The New American Currency

The dollar may already have been nuked, the new dollar is the "Amero"

Hal Turner muestra el Amero

I'm not sure how factual this is, but it certanly fits the pattern of a planned hyperinflation followed by a new currency. Hal Turner portrays this as a "New World Order" conspiracy to create the North American Union. I'm skeptical, but hey, whatever works, you know? Also, notice that this video was posted prior to the bailout mania.

My question: If this is true, how long with the "Amero" last before it's worthless? What will back the Amero, or will it just be another debt-backed security like the dollar? The hyperinflation cycle is often repeated two or three times before settling down.

UPDATE:
Hooookay, never mind. Hal Turner has gone a bit around the bend.

Hal Turner Show

Right or wrong, advocating violent revenge in a public forum is just dumb.

Revolution may be justified, but I don’t think we’re there yet. And any revolt must be based on supporting and defending the Constitution, not on vengeance. I hope most people remember that: Stand by the Constitution!

And the Amero is probably not quite real:

Amero Coin Con

The latest score: $7.7 Trillion

Well, that sure ballooned quickly:

U.S. Pledges Top $7.7 Trillion to Ease Frozen Credit

The initial relief package was $700 billion, and that was on October 3rd. Nobody was really surprised that it went over a trillion shortly after that. But this is amazing, not even 2 months later and we're talking ten times as much.

Fortunately gas prices have dropped, which will provide a little relief for the moment. But all of this cash is dispersing into the system right now, and in the next few billing cycles we'll see prices rising, so hang on.

Hat in hand

We beg for money:

US seeks 300 billion dlrs from Gulf states

If they lend us the money, it just pushes the problem farther back. There is also the little matter of what the Gulf states may want from us in return.

If they won't lend us the money, that would be a major blow to our standing as a reliable borrower. When the world loses confidence in the US and stops buying our treasury securities, we can resort to the button!

Obama and Hyperinflation

There is nothing complicated about this. Barack Obama wants to increase government spending in a major way to fund his various programs. To do this, he wants to increase taxes. Sounds reasonable on the surface. Problem is, raising taxes reduces GDP. The economy shrinks, and overall tax revenue is reduced. But the increased government spending remains. How will he pay for all this?

Like anyone who spends more than they take in, Obama will have to borrow money to pay for all these new or expanded programs. The government borrows money by selling treasury securities. People, firms, and governments around the world buy US Treasury securities because they consider the US to be a trustworthy borrower.

Now, what happens if people around the world start losing trust in the United States' ability to pay back it's debts?

A company or individual that cannot borrow will simply have to suck it up and do without. A government, on the other hand, has another option: If you don't have enough money and you can't borrow more, just print what you need!

So with a Democrat President and Democrat-controlled Congress, with a shrinking economy and reduced tax revenue, and with reduced ability to borrow, what will prevent them from ordering up a trillion new dollars? Or five trillion?

Or is this already happening?