Saturday, March 5, 2011
Collapse of the Dollar
The truth is the United States government is completely broke. The national debt has reached 13.6 trillion dollars. Not to mention the 61.3 trillion dollar deficit owed to the unfunded programs of Social Security, Medicaid, and Medicare. In total, the U.S. has 81.2 trillion dollars in obligations, while our Gross Domestic Product is only 14.59 trillion dollars. The simply fact is America will never be able to pay back it's debt. The Federal Government only has enough money to cover 2/3 of the interest payments toward the national debt. In order to continue this deficit spending, The Federal Reserve(which happens to be a privately owned corporation and has never been audited) prints money out of thin air through bonds. Most of these bonds are bought by foreign countries such as China and Japan. The Federal Reserve is foolishly adding billions of dollars into the money supply, causing inflation and decreasing the value of the dollar. To be completely honest, the only thing holding the American Dollar and this country afloat is the basic fact that after WWII, the U.S. dollar was made the world's reserve currency. It won't be long before countries like China and Russia decide that America is completely broke and switch over to the Euro. In all honestly, by 2015, massive hyperinflation will have taken place. Basically, dollars will be useless piece of paper.