With QE3, the latest round of "quantitative easing," the Fed is now promising to print $85 billion a month. That's over a trillion dollars a year.
And now, finally, the impact of this is being felt in a big way. As the U.S. creditors figure out what's happening, we are beginning to have very,
very big problems. I see the U.S. creditors (which include foreign countries and other investors here and abroad) will either completely stop
accepting dollars in repayment... or greatly discount the value of these new dollars. I'm sure you think that sounds crazy, but as I'll show you, it
is already happening. In fact, Zha Xiaogang, a researcher at the Shanghai Institutes for International Studies, recently said: "The shortcomings of
the current international monetary system pose a big threat to China's economy." That's why China is now actively taking steps to phase out the
U.S. dollar because of its frustration with the U.S. government's mismanagement of currency. And how does the government respond? They have the
audacity to label China a "currency manipulator!" Do you see the irony here? As a result of what the government is doing today, I'm confident we
will soon see an end of the U.S. dollar standard. In fact, I'm 100% sure of it. It's not a matter of "if," but "when." And I think it's going
to happen much, much sooner than most people think. When taking into account that the derivatives are due in 2015 and the combination of ICE to the
global commodities, while being connected to individual retirement accounts...Most of these will be legally tied to the bonds created to allow this
printing and when become due, then all assets will be FROZEN by ICE to render the debt paid. Of course, I'm not the only one saying this. Even some
mainstream publications like the New York Post are recognizing the inevitability of this event. The Post recently reported that, "The US dollar is
getting perilously close to losing its status as the world's reserve currency. Should it cross the line, the 2008 financial crisis could look like a
summer storm."And billionaire Ray Dalio of Bridgewater Associates, the largest and best-performing hedge fund in the world, told CNBC that it is
"inevitable that the dollar's role as the world's currency will diminish from the dominant world currency to one of a few." "It will fade
probably fairly quickly, so the United States, which accounts for almost two-thirds of the reserves will probably go down to 50 percent of the
world's reserves." Keep in mind, the U.S. dollar has been the world's reserve currency for decades now... so most Americans don't have a clue
about what the repercussions are of losing this status.
And maybe you think it could never happen... but the truth is, this is exactly what happens when countries get too far in debt or when they consume
too much or produce too little. In fact, the same thing happened to Great Britain in the 1970s.
First Britain… Now America. Most people don't know this, but Britain's sterling was the reserve currency for most of the world for nearly 200
years... for most of the 18th and 19th centuries. It continued to play this role until after World War II, when America was forced to prop up
Britain's economy with foreign aid –remember the famous Marshall Plan, when the U.S. gave billions to help European countries rebuild?
Unfortunately though, Britain pursued a socialist national agenda. The government took over all of the major industries. Like Barack Obama, Britain's
leaders wanted to "spread the wealth around." Pretty soon the country was flat broke. The final straw for Britain came in 1967, when things got so
bad the Labour Party (the socialists) decided to "devalue" the British currency by 14%, overnight. They believed this would make it easier for
people to afford their debts. In reality, what it did was make anyone holding British sterling 14% poorer, overnight, and it made everything in
Britain, much, much more expensive in the coming years. And for the country as a whole, it ushered in one of the worst decades in modern British
Most Americans don't know about Britain's "Winter of Discontent" in the late 1970s, when the government put a freeze on wages. There were
continuous strikes in nearly every sector... grave diggers, trash collectors... even hospital workers. Things got so bad at one point that many
hospitals were reduced to accepting emergency patients. And mothers giving birth had to bring their own linens. In 1975, inflation in Britain
skyrocketed 26.9%... in a single year! The government also imposed what was known as the "Three Day Week" in 1974. In short, businesses were limited
to using electricity for only three specified consecutive days' each week and they were prohibited from working longer hours on those days.
Television companies were required to cease broadcasting at 10:30pm... to save electricity.Just how bad were things, exactly?
The garbage that piled up because they didn't have enough money to pay trash collectors a fair wage... Imagine... Britain was a global superpower for
150 years. But when they started intentionally devaluing their currency, things went straight downhill. It's now obviously clear that the same thing
that happened to Britain's sterling when it was the world's reserve currency, is now happening to the U.S. dollar. In fact, the exchange value of
the U.S. dollar has fallen nearly 10% since June 2010. And its rate of decline is accelerating. As the U.S. dollar continues to lose its position as
the world's currency, gas, oil, and other commodities will continue to skyrocket. Almost EVERYTHING we consume will get dramatically more expensive.
All the clothing, furniture, and household goods we import from China. All the food we get from Central and South America... all the electronics,
televisions, computers, and cars we get from Asia and Europe. And when you look back over the past few years, the numbers are startling...And the
point here is simple... As they print more money, the price of the world's most essential commodities have soared. This is NOT a coincidence. Around
the world, as they print, prices soar... citizens protest... governments get overthrown. And it's only going to get worse...Because here's the
important fact you simply must understand about the United States right now:
The government can NOT stop printing money because there is no possible way for us to actually afford their existing debts. No one wants you to know
this. No one.
That's why, despite the obvious inflation going on all around the world, the Fed continues to say there's no inflation at all. And that's the scary
part, to me.
Just like in a Third World country, the government is radically devaluing the dollar and simply lying to everyone about what is really happening.
Whether you realize it or not, there is already a "run" on the dollar. Many of their creditors, like the Chinese, are getting out of the dollar as
fast as they can via strategic commodities, like copper, gold, and oil. That's partly why commodity prices are soaring. Unfortunately, skyrocketing
commodity prices are just the beginning.
There are other disastrous consequences to the U.S. dollar losing status as the world's currency...For example, as demand for U.S. dollars around the
globe decreases, interest rates will skyrocket. Instead of getting a mortgage at today's incredibly low rates of around 3%, it might cost you 8%...
or even 10%... or 15%.a reply to: knightsofcydonia