The final collapse of the US dollar it is just around the corner

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April 9, 2011

SouthAmerica: Eventually even the Chinese are going to realize that they are accumulating "monopoly" make believe money. (Game of monopoly)

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George Soros said: “US dollar is no longer the main reserve currency”...

George Soros Says China's Inflation Is `Serious Concern' – April 8, 2011
http://www.youtube.com/watch?v=z_ajJmAF2aU


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Soros Holds Bretton Woods II – April 8, 2011
http://www.youtube.com/watch?v=fbPgMv0tDNA


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Bretton Woods Conference of 2011 = (Panic time)


April 9, 2011

Panel from INET's Bretton Woods Conference: Fitoussi, James, Rogoff, Soros (Part 1 of 5)
http://www.youtube.com/watch?v=I1CJ_nqKZPk

Panel from INET's Bretton Woods Conference: Fitoussi, James, Rogoff, Soros (Part 2 of 5)
http://www.youtube.com/watch?v=TgWiCIrR3k0

Panel from INET's Bretton Woods Conference: Fitoussi, James, Rogoff, Soros (Part 3 of 5)
http://www.youtube.com/watch?v=j1uOLpQKyKw

Panel from INET's Bretton Woods Conference: Fitoussi, James, Rogoff, Soros (Part 4 of 5)
http://www.youtube.com/watch?v=1Tz3Jr2EwVs


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Panel from INET's Bretton Woods Conference: Skidelsky, Ussher, Eichengreen (Part 1 of 4)
http://www.youtube.com/watch?v=RO9fOoCeEro

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April 10, 2011

SouthAmerica: The sad reality is that the United States is collapsing just like the Soviet Union – the collapse is already underway, and it is reaching an advanced stage.

The special status of the US dollar being the main global reserve currency it has reached the end of the line – the international monetary system is in deep trouble, and everything it seems to be getting out of control.

It's no coincidence that this weekend, 400 economists and central bankers have assembled in Bretton Woods, New Hampshire, to explore the way in which economic thinking needs to respond to the financial crisis, at a conference organized by the George Soros funded Institute of New Economic Thinking.

They are in Bretton Woods, because it is: “Panic time”....

Tonight I did watch on the History Channel a new program about “The Crumbling of America.”

If you have the chance of watching that program then you will realize that the United States is becoming at an alarming rate a 3rd world country. If you pay attention the signs are all around us.

The Crumbling of America – History Channel - April 9, 2011
http://www.youtube.com/watch?v=zBSPcIGGcIc

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Quote from luckybastard:

The US is doing shitty, but look at europe or Japan, then all of a sudden it's not THAT shitty anymore ...
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all that means is that world economies can sink into the abyss together.

your comment shows again that americans still don't understand the perilous state of the US economy resulting from its debt load. the US has possibly reached a tipping point towards the collapse of the $us.
It is like whistling pass the graveyard and refusing to accept reality.
 
Quote from Eight:

Gerald Celente, now there is an expert if ever there was one!

He sells books and stuff via late night radio by scaring people...
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I agree, but the REAL problem is that if the dollar loses world reserve currency status, what craziness Cenente is spouting, changes from absurd and unlikely to at least possible, and maybe probable.

What would the US economy look like if gas went to $10 a gallon in the next year? What if it went to $20 instead? That's the kind of scenario that will result if the world decides it doesn't trust the dollar to hold value.
 
Quote from SouthAmerica:

March 10, 2011

March 4, 2011
Harvard historian Niall Ferguson explains America's place in the new world economic order.
http://www.cnn.com/video/#/video/us/2011/03/04/gps.niall.ferguson.cnn?iref=allsearch


Yes, they did cut the part of that video with critical information that they don't want Americans to know about it.

Basically Niall Ferguson said: based on global history, and he mentioned many actual examples in the last 1,000 years - every time a superpower starts spending more money on interest expense related to its outstanding debt, than in defense spending – that is a major “Red Flag” and a signal that the superpower has reached the end of the road, and the United States as you can see by these figures is reaching that point when empires die a quick and sudden death.


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US Defense Department Base Budget:
Year 2012 = US$ 553 billion
Year 2011 = US$ 549 billion


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Historical Data Fiscal Year End
US Interest Expense Fiscal Year 1988 to 2010

2010
$413,954,825,362.17
2009
$383,071,060,815.42
2008
$451,154,049,950.63
2007
$429,977,998,108.20
2006
$405,872,109,315.83
2005
$352,350,252,507.90
2004
$321,566,323,971.29
2003
$318,148,529,151.51
2002
$332,536,958,599.42
2001
$359,507,635,242.41
2000
$361,997,734,302.36
1999
$353,511,471,722.87
1998
$363,823,722,920.26
1997
$355,795,834,214.66
1996
$343,955,076,695.15
1995
$332,413,555,030.62
1994
$296,277,764,246.26
1993
$292,502,219,484.25
1992
$292,361,073,070.74
1991
$286,021,921,181.04
1990
$264,852,544,615.90
1989
$240,863,231,535.71
1988
$214,145,028,847.73

Source:
http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm


Public debt owned by foreigners has increased to approximately 50% of the total or approximately $4.5 trillion. As a result, nearly 50% of the interest payments are now leaving the country, which is different from past years when interest was paid to U.S. citizens holding the public debt.

Interest expenses are projected to grow dramatically as the U.S. debt increases and interest rates rise from very low levels in 2011 to more typical historical levels.

