Forbes magazine is reporting that the U.S. dollar is collapsing. Quoting from the article:
“The U.S. Dollar has reached its lowest point against the Euro this year due to a myriad of forces including rising global stocks and commodities prices, low interest rates, and investors diversifying out of Treasury debt and into other assets including U.S. stocks.”
“The dollar’s fall follows a United Nations report released Monday calling for a reduced role of the dollar as the world’s primary reserve currency. This is not the first time the U.N. has called for this, but it’s the most recent.”
“What the U.N. may be trying to do is eliminate global dependence on the dollar. However, more details would be needed on the mechanism for adjustment to judge how it would affect the global currency markets.”
Okay, the U.S. Dollar is collapsing. No surprise. You can not use deficit spending to fix deficit spending. The U.N.’s solution is to encourage other countries to drop the U.S. Dollar as their reserve currency.
Bloomberg News has reported that the current commitment to the Bank/Business Bailout is around $23.7 Trillion. The Gross Domestic Product (GDP) of the U.S. last year was around $13 Trillion. Tell me how a country can commit almost twice its GDP in a year’s time and still survive? It can’t. The U.S. Dollar is history. Everyone outside the U.S. realizes that. It’s the U.S. citizens who don’t.
I think the U.S. Dollar will collapse and there will be some kind of global currency that will be offered as the solution. Something that will be lauded as the fix for everything. However, all this money has gone out for the Bailout and nothing has changed. Banks are still hoarding money because the Federal Reserve is paying them interest to hold onto it (the Wall Street Journal reported this in Oct. 2008).
All in all, this means there are going to be some pretty rough times ahead. Please do what you can to prepare now while you still have time. Store some freeze dried food, basic stables, canned goods, store water, and get a high quality water filter as a backup.
Here is the link to the original Forbes article: