Could 2011 spell 'Chapter 11' for the U.S.?

Recently there have been disturbing reports on various news outlets about the rise of food and oil prices. Now the housing market also appears to be collapsing once again. The floods in Australia is said to affect the meat market due to cattle being lost that some American companies purchase from. Also the price of corn and rice is said to be on the rise as a result of not so good harvests. And on a side note, should we be surprised since corn is used to make ethanol as we see the increase of ethanol placed in our fuel supply?

To go even further on this matter, our dollar is continuously being devalued by the U.S. government printing more paper. They got by with it for a long time since the foreign governments always recognized the dollar as the standard exchange of currency since World War II. Oil, for example, was always purchased with dollars by other countries instead of their own currency. But it is even more disturbing that in restaurants and stores in foreign countries are now placing signs on their front doors no longer accepting the American dollar.

It is even more alarming that some businesses in Washington D.C. are accepting foreign currencies other than the dollar for purchases. And this will sound strange to a lot of people, but did you know that some states (yes, in the United States of America) are forming their own currencies? In the Berkshire region of Massachusetts, they have formed a local currency known as 'BerkShares.' They can legally go to the local bank in the southern region of Berkshire, Massachusetts and exchange 90 U.S. dollars for 100 BerkShares. If you don't believe me, ABC News did a report on this back on March 13, 2007 and you can find more information on BerkShares by searching the internet.

But the main point I'm making is that other countries are no longer accepting the ever so inflated dollar and they will soon be demanding other forms of payment. Don't be surprised if you see even more growing resistance in imports and exports relations to the U.S. with the foreign countries calling all the shots. Another example, China is the leading foreign country of possessing U.S. dollars (should we be surprised). But now they are transferring the dollars they have to other currencies and becoming more reluctant of accepting dollars in their banks.

It is becoming more relevant that the U.S. government can no longer print it's way out of this anymore. Will we experience potential food riots and so forth as have happened recently in other countries? Is it also any coincidence that the stock market is eerily matching a pattern back in 1937 when the market dropped after signs of growth? Who knows what will happen this year and beyond, but keep a close eye on the food, oil, and housing markets. And at the same time, never lose faith.