August 27, 2013
By Eliseo Santos
Many economic and financial experts believe the United States economy and the dollar are on the brink of collapse. Like a ship whose hull has been damaged, the United States economy is slowly sinking into an economic depression that has potential to cause a global economic crisis.
The Facts and Numbers Don’t lie
The following facts obtained from Zerohedge.com are bleak and sobering for Americans to read:
1. During President Obama’s first term, the federal government accumulated more debt than it did under the first 42 U.S presidents combined.
2. Back in 1970, the total amount of debt in the United States (government debt + business debt + consumer debt, etc.) was less than 2 trillion dollars. Today it is over 56 trillion dollars…
3. According to the World Bank, U.S. GDP (Gross Domestic Product) accounted for 31.8 percent of all global economic activity in 2001. That number dropped to 21.6 percent in 2011.
4. The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.
5. When NAFTA was pushed through Congress in 1993, the United States had a trade surplus with Mexico of 1.6 billion dollars. By 2010, we had a trade deficit with Mexico of 61.6 billion dollars.
6. According to the Economic Policy Institute, the United States is losing half a million jobs to China every single year.
7. According to the U.S. Census Bureau, 49 percent of all Americans live in a home that receives direct monetary benefits from the federal government. Back in 1983, less than a third of all Americans lived in a home that received direct monetary benefits from the federal government.
8. There are now 20.2 million Americans that spend more than half of their incomes on housing. That represents a 46 percent increase from 2001.
What’s Being Done to Avert the Collapse of the Dollar?
Since the Collapse of 2008, the Federal Reserve has been using a monetary economic policy called Quantitative Easing. QE allows the Federal Reserve to print more money in order to keep the U.S. dollar and the world reserve currency afloat. The Fed’s QE will eventually cause inflation, which is the increase in the general prices of goods, services, and commodities (such as food, oil, energy, gasoline, public transportation, etc.). Inflation occurs as a result of more printed U.S. dollars in circulation that causes the value of the U.S. dollar to decrease, and therefore more U.S. dollars would be needed to buy physical goods and commodities. The Federal Reserve buys a majority of U.S. bonds that are out in the market in order to keep the value of the dollar stable and to mitigate the risk of inflation. In other words, the Federal Reserve becomes the owner of the U.S. government debt, and therefore the government continuously pays the Federal Reserve to print more money.
Despite the measures the Federal Reserve has taken to prevent the U.S. economy from collapsing, it has caused problems in the international markets. The Fed’s use of quantitative easing has angered many nations such as China, Russia, Iran, and others. They claim the Federal Reserve QE causes foreign currencies to inflate in response to the increase of the U.S. fiat dollar in the global markets.
The U.N. Solution To The Collapse of The U.S. Dollar
Due to current global economic concerns, the United Nations has proposed to institute a new international currency. This new world currency would replace the U.S. Dollar as the current world reserve currency. After the switch to this new world currency system, market rate exchanges between countries would be under the control and manipulation of the United Nations through the International Monetary Fund (IMF).
The U.N. Conference On Trade and Development (UNCTAD) proposed this new global currency system in April 2012 and published a report entitled “Adapting the International Monetary System to Face 21st Century Challenges.”
One of the members of the U.N. Conference Detlef Kotte commented on the U.N. recommendation saying, “Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability.” He went on to say, “But you will also need a system of managed exchange rates. Countries should keep real exchange rates [adjusted for inflation] stable. Central banks would have to intervene and if not they would have to be told to do so by a multilateral institution such as the International Monetary Fund.”
In 2009, then Russian President Medvedev showcased a coin that is envisioned to be the new global currency at the G8 conference. Kotte signaled that United Nations would be ready to implement the transition to a new world currency system in the event of the collapse of the U.S. Dollar and the global financial crisis that would ensue.
Kotte said, “There is an increased consciousness that future crises cannot be avoided unless there is an overhaul of the financial and monetary system. What is at least encouraging is that, should another crisis happen in the coming years, at least the work is now starting to be done to come up with a superior system with which to replace the existing, battered, misshapen mess that Bretton Woods evolved into over the past few decades.” In other words, the collapse of the world reserve currency, the U.S. Dollar, will open the way for the new one world currency and international monetary system.
The serious prospect of the collapse of the U.S. Dollar should motivate you to make appropriate preparations in the event of bank holidays, bank runs, and not being able to access your money when you need it. If the United Nations is preparing for the Collapse of the U.S. Dollar, then you should as well.