Before anyone states this posting has no business in the Ec forum I want to clarify that it does if you are an expat and receive your income from US investments or pensions and have it in Dollars.
Its a collection of statements from various reports to alert some of you of what is happening and why you may want to be concerned and look into it furhter or take a protective action. The origin of this info its not important only the food for thought it provides. For some of you who wish to pursue in detail this information can be acquired from various US government organizations.
Although quite long its worth while reading for those of you who have your investments in the US or in Dollars. After reading you may want to ask yourselves a few questions on how well prepared you are financially especially if you are a retired expat.
DEBASING THE CURRENCY: A Time-Honored Tradition
This is the path politicians have followed time and time again when confronted with unpayable debts:
When Rome began to fall, the denarius plunged to ONE FIFTIETH of its former value before becoming worthless.
When the Byzantine Empire faced overwhelming, unpayable debts, the Bezant was devalued until it was worth zero.
When the British Empire declined, the pound lost 80% of its value.
At the beginning of World War I, it took 4.2 German realmarks to buy one U.S. dollar. By August 1923, it took three trillion realmarks to buy one greenback.
In April of 1933, Franklin Roosevelt effectively devalued the dollar by 75% simply by raising the official price of gold.
And similar currency devaluations have happened more recently in Brazil, Chile, Argentina, Malaysia, Thailand, Russia, Indonesia, Zimbabwe and a host of other countries all over the world.
• Why the U.S. government has no choice but to effectively DEFAULT on its massive debts — by paying them off with cheaper dollars ...
• How this great debt default is already gutting the buying power of your money and could double your cost of living — or more — in the months ahead ...
Since March of 2009, the value of every dollar you have saved, invested or set aside for retirement has plunged 15%. A greenback that was worth $1.00 just seven months ago is now worth only 85 cents
• Just in the last seven months, gold has surged 14%, crude oil is up 96%.
• Raw materials needed to manufacture most products you buy are also rocketing higher. Copper is up 88%. Aluminum is up 38%. Nickel and Cadmium for the batteries in your cell phone and computer are up 93% and 18% respectively.
• Cotton is up 45% and wool is up 24%, which can only drive the cost you pay for clothing higher. Food imported from overseas is already soaring: Coffee and tea are up 26% and 42%. Oranges are up 41%. Sugar is up 71%. Olive oil is up 14%.
• And as the dollar continues to dive against foreign currencies, you can expect all your other expenses to rise as well.
Washington now has no choice
but to DEFAULT on its massive debts
by crushing the value of your dollars
REASON #1 — The federal deficit is now EIGHT TIMES LARGER than it was in 2007.
federal deficit for fiscal year 2007 came in at just $161 billion
And just a few days ago, Washington revealed that the deficit had exploded to $1,400 billion ($1.4 trillion)!
That’s an outrage: A 770% increase in just three, short years!
REASON #2 — The “official” national debt has more than DOUBLED since 2000: It took more than two centuries — 224 years from 1776 to the year 2000 — for America’s national debt to hit $5.7 trillion.
But it has only taken Washington only nine years to pile up another $6.1 trillion in debt: Today, the national debt stands at $11.8 trillion
REASON #3 — Deficits as far as the eye can see will likely double the national debt again by 2019:
REASON #4 — The TOTAL national debt is nearly NINE TIMES LARGER than Washington claims. When reporting the national debt, Washington conveniently leaves out the $104 trillion the government owes to seniors and veterans through Social Security, Medicare, Medicaid and veterans benefits programs.
All told, Washington is now
a staggering $125.8 TRILLION in debt!
The bottom line ...
The U.S. government’s debts are
PATENTLY UNPAYABLE!
Washington has no choice but to crush the value of your money, then pay its bills with cheaper dollars:
The ONLY path left is for Washington to effectively DEFAULT on its obligations — by paying them with cheaper dollars!
For Washington to crush the dollar, no new laws need be passed; no new policies need be put in place. In fact ...
This intentional destruction
of the U.S. dollar
has already begun.
Fed Chairman Bernanke is already cranking up the printing presses — printing money like there’s no tomorrow — and then using that new, unbacked money to buy not only Treasury bonds ... but also $941 billion in mortgage-backed securities!
According to the U.S. Treasury Department, Washington now owes $7.9 TRILLION to foreign investors and governments.
Those debt instruments and obligations are now worth 15% less than they were just seven, short months ago. And of course, the interest on that debt is now being paid with dollars that are also worth 15% less.
Unsurprisingly, foreign governments, central banks, financial institutions and investors are fed up with this state of affairs and are now planning veritable lenders’ strikes with the potential to slash world demand for dollars — and with it, the dollar’s value
That is why:
China — by far the largest holder of U.S. debt — has repeatedly announced that it is diversifying OUT of dollars, preferring currencies that are not evaporating before its very eyes.
Members of the G-20, the International Monetary Fund and the World Bank have begun calling for the dollar to be replaced as the world’s reserve currency.
•
• The United Nations has just issued a monumental, game-changing report that recommends the establishment of a new “Global Reserve Bank” or a reformed IMF to issue an artificial reserve currency — a “global currency [that] would be backed by a basket of currencies of all the members.”
The choices you make NOW
could make all the difference for you
This is the reality. These are the cards you’ve been dealt as an investor.
But it’s also very personal: When your money is devalued, your wealth is diminished. Every dollar you have buys less — everything costs more. Your standard of living is threatened; your quality of life, reduced.
Wage earners and investors who hide their heads in the sand while their own government devalues their money will suffer enormous financial pain. Retirees and anyone approaching retirement who plan to live on fixed incomes could be wiped out.
The only choice you have is whether you’ll ignore this reality — bury your head in the sand and risk massive losses as your buying power plunges and your cost of living soars ...
Or whether you’ll take a stand to defend your savings, investments and retirement.
Make no mistake: This is the greatest confiscation of personal wealth — YOUR personal wealth — in history.
When your money is devalued, your wealth is diminished. Every dollar you have buys less — everything costs more. Your standard of living is threatened — your quality of life reduced.
Put simply, THIS IS PERSONAL: In similar circumstances, the British pound plunged 80% after losing its reserve status.
That's important to understand: When the value of your money plunges 80%, nearly everything you buy — food ... energy ... and most of life's other necessities — COSTS YOU FIVE TIMES MORE!
Even if the U.S. dollar fell only HALF that far, everything that's produced or manufactured with materials from overseas would cost you nearly DOUBLE!
Imagine: Oil and gasoline ... food grown overseas ... and four-fifths of the products on Wal-Mart's shelves ... selling at TWICE today's prices!
Make no mistake: Wage earners and investors who hide their heads in the sand while their own government devalues their money will suffer enormous financial pain.
Worse: If you're retired or approaching retirement and plan to live on a fixed income, hedging against this great dollar disaster is NOT optional — it's a matter of survival!
The ONLY way to protect yourself is to take action: To hedge against this great dollar disaster with investments that effectively replace what's being confiscated from you.
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