An article in Reuters points out something that absolutely no politician in America wants to say (unless of course it's a boring Ron Paul monologue), America's entitlement spending is sending it into collapse. This article is in reference to the $250 checks for old people to keep them from making trouble:
Two examples — one ridiculously expensive, one just ridiculous. But both reveal a nation completely unwilling to deal with current trillion-dollar deficits or long-term shortfalls many multiples of that number.But who cares about the long-term economic stability when you can demonize Fox news for another news-cycle to distract the public. Politicians could care less about long-term viability and only seem to give two shits about pleasing their pet interests so they have campaign cash for the next go-around. But sooner or later, we have to blame ourselves for continuously electing these yahoos.
What confidence should dollar investors have that America will really cut entitlement spending? Very little. Instead, we are more likely to see huge tax increases that could cripple productivity, or further dollar neglect, or a central bank that turns dovish on inflation. Or perhaps all three.
If Washington doesn’t care to support the dollar, why should investors?