I figured I’d start a thread about the biggest single threat to our nation that no one is talking about and analyzing in today’s media. The collapse of the world reserve currency, the American dollar. For those that are aware of this threat if I leave out any important information please feel free to add below.
Every country trades (exports/imports) goods and services in the Dollar. It’s a world wide currency. I believe it’s been that way since we wen’t away from the gold standard in the 1950’s. I’m sure all of you are aware that of the saying over the last few years of how we are spending .46 cents of every US dollar to pay for our national debt, which has reached a record high if 16 trillion ( I thought I heard it’s really more like 20 trillion). That news has been made public. Now what the average citizen doesn’t realize is that the Federal Reserve now thanks to congress and the president, has the legal ability to print unlimited amounts of dollars, which is what the federal reserve does. Now according to QE3 which was part of the economic recovery package, the Federal reserve is now printing 85 billion in fresh bills monthly and pumping it into the economy to try to stimulate job growth here in the US. To rev up the economy. However, it’s clearly not working, because if it was the unemployment rate wouldn’t be 7.5% but rather around 4%. So we are wasting over a trillion a year doing this. This also allows the federal reserve which is also in control of our nations debt interest rate (interest on our nations debt) to keep our interest rate at near 0%-0.25%. So basically we are borrowing money from other country’s (china etc…) by printing more dollars, to artificially keep interest rates low, which intern devalues our nations currency (the dollar), to try to stimulate job growth, which isn’t working.
Now what the federal government doesn’t want you to know and why no one except Ron Paul, and his son Rand Paul are mentioning is that eventually they will be forced to raise those interest rates from an artificially low rate of 0%-0.25% all the way up to a normal interest rate of 4.00%. That’s a gigantic difference. When that happens our nations debt will go from 20 trillion+ all the way to over 45 trillion dollars, which has to be paid back. At this point the dollar will lose all or the majority of it’s value and every country will stop using it and it will no longer be the worlds reserve currency. We currently have too much national debt right now to get out of this mess. It’s already too late. President Obama already won a second term and has 3.5 more years as president, and there’s no way he’s going to raise interest rates and stop this printing of all of this money. Even if we had a tea party congress and a tea party president, it will already be too late.
At this point, The federal government will need to pay back the debt and find a way to raise the value of the dollar and will likely take extreme measures to do so like the did during the 1920’s depression. Yes I said depression. You think this recession was bad it’s actually a walk in the park compared to this. The Federal government will be 45+ trillion in debt and that kind of debt can’t be paid back with just raising taxes. Even if everybody paid 100% of their yearly income in taxes it wont even do the trick. What they did in the depression of the 1920’s is close and shut the doors of all the US banks, and cease everybody’s assets that are related to the dollar. That means every type of checking account and saving account. That left everybody with nothing. The government was within legal authority to do that too. Something else people don’t realize is that **Executive Order 6102 is an Executive Order signed on April 5, 1933, by U.S. President Franklin D. Roosevelt “forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates within the continental United States”. The order criminalized the possession of monetary gold by any individual, partnership, association or corporation. **Basically, if you didn’t purchase gold and actually received it before the economy collapsed you are out of luck and screwed.
During a depression no one can find work (if you do your lucky, but still not making much). Basic necessities like staples (sugar, cotton) and Gasoline rose in prices never before seen. Specialty good were worthless like TV’s etc… because people needed things to survive. This is what inflation looks like.
There are many people that believe the collapse of the dollar is imminent. Look at what the billionaires are doing, the rich people. They are buying up lots of physical gold. Other country’s like China, Australia, Middle east, India have recently abandoned the dollar and if you go there you can’t use it anywhere, because it wont be accepted. Russia just bought enough physical gold that weighs as much as the statue of Liberty. What many don’t know is that these are the big players in the gold market and they try in sneaky ways to keep the little guys from buying gold. Notice how the value of gold has lowered recently? We’ll it’s not because the economy is turning around or because the value of the dollar is rising, it’s because Cyprus sold some of it’s gold reserves to pay for a bailout, because it’s in trouble. Remember the best time to buy and invest in something is when people are selling and the price is going down.
People think the dollar will really start to devalue and be worthless around 2015-2016. My advice to anybody that is able too is buy physical gold now. Do is asap, and sacrifice vacations and fun and just buy as much physical gold as you can. It will be your life line when the crap really starts to hit the fan.
This is 1920’s all over again and everything is alike including the president. Please, if anybody can make the argument that this wont happen, I want them to post how. Thanks.