Saturday, June 4, 2016

U.S. Dollar Collapse - Is it sooner than we think?

Debts, funny math, and political problems --- all seem to add to the possibility that a future U.S. Dollar Collapse may be right around the corner.  Perhaps people have become too accepting of America's "Too Big To Fail" mentality?   Maybe if you consider the general causes of a crash rather than just accepting the general attitude --- you can attempt to understand how it may be possible.  A U.S. Dollar Collapse is not an inconceivable concept especially when you run the math and take a close examination around the world at current conflicts and how it all interrelates.

The U.S. Dollar historically has been considered a stable currency --- the world's reserve currency.  That ideology has recently changed with the formation of the BRICS (Brazil, Russia, India, China and South Africa). This alliance aims to dethrone the American Dollar!  In late March 2013, during the fifth BRICS summit in Durban, South Africa, the member countries agreed to create a global financial institution which they intended to rival the western-dominated IMF and World Bank.  

Many of these countries often choose a differing view of U.S. military intervention and this affects currency values.  Since the U.S. Dollar's value is based on a global exchange, these countries are reluctant to support our GREEN PAPER when America is in most need of support.   There are many unresolved disputes in the world that either directly or indirectly include the U.S.A.  The US is on a rapid path to lose its World Reserve Currency Status.

Quantitative Easing is the last gasp before the ship sinks.  It may take some time to sink, but now that they are bailing out, it is a good sign the ship is beyond repair.  As more water (debt) fills the hulls of the ship, the bailouts have to increase to keep up with the increasing flow.  Meanwhile, the interest accumulates, because they are not actually taking the debt away ---- as in a real world bailout  ---- but adding more fuel to the catastrophe.   More debt to pay for the old debt.  It is insane to think this would work.   The real debts are greater than assets of the country.  The US is no longer a growth nation and there is no way to grow our way out of this.        

USD Gold

One of the key factors that many currency analyst miss on, is the fact that all the economies are connected.  So if China collapses they would no longer be able to even buy US Dollars and the currency would lose support.   If another buyer didn't ramp up purchases of USD denominated notes --- the currency could go into an immediate free fall.  There isn't anything backing the USD since 1933.  Yes---you heard it right!  The official decoupling didn't happen in 1971 during Nixon---most people think that!  The fact that gold was confiscated means the public no longer had a method to regulate out-of-control monetary institutions and this was done by FDR through an executive order. Nixon reacted on different reasoning, because other countries wanted to be paid back for debts that the US incurred during the world wars.   

If you don't understand this, I recommend you read my book: Global Economic Collapse The New Dark Ages.  There is more detail on these topics.

We have a situation in the US where the real debts are being hidden, the real state of the economy is also being hidden.  Americans have been debt slaves since 1913 when the Federal Reserve Bank was created.   The US dollar is worth 4 cents compared to a dollar in 1913.  Further dollar erosion occurred as a result of dollar becoming further unregulated.