Cognitive Dissonance Will Not Save America From the Collapse of the Dollar
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 Because the lifeblood of the economy has been withdrawn.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?
Fiscal Year 2017
|Total Government Revenue
in the United States
|Federal Direct Revenue||$3.3 trillion|
|State Direct Revenue||$1.6 trillion|
|Local Direct Revenue||$1.3 trillion|
|Total Revenue||$6.2 trillion|
|Total Government Revenue
in the United States
Federal, State, and Local
Fiscal Year 2018
Income Taxes$2.3 trillion Social Insurance Taxes$1.4 trillion Ad valorem Taxes$1.5 trillion Fees and Charges$0.5 trillion Business and Other Revenue$0.5 trillion Balance$0.0 trillion Total Direct Revenue$6.2 trillion Federal Deficit$0.8 trillion Gross Public Debt
Please keep in mind that the Government Accounting Office does not include the so-called unfunded liabilities of entitlement programs like Social Security and Medicare. Social Security debt is cummlative and the interest compounds. I went back and counted approximately how much raw debt, irrespective of interest owed, how much Social Security debt has been added to the economy since the economic collapse of 2008, and it is over $200 billion. This does not include the 50 states’ burden and as stated, does not account for interest. Keep in mind, that Social Security only represents one part of the “unfunded, but mandated liabilities of social welfare programs”. I know that people will object to the government’s vocabulary in describing this debt because it is viewed by many as an earned benefit. However, we have foolishly let Congress raid the funds over the years. And we are now using “borrowed money” to cover this debt. How will would that work for your family if you borrowed money to pay off your credit card debt?
Keep in mind that the figures, listed above, do not include state and local debt.
And, it doesn’t include so-called “agency debt.”
It does not include the credit swap derivatives debt.
Therefore, these figures represent an unrealistic, grossly optimistic projections for fiscal year 2018.
To those who think that it is “fear mongering” to project the fall of the US economy, please tell me how many of you can sustain an ANNUAL debt to income ratio of 4 to 1? And these are the numbers of a projected economy that is somewhat rebounding.
Oh, but We Have the Petrodollar Says the Cognitive Dissonance Crowd
The cognitive dissonance crowd argues that the Petrodollar somewhat protects us from staggering debt. That was somewhat true in the 20th century.
The United States’ good economic fortune is due solely to the fact that the world must use the dollar, the Petrodollar if you will, in order to make their nation’s individual oil purchases and this provides the only source of backing for the U.S. dollar. That was then and this is now. The game is over.
Despite the economic pain associated with the enormous debt caused by the Wall Street contrived Ponzi schemes associated with the now infamous derivatives, America’s economy has proven to be very resilient. However, if the artificial global dollar demand, made possible by the Petrodollar system, were ever to crumble, our days of economic dominance would abruptly end and the resulting economic chaos would be followed by the need to impose martial law on a starving public. Again, tens of millions of Americans will die in this scenario. Further desperate and out of money, WWIII looms in the future because the real power broker over at the Federal Reserve are trying to desperately save the dollar.
The old paradigm is dead!
Today, led by the BRICS, seemingly everyone from European nations to Asian nations are ditching the dollar. And now, the continent of Africa has become the latest to ditch the dollar, subsequently, the dollar is facing hyper inflation and extinction.. Are you ready? Are you prepped? Do you have food, water, guns,,ammo, gold, and medicine? IF not, you could soon be doomed if you are only holding cash. Ignore this story, at your own peril.
In the last week alone, Inida and China signed a gold backed trading agreement. More Euro nations have ditched the dollar and on and on it goes.
From Europe to Asia to Africa, the Petodollar is in hospice waiting to die. I believe I can point to one factor that we should all be looking for that will signa when the collapse will be upon us, and believe me it will come like a thief in the night. We live in a “just in time economy”. Your local grocery store receives 3 to 6 deliveries per day. When truckers can lo longer make a living, the deliveries will stop. How long will it take for the shortages to impact the people who did not plan? That is an easy question to answer. In Hurricane Harvey, supplies were gone on the first day. When the economy collapses, based on historical precedent, there will not be restoration to any sense of normalcy until one, or some combination of the following occurs:
- Civil War
- World War III
- Breakup of the US into regions that will war with each other for resources.
What this tells you is that no recovery will occur until the three factors, listed above, reach a conclusion. And what we do not know, is if the globalists will be able to impose their iwll on humanity following the collapse.
It is impossible to calculate a death curve because there are too many variables. However, that did not stop the CIA-related Deagel from projecting a US 90% loss of life in the next seven years.
Will Cognitive Dissonance Save Us? Or, Is It time to Face Reality?
Which view prevails when we objectively examine the data?
FOR A LIMITED TIME ONLY