Due to the government’s exorbitant spending, a major collapse of the U.S. monetary system is predicted. What is going on?
The American government is spending unnecessary money at a rate of $200 million every hour of every day. This information was taken off the National Balance Sheet.
In 2008 when the U.S. banking system collapsed, the world government absorbed all the bad debts and this practice is still continuing.
In 2013, public debt has more than doubled before President Obama took office. This figure does not include the other $5 trillion government agencies and private companies the government has also taken over, making America’s debt figure soar over the $20 trillion mark. Again, over half these debts were assumed under Obama’s role as president.
The U.S. has more government debt than any other country in the history of the world. The European union combined has incurred less debt than the U.S. alone.
If this is not stopped, the costs to maintain our debt will skyrocket.
The Federal Reserve interest rates are going down to zero. Since 2007, the Federal Reserve interest rate has been lowered 10 times, going from 5.25 percent down to zero to .25 percent. For the government to avoid paying these trillion-dollar costs, they practice policy currency manipulation by ordering the Federal Reserve to prevent interest rate increases, stimulating the economy by deficit spending. Tax revenues would then produce a surplus.
Today, Americans sense an economic recovery, which is just what the government intends. The government does not want the American people to know about the collapse in the U.S. monetary system.
The U.S. is the only debtor in the world that can print United States money. The U.S. dollar forms the basis of the world’s financial system. By printing currency to pay its debts, the U.S. cannot go broke, or so the people are led to believe. This process has been used since March 2009.
Some might say that this system is beneficial, right?
U.S. money is accepted worldwide. All the U.S. must do is borrow and print the currency, unlike other countries where their capital must at least match U.S. currency standards.
The problem is that the U.S. is the biggest debtor owing more money than any other government entity worldwide. As other countries now understand the U.S. tactics for paying their debt, other countries will either stop accepting U.S. currency as payment, or discount the value of the dollar.
Zha Xiaogang with Shanghai Institutes of International Studies says “The shortcomings of the current international monetary system pose a big threat to China’s economy.”
China is attempting to phase out U.S. currency because of the American government’s mismanagement of our currency system.
The New York Post agrees that the U.S. dollar is losing its world reserve currency status. When the currency is devalued, the economy catapults. The U.S. exchange value has fallen 10 percent since June 2010 and the fall is accelerating. The more money we print, commodities increase.
If this is such the case, why doesn’t the government stop printing money? The answer, without the money, the U.S. government cannot afford to pay its debts. And when U.S. currency looses status all the markets in the nation are destroyed. Commodities will rise, interest rates will skyrocket, stock prices will plummet by possibly 40% with massive inflation affecting billions of Americans.
Instead of cutting costs and reducing spending, the government is narrowing the tax base by printing billions upon billions of dollars. While this formula has been attempted throughout history, the principle has never worked. Government spending is beyond its means and the people are being lied to about what is happening.
Because of this, city schools are being closed because of lack of funds, street lights are being turned off in the cities with some prisons electing early release for prisoners.
Countries around the world are beginning to further themselves away from the U.S. monetary system. The International Monetary Fund (IMF) is proposing to replace the U.S. dollar with Special Drawing Rights (SDR’s) and is coming soon. A secret meeting between some of the most powerful countries in the world such as China, Japan, South Korea, Saudi Arabia (for which the United States was omitted) to discuss a universal world currency.
The U.S. is losing its place as the World Reserve Currency when no other country will accept our currency and we can no longer print money.
This idea of this happening to our country seems unrealistic to Americans, but the collapse of the U.S. monetary system suggests that America’s day of reckoning is about to arrived.
Written by Lisa Graziano