Yes, these are perilous times and yet the greatest dangers have always laid 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 under our very own feet lies in wait the greatest financial Armageddon we will be faced with. America is about to bear witness to a major financial and economic restructuring that will devastate millions of Americas at a time when so many are already so devastated. A collapse unprecedented in recent history that will affect every person in the country. It is already underway.
For years we have seen a gradual shrinking of what the US dollar will buy. Inflation has taken root in every aspect of our life. With recent price increases in energy, has only intensified the surge in prices of all other commodities that are essential for everyone of us. Food prices have reached insurmountable costs for millions of Americans. Low paying jobs are the new reality for far too many millions more. Yet, we continue to see major CEO's continue to reap far greater dividends than their predecessors. To date our own government has been borrowing so much money trying to compensate for the devastating effects that their own policies and treaties have had on the demise of the American Dream. It's as though they really have no clue to what they have done and are continually doing to the American landscape that our grandfathers knew
It is all the trillions of borrowed money that has set in motion a chain of events that will unfold right before our eyes. A chain of events orchestrated by our own government that will alter the course of this nation on to a path toward a destination so far removed from the hopes and dreams that too many Americas still share. For many today we think that our days are filled with anxiety and despair but in a blink of an eye millions will be thrust into a harshness to horrific to fathom. Depictions of horror, and catastrophic chaos will soon be at our door. All brought on by the colossal staggering amount of a national debt that has grown like Godzilla stomping through devastating everything in sight.
It is a little known fact that the United States continually spends more that $4 billion that it doesn't have every day. Why? Because the tax base for governmental revenue has all but disappeared. Yes, by the way our policies, treaties, and decisions made by Administrations and invoked by Congress from the past 40 years have undermined the fundamental principals that were the foundation for the greatest economic expansion in modern times right after World War II until the mid 1970's.
Today, the United States carries more debt than any other country in history. Also the costs of maintaining our debt have only increased each and every year. It has come to a point that the government of the United States can no longer afford the interest on all that we have borrowed let alone the principle. With The Federal Reserve having complete control of interest rates that seem sublime for our government to keep borrowing but is of irrelevance to those millions who so desperately try to put a little something into saving accounts has resulted in our government thinking it can still be able to keep borrowing at record levels. The complacency of our politicians who are firmly entrenched believing that through policy and currency manipulation they can defer paying any interest on the borrowed money. Money, loaned to the government with interest rates that will of course increase.
What is staving off the inevitable is the fact that the US dollar is still the worlds first currency. Other countries though have already taken steps to replace the US dollar. When that happens the whole financial world will be shaken. A chain of events set in motion by our own government in it's zeal to recoup investments in foreign bank accounts have inadvertently created a financial Tsunami that will undoubtedly replace the American dollar as the world's first currency. Very soon the United States will be faced with an unprecedented economic and financial catastrophe that will decimate millions of Americas.
Very few Americans know about a law that was passed four years ago and will take effect this July 1st. House bill H.R. 2847 which was injected into another bill is just like so many other pork barrel spending bills that Congress is famous for. But, far removed from the public's eye lies hidden in this bill a Fair and Accurate Credit Transactions Act which stipulates that all banks around the world doing any kind of transactions in US dollars or with clients with deposits of business in US dollars have to open their internal books to the US IRS. What this all means is that the US now can audit foreign banks and confiscate any deposit they choose. What this bill will also do it will set off a chain of events of foreign banks in that they in turn just might divest all holdings in US dollars and refuse to allow US citizens to do business with them. Reality check! This is already happening and has resulted in an over 34% increase in US citizens living overseas and giving up their US citizenship to avoid taxation on monies the have earned outside the US.
Foreign banks are already treating US Citizens as if they have the plague. Many foreign banks now are trying to force Americans to close their accounts. When banks accounts are closed it will leave many Americans with very little options to remain in that country since they have no banking available to them or any way in converting their currency. This also means that no country will allow foreign exchange from Dollars into their Currency. As a result too many Americans will face financial jeopardy.
We are now fast approaching a eventual catastrophic economic collapse. Questions need to be ask as to why we have allowed a scenario to play out that would render the US dollar as an obsolete currency in the eyes of the world? Why now ,after all the United States went through following the financial bubble collapse in 2008, are we faced with an almost certainty of economic doom 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 they did so to allow the government to continue to borrow money and pay the interest with the money they were printing. Right after the financial meltdown of 2008 the Federal Reserve invoked Quantitative Easing II. What this did was buy up more than $90 Billion per month in mortgages. All that did was buying American Assets all with borrowed money. What QEII did in essence was raise this nations debt even higher and did nothing for the betterment of Main Street. Wall Street again became the sole beneficiaries while millions of Americas continue to wallow in desperation.
We have to always remember that the utility of money and credit are based solely upon their soundness. Money is a tool to be used wisely. It allows people to exchange goods and services, it greatly increases the specialization of labor and facilitates the economic emergence of competitive advantage. Money also plays the critical function of facilitating communications between and among many disparate partners. Price changes guide producers and consumers. But, when money of any currency can't be trusted the entire monetary system breaks down. The price signals can't be relied upon and it becomes much harder for people to exchange labor and capital. When it comes to credit that allows an economy to grow by facilitating the growth of savings and capital investment through real interest rates. Here again very few people are willing to delay consumption and trust their savings in an economy that refuses to pay savers any or so little return above inflation for their savings. That is where this country is today.
To most Americans everything pretty much seems to be calm. Like the calm before the storm, but, nobody in Washington know how precariously close we are to a realization 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. whether it was the Savings and Loan or the most recent Mortgage bail out of 2008. We just printed our way out. We still are the only debtor in the world that can legally print US dollars. The dollar still forms the basis of the world's financial system. It still is what banks hold in reserve against their loans. but pretty soon our biggest advantage is set to disappear.
America is the only country today that doesn't have to pay for it's imports in foreign currency. A big advantage now. To further explain how the monetary system works lets use an analogy of a person living in France. They want to buy oil form Saudi Arabia. You can't pay for your oil in Frances currency or the Euro dollar because the oil is priced in US dollars. So you first have to buy US dollars then buy the oil. What this means is that the value of the French currency is of great importance to the French government. To maintain the value of it's currency The French must produce at least as much as they consume from around the world, otherwise the value of it's currency will begin to fall, causing prices to rise and it's standard of living to decline. In America though 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 haven't had to produce anything or export anything to get all the dollars we needed to buy all the oil and other goods our country requires. All we had to do was borrow and print more money. We surely did.
It was just a little over 40 years ago that the United States was the worlds largest creditor. But, by the mid 1980's we became a nation of debtors and as of the mid 1990's the United States became the worlds largest debtor. Today our government owes more money to more people that anyone else in the world. With all these debts accruing 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 out over $65 billion a month. You would never know it though because all that money never makes its way to the people who would use that money to improve the economy, improve the infrastructure or any other aspect that would stimulate more economic growth that would enable the United States to actually be able to pay down our debt. As our creditors start to figure out what is happening we are beginning to have very serious problems. In China the current international monetary system poses a real eminent threat to their economy. That is why the Chinese have already taken steps to phase out 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 set in this legislation that is soon to be in effect will undoubtedly hasten the demise to the US dollar as the world first currency. That transformation when it occurs is the great danger for every American.