Below are a few videos highlighting the current global financial agenda.  Over the past two years international markets have had to deal with a reckless financial crisis precipitated by U.S. political and monetary policy.  Much of the mainstream media fails to report that the rest of the world is moving away from the U.S. dollar, and it will no longer serve as the world’s reserve currency.  But this should be of no surprise, since the media shuns anything of real substance.

I don’t believe most people realize what this truly means.  For decades now, foreign central banks have generally held dollars as reserves, basically in the place of gold.  This was done because at one time the dollar was the world’s most stable currency, mainly due to the fact that IT was backed by gold.  Once we abolished the gold standard (due to our irresponsible spending) the rest of the world naively continued to treat the dollar as if it was still as good as gold. 

These factors have given the U.S. a huge upper hand in global markets.  It has allowed America to forego actual production, and export our inflation instead.  Many of the world’s markets are also exclusively conducted in dollars, including oil.  This privilege we have maintained has led to the complete disregard for domestic manufacturing.  After all, why create anything of real value when all you have to do is borrow or create money, and everyone will accept it.   Due to our lack of domestic production, if this system was suddenly taken away we would not have the capacity to produce the goods needed to maintain the viability of our currency. 

Ironically this scenario is already in the works.  It is becoming apparent to the rest of the world that the U.S. is unable to produce enough to repay our debts.  They are tired of throwing good money after bad, and they are tired of financing our wars for Israel.  Global monetary authorities are proposing that a new basket of currencies be devised in order to replace the dollar’s current status.  This is not hearsay or speculation.  This has been widely reported around the world.  Explore the following Google search to find dozens of articles pertaining to this: http://www.google.com/search?sourceid=navclient&ie=UTF-8&rlz=1T4GGLL_enUS329US330&q=dollar+reserve+currency

As mentioned in one of the videos below, the initial revaluation of currencies during this process could cause the dollar to lose at least 50% of it’s buying power.  The dollar would then be subject to legitimate valuation, where it’s relative supply and the strength of the U.S. economy would be the determinants of it’s worth; moreso than today at least.  Due to the recent explosion in the U.S. money supply, the dollar could easily end up losing far more than 50% of it’s value if the right steps are not taken.

Can you fathom what this would do to our country?  Our GDP is comprised of over 70% consumer spending, now that we have transitioned into a “service economy.”  Imagine if your paycheck could only buy half of what it currently does, or even less…  This would utterly destroy the U.S. economy and it would take years for us to regain the much-needed productive capacity to improve our standard of living.  Not only that, but think of all the people dependent on the federal government:  employees, state governments, welfare recipients, medicare and social security recipients would all take a hit.  They would see no rise in benefits to keep up with the decline, as the government struggles to meet it’s debt obligations.  You think there is a healthcare crisis now, wait until widespread inflation ensues and no one has the means to pay for it.

There are only a few ways to successfully cope with our current debacle, but none of them are being pursued by our government.  To save the value of our currency extreme spending cuts are needed.  Elimination of entire departments and programs should be pursued as soon as possible.  The future U.S. financial obligations are a catastrophe waiting to happen.  A monstrous rise in taxes will probably eventually be necessary.  I wouldn’t be surprised if one day the government has to completely default on medicare and social security payments. 

Interest rates also need to rise dramatically, probably to the level we saw in the late 1970’s.  If not, the money creation will be too intense to ward off inflation and declining demand for the dollar.  Unfortunately, the spending cuts are a political impossibility and the rise in interest rates would throw our economy into a deep depression.  Our economy survives solely on debt now, and without cheap credit consumption will drop to a fraction of what it is today.  Even more troubling is the fact that if interest rates rise, the interest payments on our national debt follow suit; and the U.S. has no means to meet these short-term payments other than to print new money.

The politically difficult options probably won’t be pursued by the government, which means the Federal Reserve will be forced to “monetize” our debt when no other country is willing to finance it.  It achieves this by buying bonds from the U.S. government, and it prints the money to do so.  When this happens on a large scale there is no stopping the inflation.  One thing is for sure - there is absolutely no easy way out of our current mess.  Disregard what the television pundits are telling you about the false “economic recovery.”  We have not yet seen the real collapse. 

Videos:

Filed under: Midwest • Nation • Nebraska • World

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