By Paul Chong Sunday 6 December 2009
(A composite report from reliable sources)
“Capitalism creates a rational frame of mind which, having destroyed the moral authority of so many other institutions, in the end turns against its own.” – Joseph A. Schumpet
Environmental experts recently called toilet paper
“one of the greatest excesses of our age.”
Once the pride & might
Its collapse is now in sight!
This is not just theory. It’s the real thing! Let’s hear from the experts:
US billionaire & investment guru, Jim Rogers, influential former partner of financier George Soros (The World Today Dec 3, 2009) is advising investors to desert the greenback and put their money into commodities. He says the US dollar is a flawed currency that has no future.
Nobel Prize winner Dr. Paul Samuelson, hardly an alarmist, has characterised U.S. financial imbalances as so severe and “irreversible that we must accept that at some future date there will be a run on the dollar. Probably the kind of disorderly run that precipitates a global financial crisis.” . . . while other monetary experts now warn, “We’re in the terminal stages of the world’s most gigantic pyramid scheme.”
Or as Dr. Ron Paul, a member of the U.S. House of Representatives, recently noted about the rampant, unprecedented money creation going on, “If we continue doing what we are doing right now, we will literally destroy the dollar.”
The first dramatic debt growth spurt of US debt-based approach financing system occurred with the Civil War. The debt was just $65 million in 1860, but passed $1 billion in 1863 and had reached $2.7 billion following the war, slowly fluctuating for the rest of the century, finally growing steadily in the 1910s and early 1920s to roughly $22 billion as the country paid for involvement in one war after another – wars which they never did win.
When compared to hard money backed by gold or silver, this debt-based approach has the advantage of making the currency elastic, giving the government a means of expanding or contracting the money supply in response to changing economic conditions. The disadvantage of this approach is inflation. The money supply must be continually expanded in order to finance interest payments on the debt by which it is issued. This devalues the currency, causing inflation.
All signs point toward the U.S. dollar – already down one-third against other world currencies since 2002 – heading at breakneck speed for a precipitous and historic crash.
While all global currencies are falling against tangible
assets, the US Dollar is falling faster.
Unmistakable warning signs reveal here point to a monetary crisis on the verge of spinning wildly out of control, leading to massive INFLATION and quite possibly, a sudden and catastrophic dollar collapse that will forever change US nation.
Mr. Obama, in a recent cable news interview during which he tried to rationalize his multi-trillion dollar spending spree, conceded with a chuckle,“we are out of money now. We’re operating in deep deficits…” This admission came only a few months into his term, and even before he committed upwards of $50 billion more in U.S. taxpayer funds to bailing General Motors out of the hole!
Major foreign investors such as China are quickly catching on to the hard reality of US insolvency. Inescapably, they’re concluding that the “only way Washington can keep its Ponzi finance going is by running the monetary printing presses non-stop.”
Mega-investor Warren Buffett recently admitted publicly that the frantic spending and money creation underway right now will trigger a currency-destroying inflation that will be much more severe than in the 1970s.
Big-time investment gurus such as Jim Rogers dispatched a strongly worded email offering this sobering assessment:
“The world at large does seem to understand innately that governments are bankrupting themselves and destroying paper currency.”
The sheer havoc unleashed by a dollar crisis will be nationally jolting on a par with Pearl Harbour, John F. Kennedy’s assassination and 9/11. And yes, the bottom could drop out in just a single harrowing day.
The coming dollar collapse will wreak economic and social havoc far beyond skyrocketing prices. Widespread fuel and food shortages, relentless crime waves and the government’s endless socialistic machinations will devastate the American way of life like a giant tornado.
With US main creditors & all the global supporters pulling out,
there will be a catastrophic tsunami unimaginable.
Just this week, US Fed Chief Ben Bernanke declared the US economy is facing “formidable headwinds” & effectively vowed to continue its relentless printing paper dollars.
China’s Andy Xie, recently named by BusinessWeek as one of China’s most influential economists, quickly reacted with the accusation that Bernanke was “poisoning” the US economy by keeping interest rates near zero & creating a tidal wave of newly printed paper dollars. He warned that the next global crisis will be driven by asset inflation . . . which is exactly the present scenario.
Incidentally, toilet roll goes off very quickly towards its end!
Being at the top is not good, there is only one
way to go from there – down.
- What they are talking about are US Federal Reserve Notes (barbaradiamond.blogspot.com)
- Gold vs. the Greenback (lewrockwell.com)
- Betting against the U.S. dollar (theglobeandmail.com)