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Major Collapse in American Monetary System is Brewing

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posted on Feb, 26 2011 @ 04:57 PM
So I have been working on an accounting project at university with a friend of mine who has been studying finance and economics.

Just a little while ago, he sent me a link to a video (I think it was made in 2010) about a looming collapse of the American monetary system and why this will be the next crisis post 2008 stock market collapse.

Many of you may know of Porter Stansberry the founder of Stansberry & Associates Investment Research that has become one of the largest and most recognized investment research companies in the world, serving hundreds of thousands of subscribers in more than 120 countries.

LEGAL DISCLAIMER: This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. Stansberry & Associates Investment Research expressly forbids its writers from having a financial interest in any security they recommend to our subscribers. And all Stansberry & Associates Investment Research (and affiliated companies), employees, and agents must wait 24 hours after an initial trade recommendation is published on the Internet, or 72 hours after a direct mail publication is sent, before acting on that recommendation. Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Here are some quotes from the script:

Today, our government owes more money to more people than anyone else in the world.

And that was before the financial crisis!

In short, with all of these bad debts piling up, we've had to begin repaying our debts by printing trillions of new dollars. The impact of this is only just now beginning to be felt.

And once our creditors figure out what's happening, they're going to be very angry.

I believe they 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.

And that will make our consumption-led way of life impossible to afford.

Just think about the price of oil...

Access to cheap oil has been America's #1 gift of owning the world's reserve currency.

This has made gas cheaper in the U.S. than almost anywhere else in the developed world. I know you may think gas prices have skyrocketed in recent years... but look at how much less we pay than other developed nations...
United States: $2.72 a gallon on average

Oslo, Norway: $7.41........ (172% higher)
Berlin, Germany: $6.82.... ( 151% higher)
London: $6.60................(143% higher)
Rome, Italy: $6.40............(135% higher)
Paris, France: $6.04...........(122% higher)
Tokyo, Japan: $5.40..........(98% higher)
Toronto, Canada: $3.81......(40% higher)

And here's the thing...

If oil is no longer priced in dollars, the price of oil for Americans will skyrocket immediately. It will change our lives, overnight.

Airline travel will get much more expensive. The cost to ship goods by truck to grocery stores around the country will get much more expensive. Farming itself will get a lot more costly... so will commuting to work... taking a taxi... just about everything we do will suddenly get much more expensive.

And just remember: In order for prices to start skyrocketing, all that has to happen is that other countries start preferring payments in something besides U.S. dollars.

The U.S. dollar has been the world's currency for decades now... so most Americans don't have a clue about what the repercussions are of losing this status.

You might think this could never happen... but it happens all the time when countries get too far in debt or when they consume too much or produce too little.

The price of gold is up 85% since the financial crisis. Oil prices have doubled. Soy beans are way up. Copper prices are up more than 170% since 2009. Cotton prices are up 80%... in just the past few months, since July of this year!

Just to pause a bit, even Donald Trump has made a comment about oil prices surging in the next few years when he made his political campaign speech earlier this month:

Check out 7:45 min into his video

The states can't print money... but the Federal government can (at least for now). And for the moment, this is all that is preventing a currency collapse of unprecedented proportions.

And this is the important point: What most people don't realize is that the U.S. government can only continue printing dollars... as long as the U.S. dollar remains the world's reserve currency.

In other words, this is all going to fall apart much sooner than people think. In fact, it's already happening...


Today, however, the government calculates unemployment mainly by counting the number of people receiving unemployment benefits. So when people's benefits expire, they are no longer counted... and the unemployment rate actually falls! Ridiculous... I know.

But the reality is, the true unemployment rate is much, much higher than what the government is reporting.

Few Americans today realize that we have the second highest corporate tax rate in the world. And since Japan's new prime minister just announced that he plans to reduce the country's corporate tax rate by 15%... the U.S. will soon have THE highest corporate tax rate in the world.

