The Unsustainable US Dollar Coming to Your Town Soon: PART ONE

The Unsustainable Dollar : PART ONE

All of us are quite aware of the continued deficit spending that has gone on ever since the Republican majority Congress held the Clinton Administration expenditures to a balanced budget. However, once the Clinton White House left office under a deluge of law breaking accusations from the White Water scandal to Monica Lewinski, from the missing hard drives at Los Alamos to Clinton’s midnight gravy train of faxed pardons, it began.

Under George W. Bush, barely in office for a few months, 9-11 shook America to its foundations. The worst attack on US soil in history necessitated a costly military response that began the deficit spending again. A military that had languished ill equipped and poorly funded under Clinton would now get what it needed to retaliate against Al Qaeda and Taliban operatives in the Middle East.

However, recent deficit spending is only part of the story. Shortly before the end of World War II in June of 1944 the major allied nations of the world met at Bretton Woods, New Hampshire  and discussed the future of the world monetary system. The US dollar was then made into the world’s reserve currency, making it the most accepted form of financial exchange in the world. As a result, the United States always had privileges that dictated economic advantage over other nations.

 For instance, it was cheaper for American consumers to buy crude oil from the Arabs thanks to the universal acceptance of the US dollar. Where as America today pays an average of $2.72 a gallon for gas, Canadians pay close to $4.00 per gallon. In Europe it is possible to $7.00 a gallon in Norway or $6.60 a gallon in Italy, all because of the advantage of the US dollar having world reserve status.

Incredibly, in less than 24 months the Obama Administration has spent 2.3 trillion dollars to nationalize the car industry, guarantee loans for a bankrupt Freddie Mac and Fannie Mae, bailed out banks as well as insurance giant AIG while supporting more Americans on unemployment then at any other time in our history.

The deficit alone has not been the only problem. Because of government policies and over taxation our industry has moved overseas or has simply failed under the weight of world wide competition. For decades the US government has allowed a trade imbalance that has enabled foreign nations from Japan to China to dump cheap manufactured goods on the US market while our international neighbors have refused to allow US products into their markets. As a result US companies have been forced to out source as opposed to losing market share and go out of business. This has meant that while America has become a huge consumer its production levels have dwindled creating fewer and fewer jobs for Americans while other nations abroad gain momentum by filling the gap with their own production of goods and the jobs that come with them.

The unbridled spending of the US government which has resulted in greater deficits has put countries like China in the driver seat while holding 500 billion in US Treasury Bills, literally allowing the feds to borrow from them in order to pay for the operation of an out of control, oversized, government. Democrats have knowingly been on a spending spree in order to buy votes and stay in power while wrecking the fiscal stability of the nation.

The federal reserve continues to print worthless paper money as fast as the presses will allow because the US is the only government in the world that is allowed to print fiat currency, that is money that is not backed by gold, any other precious metal, or any other form of valuable assets.

So the Federal Reserve is in a bind, and the United States faces catastrophic inflation due to devaluation of the dollar and the lack of buying power that comes with it. This coupled with the fact that there are more Americans out of work who can‘t pay taxes,  which leaves half of the number of Americans who do work supporting the other half that do not work, living off government charity, or are legally disabled. 

Any country like China who has trusted the American dollar because the US has been prosperous, had a tax paying populace, and had the ability to generate economic prosperity making it appear to be a good risk. Therefore, a 500 billion dollar debt could theoretically be paid back. However, with Democrats on a massive spending spree and the US economy in the doldrums many nations are thinking that there needs to be a better world currency to use as a reserve than the US dollar. Once the US dollar is rejected as being the world’s reserve currency we will also lose our ability to buy cheap foreign oil. We will no longer have the preferred status we once enjoyed and US banks will not be able to invest, make loans, or charge interest at a competitive rate any longer.

The cost of living will shoot sky high as the excessive price of oil makes any product cost more due to the expense of transporting it. The cost of fuel will make anything sold in the market increase to unbelievable levels as much as a 100% increase over night as skyrocketing costs hit every segment of the markets.

The government will attempt to intervene with price controls, but retailers and producers will either ignore those guidelines or quit business as their costs will greatly exceed their revenues. It will be a vicious circle as dog eats dog in the never ending cycle of a devaluing currency and run away prices.

This is what the government, including Timothy Geithner will not tell you. They will absolutely not warn you of the impending disaster. They will not tell you that banks may fail, or that as the dollar devalues you might not be able to even cover the checks you write as the dollar shrinks even faster than you can cover your own purchases with. Just as every country that has experienced catastrophic financial failure, when the end comes the government will only be looking after itself not after the best interests of its citizens. To make matters worse, those trying to get their gold, silver, and other valuable securities out of the country will find the government will not allow foreign exchange or investment.

 They will be stuck in a country where the citizens have been stabbed in the back by their very own government that once operated under the premise, of the people, for the people and by the people. Why, because the federal government has been violating our Constitution for a long time to the deaf ears and blind eyes of the people who didn’t pay attention. We, the American people will taste the bitter rind of betrayal in a way we have not seen since the Great Depression, though even worse as economic failure had not reached the levels we see today.

Does this sound like an unrealistically and bleak forecast? Do you think I’m obsessed by gloom and doom? Let me tell you, there have been numerous Christian groups, financial experts, and those like Ron Paul in the Senate who have been warning people for the past 3 years now that we are headed for the worst thanks to bad fed policies and a Federal Reserve that is bent on pursuing its own interests regardless of the hardship of the American masses.

The question is not will the US dollar collapse under present conditions, but only when. I will continue this article in PART TWO as a public service and historic overview of just how your government has handled crises in the past.

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Comment by Anti Oligarch on December 22, 2010 at 12:13pm

The "Clinton balanced the books", "budger surplus", blah blah. fables were created on the back of looting of our social security funds.

Back in 1998 people who spoke out against it were ignored, now we look back and pray that it'd never happened.

"Destroying the New World Order"


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