In a Nutshell: In the coming years as interest rates go up in the United States the “interest expense” paid on the outstanding US debt will explode upwards, and by 2020 the US government is estimated to be spending about $ 800 billion in interest expense per year.


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US Historical Debt Outstanding - Annual 1981 - 2011

03/10/2011 14,285,000,000,000.00 = Obama
09/30/2010 13,561,623,030,891.79 = Obama
09/30/2009 11,909,829,003,511.75 = Obama
09/30/2008 10,024,724,896,912.49 = Bush Jr.
09/30/2007 9,007,653,372,262.48 = Bush Jr.
09/30/2006 8,506,973,899,215.23 = Bush Jr.
09/30/2005 7,932,709,661,723.50 = Bush Jr.
09/30/2004 7,379,052,696,330.32 = Bush Jr.
09/30/2003 6,783,231,062,743.62 = Bush Jr.
09/30/2002 6,228,235,965,597.16 = Bush Jr.
09/30/2001 5,807,463,412,200.06 = Bush Jr.
09/30/2000 5,674,178,209,886.86 = Clinton
09/30/1999 5,656,270,901,615.43 = Clinton
09/30/1998 5,526,193,008,897.62 = Clinton
09/30/1997 5,413,146,011,397.34 = Clinton
09/30/1996 5,224,810,939,135.73 = Clinton
09/29/1995 4,973,982,900,709.39 = Clinton
09/30/1994 4,692,749,910,013.32 = Clinton
09/30/1993 4,411,488,883,139.38 = Clinton
09/30/1992 4,064,620,655,521.66 = Bush Sr.
09/30/1991 3,665,303,351,697.03 = Bush Sr.
09/28/1990 3,233,313,451,777.25 = Bush Sr.
09/29/1989 2,857,430,960,187.32 = Bush Sr.
09/30/1988 2,602,337,712,041.16 = Reagan
09/30/1987 2,350,276,890,953.00 = Reagan
09/30/1986 2,125,302,616,658.42 = Reagan
09/30/1985 * 1,823,103,000,000.00 = Reagan
09/30/1984 * 1,572,266,000,000.00 = Reagan
09/30/1983 * 1,377,210,000,000.00 = Reagan
09/30/1982 * 1,142,034,000,000.00 = Reagan
09/30/1981 * 997,855,000,000.00 = Reagan
09/30/1980 * 907,701,000,000.00 = Carter


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As you can see by the above data: in the coming years the Defense budget will be reduced and move towards the $ 500 billion dollars per year level - at the same time that "Interest Expense on Outstanding US Debt" will explode upward into the $ 500 and $ 600 billion level.

The handwriting is on the wall: very soon the United States it will be spending more money on interest expense regarding its outstanding debt than on Defense spending.


You can see on this video the impact that a collapsing US dollar and International Monetary System will have on the global economy:

http://www.youtube.com/watch?v=PCAWqSNHRmI&tracker=False&NR=1


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This is rather startling data. One thing it shows is that even Obama, whose administration was forced to respond to the mess created by the G.W. Bush administration and his congress, is small potatoes when it comes to the relative rate at which debt was expanded. Reagan being the grand champion so far. Ironically the democrat administrations since Reagan have been penny pinchers compared to the Republican administrations starting with Reagan, yet it is the Republicans calling for deep budget cuts. Perhaps they are finding their professed enthusiasm for frugality a little too late to be taken seriously.
 
Quote from thriftybob:

I agree, but the REAL problem is that if the dollar loses world reserve currency status, what craziness Cenente is spouting, changes from absurd and unlikely to at least possible, and maybe probable.

What would the US economy look like if gas went to $10 a gallon in the next year? What if it went to $20 instead? That's the kind of scenario that will result if the world decides it doesn't trust the dollar to hold value.
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A jump to $20 a gallon for Gas?
Yea, that'd be a Mad Max scenario.
Joe 6-pack might be complacent, but if he's pouring his entire paycheck in his gas tank....he'll quit going to work and find other ways of surviving.:eek:
 
Not true.

NONE of them have pinched any pennies, let alone the TRILLIONS that now need to be cut. The very best has been to reduce the rate of increase while raising taxes, and still only resulted in a surplus because they stole $150 billion from Social Security that year.

The basic problems are that:

We have bases and troops in 140+ countries

Social Security is a ponzi scheme

Medicare is a ponzi scheme with uncontrollable costs

Other government functions not intended by the founders keep getting added based on "for the general welfare" words in the constitution, if you don't think its being almost completely ignored.

Our tax system was once to tax imports enough to pay for all government functions, and now we tax incomes and try to tax businesses instead. In essence, we now tax jobs, and reward importing goods/services, and so we have no jobs and everything is imported or outsourced if possible.

Our currency is now a ponzi scheme where we are printing and borrowing dollars into existence
 
April 10, 2011

SouthAmerica: Reply to Piezoe

The Republicans are a bunch of idiots, a lot of them are borderline brain dead - just a few months ago they were fighting like crazy to get a massive tax cut extended to themselves. We are talking about a ton of money.

Now these idiots are fighting like there is no tomorrow and almost closed down the US government because they want to cut nickels and dimes from the US government budget.

Paul Ryan - the Republican budget genius - wants to get rid off Medicare, and so on, at a time when the share of the US population is moving fast from 48 million to 75 million people for people age 65 and over.

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