Cognitive Dissonance Will Not Save America From the Collapse of the Dollar
By Dave Hodges
TheCommonSenseShow.com
June 6th, 2018
I know that most of you are probably tired of hearing about the endless predictions that the US economy is going to crash. Stock up now, buy survival gear, get your food, water, guns, gold, ammunition and medicine! Blah, blah, blah. We have all heard it before. Right?
The Inevitable End
I recently received that dreaded call “rush to the hospital, she only has a short time left, hurry!” So, you arrive at the hospital and the person hangs on, and hangs on, but everyone knows the final outcome is inevitable. The next day arrives and the person is still with us. And then like a thief in the night, our friend finally slipped away and went to be with the Lord.
This is what the economy will soon do. I do not know if it will be next month, next year but I know we do not have five years. This economy is going to die. Why? Because the lifeblood of the economy has been withdrawn.
All currencies must be backed by something of tangible value or that currency will one day jyperinflate and will perish. Extreme social chaos will ensue, followed by martial law and perhaps even a civil war, or worse yet, world war. How do I know? Simple, read your history books, it is always the same in every country that experiences hyperinflation due to haviing an unbacked currency. Think of the dollar like gravity. Without gravity, we would all float out into space and die. Without solid backing for the dollar, the dollar will float out into space and will also die, it is called hyperinfation. The dollar is losing its gravity (ie backing )and is dying. Soon, nobody will be accepting your dollar. for any reason.
How did things get so bad?
Blame FDR for Removing the Dollar from the Gold Standard
In the 1930’s, President Roosevelt confiscated the gold of average people. He did this so his rich friends from the Federal Reserve would have a way to survive the economic holocaust that was killing the dollar.
Roosevelt’s illegal confiscationof gold, was predicated on the principle that in times of economic crisis, gold holds its value and fiat cash does not. In the 1940’s with no gold effectively backing up the dollar,the US economy was only surviving because of ramapant military spending to support the war effort.
In 1943-44, the world’s bankers decided that US dollar (ie petrodollar) would become the world’s reserve currency and an economic giant was born. Every country, if they wanted to purchase oil for their industrialization and war-related rebuilding efforts, would have to first purchase the dollar to buy oil and this, in effect, restored backing for the dollar.
The Petrodollar Replaced the Gold Standard
The United States has debt, crushing debt, which makes the former Weimar Republic look solvent by comparison.
The present national debt as of this morning is over $21 trillion. Which means that every man, woman and child owes over $65,000!
The estimated estimated debt of unfunded mandated liabiities (eg Social Security, Medicare, Medicaid, etc) is a whopping $240 trillion.
The estimated credit swap derivatives debt is impossible to measure but it certainly is possible to estimate. Before Lehman went broke in the 2008 economic collapse, they possessed a $600 billion dollar debt of which $400 billion was purely the credit swap derviatives debt, and that was just one bank! The most common estimate regarding this debt is a staggering $1.5 quadrillion dollar debt with an annual interest debt of over $500 trillion!
The value of money is relative (eg an average house in 1958, sixty years ago, was just under $12,000 with an average annual earnings of $5,500 per American). So, based on the relevance notion, just how much money do the various levels of government take in on an annual basis in 2018? Can they even come close to paying down the debt?
The Rest…HERE
