That still leaves more questions than answers and doesn't make any sense to me at all given our moneys low worth and continuing slide. If it is all going to drug lords I can understand that, for any other reason paper is a needless expense and just insures you loose more of your money's worth before you can exchange it.
Stockpiling cases of twinkies makes more sense financially than holding paper US money no?
Actually one of the reasons why the decent of the dollar in real value has been slower than before is because of the EuroDollar market (US Dollars Over Seas.) By shipping extra Dollar overseas (to the BRIC nations, Europe, Japan, and the Middle East) it keeps the supply here in the country low which helps protect the value from any sudden shocks.
If China wanted to f* the US over all they would have to do is dump their treasury bonds.
Or just stop buying as China and Japan are two of the biggest holders of US Treasuries (the Defunct Social Security Administration is another big holder.)
Here's a simple way to imagine it. Now, say you are a farmer, and your crop yield is 150,000 tons, which is more than the community near you needs. So, if you tried selling it just to the community eventually everyone would have all the wheat they need and you would be facing decreasing returns on your yield. So, instead, you just sell what you would get your desired price for to the community and then take the extra and sell it some where else, because you have expenses that you need to pay and thus can't afford to just dump the wheat with out having a smaller yield the next year.
That's kind of like what the government is doing with the dollar. They have consistently overproduced, but due to foreign demand the value of the dollar is not sliding as fast as it would if all the dollars were kept here in the country.
So the fact that we see Billions flow on the international drug trade from the US to Columbia and Mexico is not necesarilly a bad thing (it keeps inflation down.)
It is however a bad thing as that money could circulate around our own economy and go to build up our communities. Same with the billions that illegal and legal immigrants send back to their true nations. If that money circulated in our local economies it would be used to buy vehicles, open new businesses, produce new goods and services, and, most importantly for areas like California, be taxed.
So in addition to legalization of everything (let people choose what they want to do to themselves) the United States also needs to send illegal immigrants back home and make sure that their jobs go to Americans that will spend that money inside our country.
About the only thing I'm seeing from Obama is that he is going to usher in a new period of stagflation that makes what Carter did look like a Sunday Picnic. Well, that and the fact that he is clearly ignorant of history otherwise he would recognize the fact that his asinine socialist policies are responsible for impoverishing the Ukraine (as well as killing 20 - 40 Million Kuluks (independent middle class farmers)), destroying the Republic of Rome, and the Empire of Rome, the extremism of National Socialist Germany (and the Holocaust), the death of 30 - 50 million Chinese from the Great Chinese Famine, the death of millions in Cambodia due to his ideology giving tyrants an excuse to murder their own citizens, and more crimes.
Besides, as he admitted himself that he never be friended any one that would challenge his ideas I can not have any sort of respect for him. Everyone that posts in this forum and engages in debate is more worthy of respect than Obama.
it's all about keeping faith. Money is a religion. Yes, the emperor wears no clothes, but it's okay as long as no one talks about it. 
