“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the US Government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. Increasing America’s debt weakens us domestically and internationally. Leadership means that, ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.” – Senator Barack H. Obama, March 2006
What if I told you that in a week the dollar would cease to exist? My phone would be ringing off the hook trading your counterfeit notes for a store of value in silver and gold. The problem is there will be no forewarning; no one will be notified before it happens but it will happen. The madness, at the hands of our masters, continues! Most Americans listen to the zombie news sources and are unable to think for themselves rationally, objectively or deductively. We are being told that the worst is over and now our government masters have again shutdown our government.
We have no free markets only intervention into the markets to keep them afloat. Q-E to sham interest rates is their medicine that masks the problem but never cures the sickness. Treasuries continue to go out and the Federal Reserve continues to buy debt. THERE WILL BE NO TAPERING! The markets have shown twice now that intervention is all that are keeping them afloat. Those that are holding dollars, IRA’s, 401k’s, pensions, stocks, bonds and ETF’s are going to be devastated!
Many factors could be attributed to the start of the collapse but the most troubling is the tiny flaw in fractional banking. What happens when everyone wants their money back at the same time? President Hugo Chavez of Venezuela in August 2011 asked for their 99 Tons of gold to be repatriated from the Bank of England. They complied and so the first brick holding up the Ponzi scheme of fractional gold reserve lending was pulled from the foundation. There have been others too many others since! Switzerland in March of 2012, Ecuador in October 2012, Austria in Nov. 2012 and Azerbaijan in Jan. 2013 all removed their gold from the Bank of England. Remember Germany requested all their gold from the U.S. earlier and where told they would have to wait 7 years for 300 tons. Why? Because there is not enough gold on hand as it has been leased. Now the Bank of England is empty and the COMEX is close to empty as some $1 M tons have been sold just this year to the Eastern world.
Every precious metals broker I know is asking their distributor if the distributor could run out? All unconvincingly say “no”! We know, with certainty, the answer that at some point there will be an inability to attain precious metals at any price.
Our Treasury Department reports that foreign central banks hold $6 trillion in U.S. securities and if our government defaults on their payments the international economies will have to absorb the loses and write off their bad debts. This will be the death nail in the dollar as the reserve currency of the world and the Yuan will be the new gold back dollar.
The “clock is ticking” we have been warned to avoid a U.S. default, a default that would devastate China’s interests and the global economy. Our government is not particularly concerned about China’s interests, but what happens if China is forced to dump $1.3 trillion in US Treasuries in a liquidation sale and write off?
It is a mystery to me that American’s cannot see the writing on the wall. The Bank of England signed up with China for $33 billion worth of Yuan in a 3 year swap of currency. China is doubling and tripling their economy when compared to the U.S. The powered elite will no longer be able to hang onto their dollar reserve currency when even the big nations of China, Russia, Japan, Brazil, South Africa and India no longer use the no longer “Almighty dollar” for exchanges of imports and exports. Instigating wars, fought by the populace, will be impossible when “all nations” no longer use the dollar for trade.
Our accomplishments in “coming a cropper” over the past 5 years:
- U.S. sovereign debt was downgraded in 2011, the 1st time in American history.
- Federal debt (67% of GDP) is highest since WWII.
- Long term unemployment (46%) is highest since the depression.
- Federal spending (25% GDP) is highest since WWII.
- Budget deficit of 10% is highest since WWII.
- Home ownership (60%) is lowest since 1965, prior to 2008 80%.
- Government dependency (47%) persons receiving one or more benefits.