been on a downward path for a few decades. Of course, there have been years when it bucks the trend, but ultimately the purchasing power of the average American Dollar has been embezzled relentlessly.

Read it all - if you can stand it.

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