USD - United States Dollar Profile: USD is an equity issued by the United States SC (sovereign corporation) headquartered in Washington DC. It pays no dividend, but shares are commonly used as a medium of exchange, and have the unique status of world reserve currency. Gross revenue: $5.7 trillion. As an SC, revenue is generated by looting citizens and firms under its control. $3.0 trillion comes from direct federal expropriations, 1.5 from subsidiary “state” expropriations, and 1.1 from “local direct revenue.” Another “off book” source of plunder comes from seigniorage operations - essentially issuing more shares of USD or borrowing with a promise to issue more shares. There is no limit on number of shares that may be issued. Concerns: United States SC has no voluntary market activities, so income depends entirely on general submission of its subjects (“citizens”) to sovereign extortion. A change in public attitude towards taxation and/or a strong public rejection of US operations (e.g. military occupations in the Middle East) could reduce plunder rates significantly. Counter-economic free markets are also a danger to US revenue. Finally, the world reserve monetary status of this equity is tenuous due to share inflation, so foreign central banks are widely expected to reject the USD as a reserve currency in favor of more stable, less inflatable alternatives. Another ominous sign for this stock is the emergence of a new class of competition - the disrupting technology of math-based crypto currencies. Earnings per share: The US SC has been operating at a loss for decades, so the EPS is negative, as is the PE ratio. Analyst Opinion: A very poor investment. Sell as quickly as possible. Holding this stock risks major loss, since BRIC countries’ central banks are likely to start dumping the dollar in favor of other monetary equities or precious metals. We recommend divesting your portfolio of this equity in favor of either specie or productive market investments. Disclaimer: I am short USD and long XAG. I have not been paid for this analysis.
Posted on: Sat, 08 Mar 2014 14:45:27 +0000
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