I just finished reading a "dollar collapse" piece which I might link at the bottom. The most interesting scrap of information in it was this statement. "If all American taxpayers were taxed at 100%, we could not pay off the national debt."
So why is the stock market booming? Why are things so status quo?
For those of you that have read what I've written, it's simple. The United States has the world's reserve currency. The dollar. The only thing keeping this whole bankrupt mess afloat is that we simply keep printing dollars. Nobody else can do that. Just us. But only for a little longer. The eurozone and their astronomical debt levels are helping prolong the life of the dollar. The price of commodities is getting worse.
For example, oil is priced in dollars. If you are a foreign country, you must exchange your currency for dollars or the equivalent amount of your currency. Have you ever wondered why Japan or France pays twice as much for gas than us? I'll bet you thought it was because we have plentiful reserves and they don't. Didn't you?
Do you think American businesses have to take dollars in exchange for goods or services? Nope. There is no law that requires this. What is going to happen when the world quits taking our currency? Did you know that Russia and China have already agreed to trade their currencies rather than the US dollar?
I have been steadily converting 1/4 of my cash to gold and silver. The coming dollar collapse is not a black swan event. It is going to happen. It is just a matter of when. If you think 1400 dollar gold and 30 dollar silver are outrageously priced now, wait until the dollar collapses. Commodities are going through the roof and if you think 1.6 billion Chinese driving cars might have an impact on where the supply of oil goes- just think who oil producing countries are going to sell it to. Do you think they will sell to China with a stable currency or do you think they will continue to take worthless US dollars from a bankrupt US?
I am what I read. I believe the dollar is going to collapse. Soon. Within the next couple of years. We simply can't pay our debts. I don't know about you but I don't make a habit of loaning money to bankrupt friends with no visible capacity to pay the loan back. If you do that, it is a gift rather than a loan. Who is going to buy our debt? Nobody, that's who. That's why the Federal Reserve is buying it. It's make believe. The only strategy to protect what little wealth you have left is by converting 1/4 to 1/3 of your free cash into precious metals or other valuable commodities. Consider foreign investments. If you believe that the dollar cannot collapse, for no other reason than it has never done so before, you are foolish. If you invest a portion of your money now, you will be insured against that collapse. The gains you make will offset the dollar losses you will experience.
I believe the US Treasury is broke and I also believe the Federal Reserve Bank has no reserves. All they have is a computer system that extends make believe currency to member banks who then in turn use this make believe money to buy stocks. No audit of the Federal Reserve has ever taken place. I want to link you to a ZeroHedge piece posted tonight. Apparently there is someone, other than myself, who believes precious metals might be the place to park your dough...while you still can.
For those of you who'd like to see what you owe...here it is in real time. We owe more than 14 trillion. Note the bottom line. Every US taxpayer now owes over 1 million dollars. If that doesn't bother you just a little...go ahead and just send in your check now. Have them apply it to the principal.
Here's the lengthy piece supplied by my like minded brother.