By Al Duncan
March 12, 2011
The U.S. dollar is the world's reserve currency. Banks around the world hold dollars in reserve against their loans. America is the only debtor in the world that can legally print U.S. dollars, and it is the only country in the world that doesn't have to purchase its imports in a foreign currency. Americans can freely purchase without worrying about buying another currency to pay for it, and Americans don't have to produce anything or export anything to acquire dollars needed to buy.
The U.S. is different from other countries because the dollar is the reserve currency, which is the currency that the rest of the world measures its currency against. This gives the U.S. an advantage because it can print money and then borrow it from itself—this has also caused the U.S. to be the largest debtor-nation in the history of the world.
As an example, Germans cannot buy oil from Saudi Arabia in German marks because oil is priced in dollars. Therefore they have to buy dollars first. To maintain the value of its currency Germans must produce as much as they consume, otherwise the value of Germany’s currency will fall, prices will rise and its standard of living will decline.
Because of the 2008 collapse the U.S. government absorbed trillions of dollars in bad debts. So much that even, if U.S. citizens were taxed 100 percent of their income, we still could not balance the Federal budget and we would still have to borrow money to maintain the status quo. So now, our government is repaying these debts by printing trillions of new dollars, which only worsens the problem and leads to hyperinflation.
China holds more U.S. dollars than any other country and China is exiting the dollar as fast as it can without crashing its own economy. Iran has moved all of its reserves out of U.S. dollars and last year Kuwait de-pegged its currency from the dollar. China and Russia have started trading in each other’s currencies, further diminishing the dollar's role in global trade. Moreover, the International Monetary Fund recommends a global currency called the “Bancor” with a global central bank to administer the currency.
According to Robert Fisk of The Independent, October 2009, a group of the world's most powerful countries, the Gulf Arabs, China, Japan, Russia and France had a secret meeting to end dollar dealings for oil, moving instead to a basket of currencies: the Japanese Yen, Chinese Yuan, the euro, gold and a new, unified currency.
In 1921, the U.S. was going through a depression. President Harding convinced Congress to eliminate wartime controls, slash taxes, establish a Federal budget system, restore the high protective tariff, and impose tight limitations upon immigration. Just two years later, the country had defeated depression and the newspapers hailed Harding for fulfilling his campaign promise, “Less government in business and more business in government.”
Today, unlike 1921, 1 out of 6 Americans receives government aid; 57 million receive Social Security benefits, 50 million are on Medicaid, 41 million are on Food Stamps, 10 million receive unemployment insurance, and 6 million are collecting Welfare benefits.
Approximately 50 percent of the U.S. population do not pay income tax. But whether you pay taxes or not, your vote still counts, and those receiving benefits do not want the government to cut spending. When politicians can rob from Peter to pay Paul, they can always count on Paul’s vote.
Including benefits, government workers earn 40 percent more than the private sector. Although government workers pay income tax, their wages are derived from government revenue. The entire U.S. workforce is about 50 percent of the population; only those working in the private sector create true revenue. Meanwhile, tax demands are mounting while employment numbers are diminishing by the day. We now have a majority whose interests are in direct conflict with the shrinking minority that supports the entire nation.
Herein lies the problem, as Porter Stansberry warns in his recent Stansberry & Associates Investment Research report, “When the U.S. dollar loses its spot as the world's reserve currency, it will cause a brutal downturn in the economy.”
Oil is an integral part of the lives of Americans; it involves everything we do from how we get our food to how we move around the world. Due to the recent crisis in the Middle East, gasoline at the pumps is expected to reach $5 to $6 a gallon by the end of 2011. America's greatest benefit of possessing the world's reserve currency has been cheap oil. However, when oil is no longer priced in dollars, the price of oil for Americans will skyrocket even higher, and that will drastically alter the way Americans live. Virtually everything will suddenly be infinitely more expensive, since virtually everything is shipped by transportation that consumes fuel.
This is all taking place when there are 41 million Americans on food stamps, a number that has escalated every month for 19 months, and when the actual unemployment figure, called the U-6, is around 22.9 percent.
Largely due to outsourcing, the Center on Budget and Policy Priorities states, at least 46 states face severe budget shortfalls and some states may even declare insolvency in 2011. The state of Arizona is selling the legislative buildings, the House and Senate, the State Capitol Executive Tower and the state fairgrounds, according to the Arizona Central. And the state of California is so financially strapped it’s being forced to release 6,500 inmates into our cities next year, says the San Francisco Chronicle, Dec. 1, 2010.
The problem isn’t higher U.S. wages, but anti-business laws. Ninety percent of the additional costs are not from higher labor rates, but from higher taxes and regulatory charges, which other nations simply do not impose. The U.S. has the highest corporate tax rate in the world. Thus, with current regulations, our country will never experience the type of growth necessary to pay its debts.
