+4.50

One may ask, what does this mean. A simple answer is this. The dollar weakened against all foreign currencies, because it did, the price of gold increased. How does this make sense. As an example, if you travel to Canada, you need to purchase Canadian dollars to transact business. Today one Canadian dollar cost  97 U.S. cents';. Next week the Canadian dollar cost $1.44, now you have to exchange  50% more dollars to buy a Canadian dollar. Simply stated anything purchased from or in Canada cost 1.5 times it did the week before. The same goes with gold. In Canada, the price of one ounce of gold actually stayed the same in Canadian dollars, but since they purchase gold in U.S. dollars the price actually went down. For U.S. buyers, we paid more. When this is applied to imports, our cost will be significantly higher, therefore it will impact our way of life as inflation skyrockets. Because why would foreign companies continue to accept dollars if they buy less gold. But if you had an ounce of gold, the cost to buy a product actually went down as you were able to exchange gold for more dollars.

Now you ask why did the dollar go down in value. What happened needs another simple explanation. When the Canadian companies take these dollars to the bank in Canada, the bank has two choices.  Either sell them for Canadian or any other foreign currency or buy U.S. treasury bills, notes or bonds. It is apparent in the above scenario that the Canadian bank dumped the dollars on the market. Because there were not enough buyers for the dollars it resulted in a decrease in their value. With all of these dollars floating around, the U.S. government becomes more concerned. The Treasury has weekly auctions in which they sell treasury bills, notes and bonds to to new customers. They must continue to do this in order to pay off the old ones coming due. Similar to a Ponzi Scheme. If enough buyers come forward there is no problem, but when the buyers become scare, the price of the bonds decreases and the interest rate paid by the treasury will increase as buyers demand more interest to account for the risk.

We are not alone, Spain, Ireland, Greece, England, Iceland are all in the same position. Too much public debt and a limited means of paying it back. Sooner or later there will be a default. Greece will be the first, Ireland possibly the second. When this happens, violent protests will take place. Protests by the public sector will be set off by cutting public sector employment and salaries. We all know how violent the unions are and don't forget the entitlement class, they have nothing to lose. So Wake Up America,  are you ready for the the violence ahead. It is coming to a neighborhood near you.