Today in History

March 2, 1904
Today marks the 110th birthday of DR. Suess.  Check it out and other things that happened today in History

http://www.history.com/this-day-in-history



September 19,

1778: Continental Congress passes the first United States federal budget which mainly focused on paying back war debts and other military expenses.  After the revolutionary war, the country was in a lot of debt and under the Articles of Confederation, the United States was unable to levy taxes.  Therefore the delegates at the Constitutional Convention replaced the Articles of Confederation with the Constitution allowing Congress to levy taxes and better regulate the federal budget.

What would our founding fathers say about our current economic situation and lack there of a budget?  Today the market is at an alltime high with news that the FED will not reduce the rate at which it is pumping money into markets.  The FED will continue its $85 billion bond buying program.  When is enough, enough?  It appears the FED is not cutting back but what does that mean for the future of the US and Global economy as well as the US dollar?  The way I see it, the federal government is run as a hughe ponzi scheme.  The US owes more money in annual debt expense that they make in annual revenue.  This causes the Treasury to borrow more money to pay off old debt.  Therefore, to pay off old debt, the FED prints money, buys bonds and the Treasury then uses that money to pay off debt holders such as China, Japan and Eurpope.  China and Japan alone hold 15% of the nations $15 Trillion dollars of debt.  While the US owes 41% of that debt to itself.  Simply the US is printing money to pay off its debt holders at the cost of holding its own debt.

Anyone can figure out that this is not sustainable and just like in a ponzi scheme; is it possible for the US to go belly up and have the floor collapse under neath it?  Its possible.  The most probable scenario is for the dollar to lose much of its value against other currencies creating hyper inflation.

There are always bubbles in the market and right now, the US dollar may be in a bubble soon to burst.  The FED's decision to continue its buying program is just another attempt to prolong the ultimate demise or at best collapse of the dollar.  We have seen this before in the housing market.  Remember - early 2000s the government to measures into their hands to keep rates low and housing prices high.  Well - different market, same story.

See more "Today in History" such as the first underground nuclear test just north of Las Vegas, NV in 1957 felt all the way in Alaska!  Was this smart considering the super volcano located just a few hundred miles north in Yellowstone?  How many "nuclear test explosions" are we from self detinating this volcano?

http://www.history.com/videos/this-day-in-history-09191995---unabomber-manifesto