January 26, 2011
SouthAmerica: Barack Obama gave a nice speech last night, but in my opinion, it's too late on the game, because the United States has passed the point of no return.
The truth is the US economic system is becoming obsolete faster than most Americans realized, and Americans lost their vision of the future regarding the United States economy, and the smart money is investing in emerging markets around the world â that is where the future lies and new innovations and technologies will be created.
The United States is becoming irrelevant in foreign affairs very fast, and we can see the growing evidence of that trend in South America, the Middle East, Africa, and in Asia.
The US economic system is imploding one step at the time on a constant downward spiral â and this implosion it will be more evident in 2011 and 2012 when the states around the United States are forced to cut their budgets to the bone, and local governments will join on this budget cutting process reinforcing even further this US economic implosion.
The federal government also will be forced to make major budget reductions in the coming years putting even more pressure into the downward implosion spiral of the US economy on its trip towards the black hole.
The only reason the US economy has not had a total collapse like the Soviet Union as yet, it is because of all kinds of massive US government intervention into the US financial system, and also because of the special status that the US dollar enjoys â the privilege of being the main foreign exchange currency â But the rest of the world started realizing that the US government is completely out of touch with reality regarding the intrinsic value of the US dollar and the declining importance of the US economy in the coming years as a share of the total pie of the global economy.
In a nutshell: The reality of the new global economy in the 21st century is that it's operating under a completely obsolete international monetary system based on the US dollar â and a currency backed by nothing other than a computer screen that can create any digital bookkeeping entry and add to bank accounts any number followed by as many zeros they want. It doesn't matter if the Federal Reserve wants to create US$ 1 trillion or US$ 10 trillion â the only thing that is behind this money creation from nothing â this magic act â it's the current trust that people has around the world on the future of the US economy â and that trust can disappear in the blink of an eye.
But as soon as people realize that the US economic and financial system is imploding just like the Soviet Union â the final massive meltdown will materialize fast, and this time around Americans and the world in general it will not have the US government to serve as safety net, since the US government and the states around the country also it would be bankrupt and discredited.
It will be not just a meltdown of the US economic and financial system, it will be the collapse of the international monetary system into the biggest monetary crisis the world has ever seen.
If you are smart enough to connect the dots, then you can see the big picture, and you will be able to grasp what I am saying â the collapse is underway and the only thing the US government can do at this point is buy some time until 'when you least expect' the day of reckoning arrives at the speed of light.
When the final implosion of the US economic and financial system arrives, probably the process it will happen faster than the final implosion of the Soviet Union system.
Regarding US defense spending and the US military adventures around the world â just look what happened to the Soviet Union military and its influence around the world after the collapse of the Soviet Union, and that gives you a snap shot of what happens to the military of former superpowers.
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January 26, 2011
Two friends of mine mentioned to me that they had seen the enclosed video, and that Jim Rogers and I were quoted on this video. About 220,000 people have seen this video so far in two locations on the net, and I am quoted on this video around the minute 40 into the video presentation.
Porter Stansberry Research - The End of America â December 14, 2010
http://www.youtube.com/watch?v=nI-BIVWlc7A&NR=1&feature=fvwp
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