Dark Skinny

The compounded difficulties of an inflating and volatile dollar, the US fiscal debt, the cost of oil, the sub-prime credit problems and market turmoil are all contributing massively towards America's coming bankruptcy. These problems are all incestuously connected to each other, fueling and interferring with each other's effects.  At the moment, in order to pay back America's current total fiscal deficit, Americans would have to pay it's government $400,000 each. Americans appear to be living on borrowed time as well as too much borrowed credit. I'm a European, and I am very aware that if the US goes bankrupt, then Europe must inevitably follow in this collapse.

I am also of the opinion that the $700 billion will have a very short term revival effect on the markets, - if any,  after all the US has a growing fiscal debt of about $59 trillion dollars now which is growing like a cancer at $1.3 trillion a year. So a $700 billion injection seems pretty useless as a band-aid fix. Below, I present two videos - one a Dutch video looking at the US problem - there are some easily understood stories and metaphors that Peter Schiff - a well-known American investor - tells on this video to illustrate the economic effects of the dollar and America's fiscal path now. The other is an interview by Marc Faber - a successful European investor who knows the current American economic status intimately.

Bernanke and the Dollar Collapse

[youtube:http://www.youtube.com/v/GvtlyYN8LUw]

Marc Faber on the £700 Billion Bail-Out

[googlevideo:http://video.google.com/googleplayer.swf?docId=5099213542448858322]