As The Wall Street Journal reported:
"Over the last year the stock market has followed a path eerily similar to 1937. First, a strong, rapid run to a recovery high – same pace, same magnitude. Then a correction – again, the same. Will we continue on the path that led the correction of 1937 into a collapse in 1938?

I don't know if anyone has dove deep into this issue or if there is any new information that has surfaced on this since it was posted online. What are your thoughts on the current economic state of the American economy?

Moreover, Alex Jones recently had an interview with Lindsey Williams about how currency is related to crude oil...very interesting currency conspiracy:

Lindsey Williams : China 'The Big One' in the U.S. Republic's Overthrow

Check out the video form 5:00 minutes onward. Get ready America for a BIG spike in gas prices....

edit on 26-2-2011 by Skywatcher2011 because: (no reason given)

Furthermore, did you know that your federal government has just mortgaged pretty much all of your homes and businesses over to China?

edit on 26-2-2011 by Skywatcher2011 because: (no reason given)

posted on Feb, 26 2011 @ 05:22 PM
What on earth are you talking about? More money equals better money. The more dollars there are, that means that we are winning the battle against China or some other evil. Every time someone talks about the US going down the tubes, I pull out a dollar, stuff it with tobacco - if it is before noon - and smoke it. I go back to sucking on my beer and watching 90210 & WWF reruns. Everything is okay.

Nice post. We are seeing more and more information come out everyday that points in this direction. Actually, it is most likely by design. For those that follow silver and gold, the COMEX should bust in March, but with all the paper money around, it may be papered over.

edit on 26-2-2011 by alyoshablue because: typos

posted on Feb, 27 2011 @ 02:34 AM
Thanks for posting , not sure which angle you are comming from though? Is it the shocking facts of the comming downfall that are given , his answers or both ? While the facts are very accurate, I disagree with the answers he offers and the hard sell of his (tongue in cheek) free products .I one hundred per cent agree with the history given and the current developing facts .However the narrator tells you how the Goverment outlawed gold (historical fact) but then tells you to buy gold !His whole pitch is look at the past ,now look how the past is reoccuring.So why would you by gold if history says it will be outlawed and confiscated ?Very conflicting logic ! However the reality is if there is no food and I had some and this narrator offered me gold for it I would say no thanks I'll eat my food and you can eat your gold ! Gold,money or any other currency is a man made construct and not a fundamental nessesity .Don't get me wrong OP I apprieciate the post and wish more would see it to prepare .
edit on 27-2-2011 by 13th Zodiac because: (no reason given)

edit on 27-2-2011 by 13th Zodiac because: (no reason given)

posted on Feb, 27 2011 @ 04:50 AM
reply to post by 13th Zodiac

Yep like I said on another forum, in very VERY simplistic terms albeit, you have a limitless supply of gold, I have a limited supply of bread. You can keep you gold because I can't bloody well eat it, but the bread, it is worth so much more in a desperate situation where food shortages are rampant.

posted on Feb, 27 2011 @ 08:42 AM
When I read these threads where people bring up the gold versus food issue, I have to ask them if they are really thinking it through, or are they writing a statement that makes them feel better about not being able to or wanting to by gold.

First off, people that are buying gold are probably buying food as well - not to mention guns and gas, etc. Second, by the time we get to a gold or silver confiscation, FIAT dollars will have lost almost all their worth against gold or silver, so FIAT dollars will be worth zero. That process could take a year or so, where food prices have already surged in FIAT terms. So, those with precious metals have the advantage of selling that metal for inflated FIAT and then used to purchase food in terms of cost equivalent in today's value, where people holding FIAT will have already lost the value.

Finally, in the case the gold is confiscated, hopefully you have transitioned your wealth just prior to the event, into another commodity, thus preserving your "wealth." If you haven't transitioned prior to a confiscation, then at least you would fair better with a new currency with respect to gold versus old FIAT. Make sense? All you are looking for is a method to preserve your wealth, that is all.

