It’s a Simple Question

Posted: 14th March 2013 by admin in food
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Do the new highs on the stock market indicate that our country is no longer in danger?  I believe that America’s mounting debts (particularly our federal government’s debts) will cause our creditors to abandon the dollar. It will not be a deliberate effort to kill our economy, but in an effort to cut their exposure to inflation that results as the US prints trillions of dollars to repay its debts.

In this scenario, the U.S. dollar would lose its standing as the world’s reserve currency, causing financial, political, and massive social problems, including the devaluation of the US dollar. The question to ask is what the 48 million people who depend on food stamps and government handouts would do if a crisis left the US government unable to feed & take care of them.  I truly hope this is not our future. But, I have to point out the obvious.  I hope by getting attention to this serious spending problem we can avoid a bad outcome. There have been large violent public demonstrations protesting any effort to reduce the government’s spending or to cut entitlements. What do you think will happen when the handouts stop?  You need to be able to protect your family and yourself.  Survival-Warehouse has ammo in stock now: http://www.survival-warehouse.com

For the first time in human history, the entire global economy relies on a worthless paper currency – the U.S. dollar – which is not backed by any value such as gold or silver. Around the world, 60% of all bank reserves are in the U.S. dollar. Our real leaders The World Bankers” admire the dollar’s remarkable financial flexibility. Its standing as the world’s reserve currency permits America’s leaders to do what no other country in the world can do: legally print money to repay debts without any form of backing.  There is no limit whatsoever to America’s credit.  When I write checks from my account, once the balance hits zero I have to stop or face criminal charges.  It just does not matter to our US leaders. This group feels they are above the law and in many cases they are. Insider Trading is legal for our leaders. The rest of us go to jail. They pay no Social Security taxes.  They do not need to. Once sworn into office they get their pay with cost of living increases for life. They are above the laws they make for us.The power to rack up unlimited debts quickly corrupted the US political system. In less than 50 years, we went from being the world’s largest creditor…to being the world’s largest debtor. The U.S. dollar – which remains the foundation of the world’s financial system – is little more than an “I.O.U. nothing.” The U.S. Treasury has no realistic ability to ever repay the holders of its notes. Our total debts exceed the United States’ GDP. And that’s not including our government’s unfunded liabilities, which exceed the value of every liquid asset of every country in the world.  As long as we retain our status as the world’s reserve currency, we will continue to have every incentive to go further and further into debt and to finance these massive obligations with our US dollar printing press. There’s literally nothing to prevent us from borrowing additional trillions every year.

This unbelievable power seems like a miracle to our leaders, who undoubtedly believe that by cutting more slices into the pie, they’re creating a bigger pizza. But, if confidence in the dollar were to fail, what could be used to stop the panic? There are no real reserves (like Gold & Silver). There is only more worthless paper. Perhaps that’s why the Department of Homeland Security is buying millions of rounds of ammo and thousands of tanks for use on American soil.  China and Russia, have begun buying large amounts of gold and other assets all around the world. They’re using their dollars as quickly as they can to hedge their exposure to the U.S. dollar.  They’ve also negotiated trade agreements that allow them to exchange goods (like oil) without using dollars. Dozens of other countries have done the same, reducing the use of dollars around the world.

For the first time since 1971, central banks are again buyers of gold. Credit-ratings agency Standard & Poor’s downgraded U.S. debt in response to the federal government’s continued runaway spending. Many major corporations have begun to use China’s capital markets to sell bonds denominated in China’s renminbi (RMB), rather than sell dollar-denominated bonds in New York. This reflects a growing investor interest in other, safer world currencies.  As the dollar loses value, it causes the nominal price of stocks to go up. In short, a weaker dollar is one path to a higher stock market. But it’s not the path to prosperity or wealth.  It’s just a sign of more paper dollars in the system.

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