Dollar Devaluation, Economic Crisis and How to Solve, Plus Solid Investment Advice

The impacts of economic instability and social instability are apparent throughout the world. has observed dollar devaluation, currency instability and economic disaster approaching and reported the oncoming issues for a decade, and we see continued instability both socially and economically.

Social Instability Follows Abuses From Monopolies and Concentrations of Wealth.

People in Europe are rioting because of cut backs and economic short falls. We have seen this in Greece, Ireland and most recently England, where crowds mobbed London streets, burning and vandalizing everything in site. The instability in Europe has been based on poor conception of the Euro combined with declining economic strength, as well as poor policies that have been carried on for years. The Euro is diminishing in value and is at risk.

As energy prices and food prices have risen to historic highs, a series of riots and social "revolutions" have occurred in the Middle East, and we predict that this instability will continue in Syria, Egypt, Iran, Lybia, and the entire sector. This is not unrelated to the US economy, dollar devaluation, and balance of payments and trade among nations.

Part of this is related to our theory of economic cycles and regulation. The "Boothe Economic Cycle" is a theory that I developed and taught for the World Bank in nations around the world. In short it goes like this:

1.Deregulation leads to unbridled growth of the most powerful. The biggest gain control. Monopolies and concentrations of power result. (Historic Examples: 1919-1929, and 1970-2007)

2. Concentrations of wealth and imbalance of economic prosperity and power leads to disenfranchisement of the vast majorities, creating poverty and frustration. (1919-1930 and 1980-2010)

3. Concentrations lead to monopolies and deregulation leads to abuses and corruption. (1924-1930 and 1980-2009)

4. Abuses and corruption lead to economic "bubbles" that burst causing huge economic damage, the economic damage creates crisis environments that cannot be solved without broader government intervention. (1929-1930 2007-2009)

5. Economic failure and financial crisis results in social instability, showing symptoms such as riots, revolution, and mass demands for change. (Worldwide 1930-1934 2009-2011)

6. Social instability leads to government regulation, government structure and support of the economy. (1935-1944 2009-2011)

7. Re-regulation and structure leads to stability and economic recovery, in a broader base so that the "masses" can enjoy economic potential. (1945-1970 and yet to be seen in present cycle) 

At the present time the fluctuation of international currencies is of great interest. China and India have both shown strong growth in the manufacturing and production areas, and both have accumulated huge pools of excess balance of trade. Both have shown ever stronger currency because their cash reserves have grown faster than any sectors on earth. While China continues to try to exert it's new found economic strength, we see conversely, Europe has shown less productivity, less manufacturing, and a sector that has been dominated by Germany.

Germany has the strongest productive and manufacturing base, the strongest banking system, and the strongest economy, while other nations of the "Euro" are in varied levels of economic problems. The European economy invested strongly in American banks and investment pools and was damaged by the corruption and abuses of the sale of pools of non performing mortgage loans in the billions of dollars. Latin America continues to show vibrant growth, and because of an abundance of natural resources, agricultural products, and willingness to manufacture and produce, appears on the verge of being a center of economic power in the next 20 to 30 years.

The USA has systematically exported jobs, productive expertise, and allowed the agricultural sector to shrink by hundreds of thousands of farmers over the past 40 years. The US economic leaders thought that a "service economy" could rule the world, but instead American financial reserves have dropped, the dollar and US bonds have lost credibility.

How do we fix it? The following video has key suggestions, and these are simply the tip of the iceberg of what has suggested in the past decade.