The Dollar Reserve Crisis

An economic hurricane is approaching and we need to reverse our country’s disastrous borrowing path. The worst is yet to come.

We are now in perpetual wars, have over doubled our national debt from under $6 trillion (60% of Gross Domestic Product) in 2000 to almost $19 trillion (104+% of GDP) in January 2016 and accelerating! It’s estimated that in just 4 years, in 2020, it will be over $21 trillion!

Our massive overspending and debt will lead to the dollar losing its reserve currency status. That will cause rapid inflation and an economic collapse. Why? As bond interest is so low, when we experience inflation the outstanding bonds will plummet in value causing a market collapse.Foreign governments are starting to believe that we can never repay our national debt, increasing at well over $13,500 a second!

And why is it increasing so fast, with no end in sight? Because we cannot get rid of our incumbent congressmen and senators. They are so well entrenched and fixed in their views that they cannot change to make sound decisions. After eight years in office (two terms for senators), they should all go. And I know how to do it.

We run the risk that foreign governments that buy our debt will lose faith in us that we can ever repay them.

So why does it matter if foreign governments lose faith in our ability to control spending and repay debts? Because they will force us to pay higher interest rates on our government bonds causing a sharp rise in inflation, and they’ll start bypassing the dollar for international transactions. It’s all supply and demand. If the U.S. dollar is in demand, we are in control. If not, we lose control. We are about to lose control.

What does that mean? The U.S. dollar is used for almost all international business transactions. That’s what keeps the dollar strong. If foreign governments and companies stop using the dollar and move to another currency, or basket of currencies, it will be a disaster for us. That will cause the cost of our imported goods, including oil, to soar.

I’ve seen what this does first-hand. It wasn’t pretty, and it will cause a dramatic change in our way of life, for the negative. If you think things are bad now…