I think people think in a SHTF moment, we will be walking around like zombies trading gold and silver. To me, that is a pipe dream. However, if you are strapped for cash, I say the best foundation to build upon is first the food - that's a no brainer. Then, you can at least work towards a silver base. Regardless, even though I have prepared the best I can, I don't hold the perspective that in a SHTF reality, that people would be only be out for themselves. As my family is doing now, we are helping out our friends and community the best we can and we haven't even begun the ride. I hope the system fails beyond recognition, where we rethink that crap that got us here and outlaw such behavior from ever happening again.

posted on Feb, 27 2011 @ 08:52 AM
reply to post by Skywatcher2011

The first video you posted is being promoted on several radio stations in the Dallas area. I hear commercials for it several times a day. Honestly I didn't listen to the entire thing and wonder what it is exactly that they're selling. They're advertising fairly heavily for people to watch this video.

posted on Jun, 23 2011 @ 07:35 AM
reply to post by dbates

Seems strange that rich people spent their money to warn Americans even if it meant facing the government. What they are saying is valid and if people do not prepare then you will be swept up in this debt and be forced into the governments ways of living. The American dollar will not be worth the paper its printed on. The American dollar has fallen bellow Canada's dollar. That's saying something when they have mostly stayed ontop by a I'll at the least. I wonder who America owes their debt to because if its China, say good by to your homeland, they will repo it. Otherwise as many have seen in the past.. Americas solution is simple, WAR. War = Money. It also gives them reasons to change their system because of (security) reasons. America spends the most on their military in the world (as far as stats show) but they need to upgrade further? riiiiiight.. because Americas not safe from their hired guns that they claim terrorize your way of living.

Ever heard the word traitor or treason? well it needs to be used in court again because if your own leaders do not follow the rules they pledge to uphold then they are against America and not for it. Their only for themselves then your in a sinking ship and the only way out is to get rid of the dead weight(them). Justice will come, karma will be swift and they will have to own up for their crimes.

Greed is such a deadly sin and this company is showing people greedy America for what it is and what it will be, if people can't see that its because they are submissive and/or a follower. Find the truth for yourself, it wouldn't hurt to be at least prepared for the food crisis let alone the fact American currency is going to have tiny value.

P.s. Ever see that commerical on tv where that guy will buy your old gold jewlery for cash through the mail? I have and now that he has collected gold for a while he is asking for all the silver. Giving you paper in return for your metals. Wonder why hes doing that? The big picture is painted, you can deny it and accept it even it or you can paint your own while you have a brush and canvis to paint with. Peace and good luck.

posted on Jun, 23 2011 @ 08:50 AM
Ive allways been thinking that they wouldnt stop of recession, they would crash it down further into a depression.

posted on Jun, 23 2011 @ 09:17 AM
Just prior to the 2008 President Election Saudi Arabia announced they were going to cease accepting US dollars for oil and start the Gulf Monetary Union.

The CIA got Barrack Hussein into office to appease the Sauds....they got their Victory Mosque for their successful attack on the World Trade Centers...all their debt was paid off.....and Obama gave them $60 Billion in military hardware.

Look what else they got....the Saudi Riyal is no longer pegged to the US dollar.

You need $4 US dollars now to get 1 Saudi Riyal. Saudi Royal Family won.

posted on Jun, 23 2011 @ 09:27 AM

Originally posted by Pervius
You need $4 US dollars now to get 1 Saudi Riyal. Saudi Royal Family won.

No, you have it the other way around. The current rate is 1 U.S. Dollar = 3.75 Saudi Riyal.

Source - Google Finance

There was a dip in 2007 but honestly the prices is about the same as it was when I was there back in 1991. I always felt rich when I would exchange dollars for riyals just by virtue of the huge wads of money you could get exchanging. The exchange rate is about the same today as it was then

posted on Jun, 23 2011 @ 09:35 AM
All closed systems must collapse, so this is pretty obvious.

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