Economic Meltdown Imminent?


In the United States, a gentleman by the name of Jim Rickards, who initially started Project Prophecy after the 9/11 terrorist attacks against the World Trade Centers, which has previously prognosticated the 2006 terrorist attacks in Britain, as well as other international and domestic economic and terrorist complications, foretells of a supposedly fast approaching economic meltdown of the U.S. financial infrastructure. In an interview with Steve Meyers, the host of Money Morning, he discusses in-depth what all 16 U.S. intelligence agencies are now preparing for, and have also “issued an alarming report,” in view of an inexorable 25-year economic depression.

In the interview, Rickards mentioned that some of the involved, and more commonly known agencies, in conjunction with the Central Intelligence Agency, Federal Bureau of Investigation, and American Navy and Military, have already began estimating the possibly devastating impingement of the global reserve currency – the U.S. dollar. He said, “our reign as the world’s leading super power being annihilated in a way equivalent to the end of the British Empire, post-World War Two,” Moreover, he explained, “the end game could be a nightmarish scenario, where the world falls into an extended period of global anarchy.” He stated these are just two of the surface factors of what may have really set the fear in the U.S. intelligence agencies causing them to go into motion.

Rickards has admittedly been assisting the CIA, as well as the Pentagon, to prepare for “asymmetric warfare,” and threats to the U.S. financial structure. In the U.S., the Federal Reserve and the Department of Treasury attain the dollar currency, and the intelligence agencies, including the Pentagon, consummate the threats made towards the nation. as a whole. On the other hand, Mr. Rickards raises the question “but what happens when the dollar is the threat?”. His answer to that particular question sums up to the U.S. economy literally crippling under itself, financially. Reasons for this include that for every one dollar of debt, only three cents of that dollar goes towards the GDP, or growth in the economy. Compare that to the $2.41 – or $1.41 gained – for every dollar of debt under the treasury’s belt in the post-WWII era from 1950 to 1960. Therefore, there is the logical fear of the number going into the negatives. This would unhesitatingly destroy the U.S. economy and run it into a crisis that would make history for hundreds of years to come. This would thereby send the U.S. into an estimated 25-year long depression, Rickards said.

Rickards also stated that, “the U.S. is in a depression today.” This is because, statistically, the velocity of American money is significantly lower than it was during the lowest point prior to the Great Depression during the 1920’s, giving more of a threat that the an economic meltdown is imminent. To give an idea, the inflation velocity in the post-depression period was at about 1.6%, and it is presently sitting at around 1.1%-1.2%. He also mentions that, “the velocity of money’s collapse is impossible to stop.” This means that the dollar, not just in the United States this time, but globally, because it is the world’s capital currency. Thus, this would plummet to zero, or remain stagnant for a dangerously extended period of time. Or, whereas some are also lead to believe it would indefinitely collapse and the world’s governments, it would be left in an instance where either a new capital currency would need to be established, or the economic system to be forced to change the world’s reserve currency.

However, to implement more evidence towards the said-to-be approaching economic fear of losing the global reserve currency, countries such as China and Russia, which have already initiated the act of dumping U.S. treasuries months before the Crimean Invasion, are believed to be turning to gold rather than the dollar. They are doing this against fiscal liabilities and a capital currency to speculate with a possibly reliable form of currency. Moreover, they are perhaps engaging in this exercise to extend the possibility of an imminent economic change or fall of the international treasury currency.

Though, aside from Russia and China dumping their United States treasury holdings, which previously stood excess of $1.32 trillion and now sits just above $1.27 trillion, and is still declining, Belgium is starting to purchase them at the same time. This does seem reasonably confusing as Belgium has played an exceptionally minimal role amongst the currency war with all three governments. Though, it is, on the other hand, helping the United States stay economically balanced to some extent. This is because Belgium has purchased hundreds of billions of dollars worth of U.S. treasuries – over $365 billion to be distinct. While the number of treasuries that poise as dumped add up to much more than this number, it is still slightly crucial, in a way. Belgium is only considered a front, as it is merely hindering the federal government. The reason behind this is that it adds up to the fact that the treasury purchases are evidently limited.

All of this does raise alarm and even more fear amongst the intelligence agencies in the United States, because the Federal Reserve is currently leveraged 77 to one, intimating that they are at the pinnacle of what they can currently carry out. The evidence is very extensive and implements more, but epigrammatic evidence from Rickards incontrovertibly shows the dangers and threats that the with which the U.S. is faced, therefore, it is alarmingly distressing that a major economic meltdown is imminent.

Written by Tyler Metcalfe


Money Morning



Photo by Rolf Kleef – Flickr License

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