The Dollar: Saved or Doomed?
2004 06 02
by Victor Thorn
If the American economy has any hope of surviving (and thriving) into the future, we need our currency to remain solid enough that people won’t be wary of it, or investors won’t be afraid to invest in it. Regrettably, many people in the private sector such as Warren Buffett have already abandoned the dollar and placed their money in foreign exchange markets. Thus, our mammoth federal deficit is now largely being carried by Japanese, Chinese, and Indian central banks that are holding dollar reserves simply to keep their own currency stable, or to insure that their exports to the U.S. won’t skyrocket in price.
Even someone who hasn’t taken Economics 101 can tell that this precarious situation doesn’t bode well for our country. Not only is the dollar being devalued, but ever since Richard Nixon eradicated the gold standard in 1971, our money no longer has any foundation. In other words, our entire fiat money system is debt-based, with no roots. If our political and financial leaders decide that we need more money (the entire basis of deficit spending), they simply print more! It’s that simple.
Anyone who has studied this subject realizes that things weren’t always this bad for the U.S. In the past our dollar was healthy, while at the same time America was seen as a strong, moral leader that confidence could be placed in. But now, as the U.S. is being used and undermined by the globalist elite because it can no longer be economically exploited like China, India, or other third-world nations, there is less loyalty shown toward our dollar. This situation is magnified every time we see another Abu Ghraib, war blunder, or political faux pas.
In addition, our dollar now has some very real competition from the euro, which is being pushed by a European Union that wants to reign supreme once again. Luckily, at least for the time being, the entire world must stockpile dollars to buy OPEC oil, which is the only form of payment they will accept due to a secret agreement in the early 1970s between Richard Nixon, King Fahd, and Henry Kissinger (see The New World Order Illusion). But if the powers-that-be ever decide to renege on that pact and switch to the euro, our dollar is quite literally doomed. As things stand now, the entire world is essentially subsidizing our economy because they need our dollars to buy oil. But if this tenuous situation is altered and the euro is substituted, the bottom will drop out immediately for us.
Thus, as the demand for dollars decreases, more private and foreign investors will demand that we pay our debts (i.e. our ballooning deficit). Without any of this money physically on-hand, the Treasury will have no other alternative but to print more dollars, which will cause skyrocketing inflation ala Nazi Germany before World War II. As I said, our only saving grace is that Asian and Indian central banks are still financing our debt; but that may be about to change as they eye the euro. The primary reason why these institutions and governments are leading a worldwide exit strategy from the dollar is that they’re nervous about the risk surrounding our currency.
What we see, then, is that the Globalists are leading a charge to dump the dollar; while the European Union, Asia, OPEC, India, and Russia are following suit. And what are our supposed leaders doing about this exodus? Are they entirely oblivious? Of course not. But they can’t let the American people know about it or pandemonium would ensue. So, they keep manipulating U.S. fiscal policy, the stock market, government figures, and interest rates in hopes of delaying an almost inevitable bubble-burst in the future. It can only expand for so long with our deficit, social security woes, and out-of-control spending until – POP!
To combat this catastrophe, the American people need to realize and accept one very vital point – our current political leaders are deliberately letting things go down the tubes to destroy the United States as we know it. I realize these are very strong words, but via their astronomical spending, our nearly insurmountable debt, in addition to the horrendous trade agreements and ill will that we’re promoting worldwide, we are literally being sold down the drain. The only question now is, will everyday citizens pay heed to the warning signs around them and act to make changes, or will we let our greatness slip away into the dustbin of history?
Article From: http://18.104.22.168/thornarticles/dollar.html