Hi Mikey,

I don't think obg meant that the US was a fraud.

He was talking about the dollar.

Now fraud is a pretty strong word but close... I take it that he meant that the dollar was without real value because it is backed by nothing except the promise to create more debt as needed and/or to raise taxes in the future - it is not backed by gold.

I do think those running to cash, to the dollar, are ignoring the fact that it is a confidence game but it is difficult to see just what people are confident in.

This quote from the journal is talking about confidence in currencies. The 'USA' addition is mine.

"Most vulnerable, he said, are countries that rely on foreign financing to meet their deficits and have relatively low reserves -- among them Hungary, Turkey, Poland, Romania, Indonesia and Czech Republic."... USA?

BK