Yes, these are dangerous times, and yet the greatest dangers have always been hidden. Hidden under the facade of disjointed policies that continually do more harm than good. For years, our own apathy, our own complacency, and our own reluctance to accept the fact that lurks under our very feet the biggest financial Armageddon we will ever face. The United States is about to witness a major financial and economic restructuring that will devastate millions of Americans at a time when so many are already so devastated. An unprecedented landslide in recent history that will affect everyone in the country. It’s already running.
For years we have seen a gradual reduction in what the US dollar will buy. Inflation has taken root in all aspects of our lives. With the recent energy price increases, the price increases for all the other commodities that are essential to all of us have only intensified. Food prices have reached insurmountable costs for millions of Americans. Low-paying jobs are the new reality for millions more. Yet we continue to see top CEOs continue to reap far greater dividends than their predecessors. To date, our own government has borrowed heavily to try to offset the devastating effects its own policies and treaties have had on the demise of the American Dream. It’s like they really have no idea what they have done and are continually doing to the American landscape our grandparents knew.
It is all the trillions of borrowed money that have set in motion a chain of events that will unfold before our very eyes. A chain of events orchestrated by our own government that will alter the course of this nation on a path toward a destiny so far removed from the hopes and dreams that many of the Americas still share. For many of us today we think our days are filled with anxiety and despair, but in the blink of an eye, millions will be thrust into a harshness horrifying to comprehend. Representations of horror and catastrophic mayhem will soon arrive at our doorstep. All brought about by the colossal staggering amount of a national debt that has grown like Godzilla trampling devastating everything in sight.
It is a little known fact that the United States continually spends over $4 billion that it does not have every day. Because? Because the tax base of government revenue has all but disappeared. Yes, by the way, our policies, treaties and decisions made by Administrations and invoked by Congress of the last 40 years have undermined the fundamental principles that were the basis of the greatest economic expansion in modern times from World War II to the middle from the 1970s.
Today, the United States has more debt than any other country in history. Additionally, the costs of maintaining our debt have only increased each year. It has reached a point where the United States government can no longer pay the interest on everything we have borrowed, let alone the principal. Since the Federal Reserve is in complete control of interest rates which seems sublime for our government to keep borrowing, but is irrelevant to those millions desperately trying to put something into savings accounts, it has resulted in our government think you may still be able to continue borrowing at record levels. The complacency of our politicians who are firmly entrenched in the belief that through politics and currency manipulation they can defer paying any interest on borrowed money. Money, lent to the government with interest rates that will, of course, rise.
What prevents the inevitable is the fact that the US dollar remains the world’s number one currency. However, other countries have already taken steps to replace the US dollar. When that happens, the entire financial world will shake. A chain of events set in motion by our own government in its quest to recover investments in foreign bank accounts has inadvertently created a financial Tsunami that will undoubtedly replace the US dollar as the world’s premier currency. Very soon the United States will face an unprecedented economic and financial catastrophe that will decimate millions of Americans.
Very few Americans are aware of a law that was passed four years ago and will go into effect on July 1. House bill HR 2847, which was injected into another bill, is like so many other hog barrel spending bills Congress is famous for. But, far from the public eye, hidden in this bill is a Fair and Accurate Credit Transactions Act that stipulates that all banks in the world that conduct any type of transaction in US dollars or with customers with business deposits in US dollars they must open their internal books to the US IRS. What all this means is that the US can now audit foreign banks and seize any deposits they choose. What this bill will also do is set off a chain of events by foreign banks in that they, in turn, may divest themselves of all US dollar holdings and refuse to allow US citizens to do business. with them. reality check! This is already happening and has resulted in a more than 34% increase in the number of US citizens living abroad giving up their US citizenship to avoid taxes on money they have earned outside the US.
Foreign banks are already treating US citizens like the plague. Many foreign banks are now trying to force Americans to close their accounts. When the bank accounts are closed, it will leave many Americans with very few options to remain in that country, since they have no available banks or any way to convert their currency. This also means that no country will allow currency exchange from dollars to its currency. As a result, too many Americans will face financial peril.