Edward Niedermeyer, of the New York Times, July 28, 2010, in an article entitled “GM’s Electric Lemon,” illustrates the problem clearly, “Here is yet another example of crony capitalism, in the form of the GM Volt; a four-passenger, uncomfortable, electric hybrid, overpriced four-seater at $41,000 that under-performs at an under-whelming 40-miles before needing a charge.
“This is more than a poorly designed, expensive car subsidized by taxpayers,” says Niedermeyer, referring to the wasted cost from a $50 billion bailout, $240 million in Energy Dept grants, $150 million in federal money for Volt’s Korean battery, up to $1.5 billion in tax breaks, and the $14 billion loan in 2008 for retooling its plants. “There’s also a cost for the 75,000 ‘Government’ Motors employees paid to assemble the Volt, which is expected to lose money on every car.”
American tax dollars financed the factories, American tax dollars financed the materials and American tax dollars are paying the wages of the workers. And if that was not enough, our government wants taxpayers to buy this lemon, again, at an exorbitant price, upon which more taxes will be charged.
All of the above is a formula for chaos and disaster.
Therefore, I foresee extremely difficult times in the very near future and preparation is the only way to lessen its impact. I recommend that people have basic food, water, and medical supplies to last for at least six months.
Joel Skousen, editor of World Affairs Brief and author of “Strategic Relocation” and “The Secure Home” states, “You specifically need to get your fuel and food storage up to date. Mountain House foods has stopped almost all relationships with their dealer network because the government is buying up almost 100% of what they can produce in the next few years. Other storage food producers are seeing record orders. I don't think price or availability will ever go back down.
Skousen continues, “Here at the World Affairs Brief, we feel that people ought to spend their first dollars on a large stockpile of wheat, rice and beans. In bulk, this is still relatively cheap and you can get a ton of wheat for what you pay for a dozen boxes of vacuum packed dehydrated storage foods. You need both, plus some extra canned goods you normal use to have sufficient variety—but get the large quantities of wheat first. You'll never starve and you might have some to share. Be sure and get a wheat grinder too so you can use the wheat to make flour. Even an inexpensive hand grinder will allow you to grind wheat cereal.
And Skousen concludes, “As for fuel, we recommend you store lots of diesel, not only for a generator but for a diesel vehicle, which everyone should have. They get great mileage and the modern ones run like gasoline engines. The fuel stores almost indefinitely. Gas will last only about a year even with a good additive like PRI-G or Stabile. You can make it go longer if you put it in sealable barrels and cap them tightly so the volatile compounds in the fuel can't evaporate.”
Stansberry also warns in his report, “You will not be able to count on the government during this crisis, the government will implement policies to save itself. And desperate governments will do desperate things, which is why they are already talking about nationalizing automatic 401(k) and retirement plans. If you live in an urban area, you should have somewhere to go in case of riots or food and water shortages, since there is a very good chance we will see that in the next two years.”
Foreign governments, along with some of the smartest money managers in the world, are taking huge positions in gold and silver. Although I am not a financial advisor, it is apparent that the demise of the dollar, coupled with hyperinflation, represents a decline in purchasing power. Thus, the only safe alternative is gold and silver.
Whether by a total collapse of the economy, a national revolt, World War III, or all of these catastrophes combined, chaos and destruction is coming to America. The public officials and the corporate media’s explanation for these events will not be reliable. The plan is to build the New World Order out of America’s chaos and destruction.
Do I believe the planned destruction of America can be reversed? No.
Whether this will be God’s judgment on America, I do not know. Whether it is or it is not, I do not believe enough people will do what is necessary to save this nation. The only solution is to repent and ask God for forgiveness. The second act is to kick every one of the bums out of office, with the exclusion of Ron Paul and a few others. The Power Elite use both Political Parties as a channel to introduce their candidates, so each incumbent must be replaced with a non-party member.
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We have the best politicians that money can buy. They are not stupid, they are not misguided, nor do they mean well. They are intelligent, cunning, arrogant and greedy, and they know exactly what they are doing. And if we do not replace them with God-fearing, Constitutionalists that love the Lord and love America, this once great nation is doomed!
SPECIAL NOTE: After the posting of my last article, World War III, I received an email from Mr. Terry Melanson informing me that the Pike/Mazzini letter is a fraud. In all fairness and honesty, I found Mr. Melanson’s research extremely informative. His findings can be viewed here.
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“Al Duncan is the author of The Master Plan, which is now being revised. He is also compiling a booklet of about 60 short articles for publication and future availability. Until recently, he wrote a weekly column for a local newspaper, the Lake County Record Bee, distributed by Associated Press. The readers were basically secular and unaware of the New World Order, so his articles were written hoping to educate the reader on this subject. However, Al realizes that NewsWithViews attracts an informed reader, who is seeking to expand his or her understanding of the truths behind the daily events, and how these truths can best help them meet the challenges ahead.
the fourth generation of Real Estate Brokers and for the past eight years
he has owned Al Duncan Real Estate, Inc. in Clearlake, California. For
the past seven years he has been on the financial committee, participated
as a Sunday greeter and head usher at Lake County Bible Fellowship in
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