As widely praised and widely quoted financial analyst Martin Weiss says, insane government spending, massive debts, out-of-control money printing, and almost unimaginable political cowardice are about to exact a heavy toll from each of us. And now, as our massive debts begin to implode, and as the US dollar plunges in value worldwide, everything in your life is set to change --radically. Millions more Americans are about to lose their income, their savings, their buying power, and their homes. Just about everything you buy -- food, energy, clothing and more -- will soon double, triple, even quadruple in price.
Consider first where we are coming from
In the 218 years since the US dollar was born in 1792, the United States has suffered through:
- A civil war that devastated the nation's finances ...
- A flu pandemic that killed at least 50 million people worldwide, shutting down the US economy,
- A dust bowl and depression that left millions homeless and unemployed -- the worst US financial disaster of the 20th century.
- Ten major foreign wars and 44 recessions that have destroyed hundreds of thousands of businesses and millions of jobs.
And yet throughout all these disasters, the US government has NEVER abused its money-printing power like it's doing today! Like a mad counterfeiter, cranking out mountains of $100 bills to feed America's outrageous debt addiction, Federal Reserve chief Ben Bernanke is running amuck. Consider that back in 1999, when the Fed feared that a computer bug would destroy the banking system, Fed chairman Greenspan pumped in what the experts at that time thought was a huge amount of money. Then, after the 9/11 terrorist attacks, the Fed AGAIN pumped in what the experts said was a huge amount of money at that time.
But now, just look at any graph of the amount of money in circulation as a function of the time that has elapsed over the past 30 years. Today, Fed Chairman Bernanke's mountainous levels of new money printing makes all those previous money printing episodes look like tiny hiccups. The horrific truth is that the US Federal Reserve is now engaged in the greatest money-printing scheme since the Weimar Republic in Germany! That's when the German government printed so much money, it ultimately took THREE TRILLION marks to buy a single US dollar. And so it was that the seeds for the most destructive war in the history of mankind were planted: Hitler promised, and delivered, an economic way out. But the ultimate cost of his aggression was rather severe: Sixty million people then lost their lives, and property damage ran into the trillions of dollars.
It's hard to believe that such inflation could be happening again. But consider these facts:
From September 10, 2008 through the end of 2010, the Federal Reserve chief increased the nation's monetary base from $851 billion to $2.03 TRILLION!
That's an irresponsible, irrational, absolutely insane increase of 139% in America's monetary base in just 27 months ...and there's literally NO END IN SIGHT! And the Fed is, in effect, STILL running the money printing presses 24/7! Even worse, Fed Chief Bernanke has made it crystal clear that he will CONTINUE burying the world in newly created dollars to finance our record federal deficits!
So, with no real end to this madness in sight, global investors have been dumping dollars on a massive scale, sending the value of the greenback into a nosedive. And believe it or not there's an even more terrifying threat to the US dollar on the horizon:
On February 10, 2011, the International Monetary Fund (IMF) disclosed details of its plan to replace the US dollar as the world's reserve currency!
Here's what that means
Right now, the US dollar is the currency used for most international trade and settlements. And because many items sold on world markets can only be purchased with dollars, many countries are forced to buy dollars, whether they like it or not. But now, the Fed's massive "counterfeiting" scheme has the IMF, the United Nations, the central banks of countries from China to Russia, and even the UK demanding a change. Which introduces an even big danger: If a new currency replaces the dollar, the prices of just about everything you buy will skyrocket! -- which means that unless Washington makes DRAMATIC changes, the dollar's value will go into free-fall and will thereby light the fuse on the greatest explosion in consumer prices in our lifetime. Oil prices, gasoline prices, food prices, all could double, triple, quadruple, or more. You could suddenly find yourself paying more than $11 for a gallon of gasoline ... $6 for a dozen eggs ... $5 for a loaf of bread ... $10 for a pound of hamburger and $11 for a gallon of milk! Meanwhile wages would either stagnate or shrink, as recession ensued and employers began massive layoffs.
Skyrocketing food and energy prices would then mean that millions of formerly middle class Americans will be pushed into joblessness, poverty and utter dependence on the government.
How bad could this get? Well, you know about the unrest that overthrew Egypt's government. You've seen the chaos in the streets of Libya, Yemen, Bahrain and even in countries that were supposedly among the most stable in the world. The demonstrators and rioters themselves said that they took to the streets mainly because of soaring food PRICES!
The first massive debt crisis is the massive implosion of FEDERAL debt that's now threatening to erode or even destroy your retirement, your Social Security, your healthcare and more. Our national debt is now over $14 TRILLION ($10 trillion of which was racked up during the presidencies of Reagan and the two Bushes). The White House recently admitted that the 2011 budget deficit will be a record breaking $1.7 TRILLION!