We are now fast approaching a potential catastrophic economic collapse. Questions must be asked about why we have allowed a scenario to play out that would render the US dollar obsolete in the eyes of the world. Why now, after everything that happened in the United States after the financial bubble collapsed in 2008, are we faced with near certainty of economic ruin today? Because our country will no longer be able to print money at will to pay our debts. When the Federal Reserve kept lowering interest rates, it did so to allow the government to keep borrowing money and paying interest on the money they were printing. Immediately after the 2008 financial crash, the Federal Reserve invoked Quantitative Easing II. What this did was buy more than $90 billion a month in mortgages. All it did was buy US assets with borrowed money. What QEII did in essence was increase this nation’s debt even more and did nothing to improve Main Street. Wall Street once again became the sole beneficiary as millions of Americans continue to wallow in despair.
We have to always remember that the usefulness of money and credit is based solely on its soundness. Money is a tool that must be used wisely. It enables people to exchange goods and services, greatly increases labor specialization, and facilitates the economic emergence of competitive advantages. Money also plays the critical role of facilitating communications among many disparate partners. Price changes guide producers and consumers. But, when money in any currency cannot be trusted, the entire monetary system collapses. Price signals cannot be trusted and it becomes much more difficult for people to exchange labor and capital. When it comes to credit it allows an economy to grow by facilitating the growth of savings and capital investment through real interest rates. Once again, very few people are willing to delay consumption and trust their savings in an economy that refuses to pay savers above-inflation returns on their savings. That is where this country is today.
For most Americans, all seems calm. Like the calm before the storm, but no one in Washington knows how precariously close we are to realizing that our financial way of life is about to end. We have always been able to print more money to get out of financial difficulties. either the savings and loan or the most recent mortgage bailout from 2008. We just printed our output. We are still the only debtor in the world that can legally print US dollars. The dollar remains the foundation of the global financial system. It is still what the banks have in reserve against their loans. but very soon our greatest advantage will be gone.
America is the only country today that does not have to pay for its imports in foreign currency. A big plus now. To better explain how the monetary system works, let’s use an analogy of a person living in France. They want to buy oil from Saudi Arabia. You cannot pay for your oil in French or Eurodollar currency because oil is priced in US dollars. So first you have to buy US dollars and then you have to buy the oil. What this means is that the value of the French currency is of great importance to the French government. In order to maintain the value of their currency, the French must produce at least as much as they consume around the world, otherwise the value of their currency will start to fall, causing prices to rise and the standard of living to fall. However, in the United States we have been able to consume as much as we want without worrying about acquiring the money to pay for it, because our dollars are accepted everywhere. For decades we have not had to produce anything or export anything to get all the dollars we needed to buy all the oil and other goods our country needs. All we had to do was borrow and print more money. We surely did.
A little over 40 years ago, the United States was the world’s largest creditor. But in the mid-1980s we became a nation of debtors, and in the mid-1990s the United States became the world’s largest debtor. Today our government owes more money to more people than anyone else in the world. With all these debts mounting, what the government has done is sanction the Federal Reserve to print trillions of new dollars. With the latest QE now 3, they are pumping in over $65 billion a month. You would never know, though, because all that money never gets to the people who would use that money to improve the economy, improve the infrastructure, or anything else that would spur more economic growth that would allow the United States to actually be able to pay off our debt. As our creditors begin to realize what is happening, we begin to have very serious problems. In China, the current international monetary system represents a real and eminent threat to its economy. That is why the Chinese have already taken steps to eliminate the US dollar. As a result of what our government has done and is doing today, the end of the US dollar standard is fast approaching. With these new regulations laid out in this soon-to-be-enforced legislation, it will undoubtedly hasten the demise of the US dollar as the world’s first currency. That transformation, when it occurs, is the great danger for all Americans.
