Monday, May 28, 2012
And So It Goes...
So begins an article in Investor Summit by CNBC senior writer Jeff Cox. In the article he goes on to describe efforts the ECB has gone to in order to stave off a currency crisis. Despite the efforts of the EU a large scale devaluation seems all but inevitable. Should that happen then dark are the days for theUnited States of America. Soon, very soon, theUSmay have to consider a drastic devaluing of the US Dollar. If that happens the worldwide ramifications are huge!
If you think this is impossible, think again. In fact currency devaluation is already happening!
In February 2012 the Federal Reserve Open Market Committee (FOMC) began implementing a plan to devalue the dollar by 33% over the next 20 years. In fact, the FOMC has been playing WAG (wild a** guess) with our monetary system since its inception. Should the dollar continue in its current trend then a drastic alteration will be the only alternative left.
The only way out of the current fast lane to decline is to cut government spending. This is because dollar devaluation is directly related to the size of the national debt. Currency loses it value when government is unable to pay off its debt. The amount of debt owed by theU.S.government to its creditors is simply un-payable. If all money owned by all American banks, businesses and individuals was rounded up and sent to the government, there would not be enough to pay off the national debt. It is mathematically impossible to pay it off. All we can hope for is a cut in spending to slow the skyrocket that is our debt load. That isn’t happening.
As if that wasn’t scary enough, as shockingly high as our debt is stated to be, 12.8 trillion dollars, that amount is just a tiny fraction of the terrifying amount our government really owes. In addition to the official 12.8 trillion dollar national debt,Washingtonhas written $108 trillion in off-budget, unfunded IOUs on Social Security, Medicare, Medicaid, its prescription drug program, its veterans benefits programs and its Federal pension programs that must also be paid.
Some might argue that the EU euro devaluation will in fact strengthen the US dollar helping to offset our growing debt crisis. The problem is that the US dollar is in the process of losing its place as the global currency of choice. Presently various other currencies are vying for the roll as world currency. In fact one of the FOMC’s biggest fears, one that is being realized even now, is that a significant global shift to the Chinese Yen might occur. That is happening right now!
I don’t know about you but I don’t see our present administration showing any indication that they are willing to take the steps necessary to reign in spending and slow government growth. They prefer to continue on their present course of insane and unbridled spending and rely on the FED to offset their lack of restraint by manipulating our currency. Should uncontrolled spending continue and our debt continue to grow then the decline and fall of the dollar is inevitable and ruin and destruction will follow!
Timothy 6:9-11, “But those who want to get rich fall into temptation and a snare and many foolish and harmful desires which plunge men into ruin and destruction. 10 For the love of money is a root of all sorts of evil, and some by longing for it have wandered away from the faith, and pierced themselves with many a pang.”