Friday, February 1, 2013

The Coming Collapse Of The Dollar, Hyperinflation, And More Good News

The stock market is up today and reached 14,000, the highest level since 2007.  But don’t believe for a moment that our economy is not in trouble. Check out a few items of interest:

  • The economy shrank from October through December, 2012, the first quarterly drop since 2009. According to the Commerce Department, the annual rate of drop in the economy was .1 percent at the end of December. If this continues, an “official” recession will slam us in the face once again, although many Americans believe the last recession never ended;
  • Consumer confidence is at a low level. In January, consumers bought more gold and silver than they have for many years;
  • During the first week of January, $114 billion was pulled out of U.S. banks, the highest amount in twelve years;
  • The Internal Revenue Service (IRS) says the cheapest health insurance plan under Obamacare in 2016 will cost a family $20,000 for the year. Remember that Americans will have to buy health insurance or they will be assessed a penalty by the IRS. To all you Obama voters, isn’t this just great?
  • Time Inc. will soon eliminate hundreds of jobs. A global medical technology company has laid off nearly 100 employees at its offices in Tennessee and Massachusetts and is blaming the layoffs on the medical device tax tied to Obamacare. (Fox News) This type of activity will continue as Obamacare’s final deadlines approach. Many companies are reducing the number of full-time employees and replacing them with part-time employees;
  • President Obama gave pink slips to the members of his jobs council (which hasn’t met in a year anyway), even as weekly jobless claims increased and the “official” unemployment rate increased to 7.9%;
  • Obama refuses to tackle the ballooning deficit, virtually ensuring that it will increase by another four trillion dollars or more during his second term;
  • The president will not reign in spending, telling House Speaker John Boehner that "we don't have a spending problem";
  • Quantitative easing under the Obama administration has created so many new dollars that hidden inflation (the shrinking value of those dollars) is taking a toll on everyone’s purchasing power. Food, fuel, and other commodities are increasing monthly. Ever notice the smaller packages with fewer items for the same price in the grocery store? Obama and his advisors are clearly not concerned with the effect of the government money tree on the value of our dollar;
  • So many dollars have been created that the dollar’s status as the world’s reserve currency is at risk. Many countries, including Russia and China, are seeking to find an alternative to the dollar. “There is a gentle and osmotic process underway,” says economic analyst Julian D.W. Phillips, “a lessening of the role of the U.S. dollar in the global reserves.”
  • In October of 2012, former Federal Reserve Chairman Alan Greenspan said, “We’re beginning to see some move from the dollar to the euro, both from the private sector … but also from monetary authorities and central banks.” When the dollar is replaced as the world’s reserve currency, all of these countries will unload their dollars all at once, and hyperinflation will be the new game in town;
  • When asked what he saw for the future, Peter Schiff, president and chief global strategist of Euro Pacific Capital, said, “…there will be a precipitous drop in the value of the dollar; prices are going to skyrocket for pretty much everything; and maybe the government will impose price controls on food products and energy, and everybody is going to be standing in long lines just to get the basic necessities of life…. Take a look at Greece today. Look at all the government employees protesting. It will look like that, except not as civil.”
Former Congressman Ron Paul has written, “The consequences of a rapidly declining dollar are not yet fully understood by the American public. The long-term significance has not sunk in, but when it does there will be political hell to pay in Washington. Our relative wealth as a nation is measured in dollars, and the steady erosion of the value of those dollars means we will all be poorer in the future.”

But the stock market went up today, so everything is okay, right?

Charles M. Grist
Author of the award-winning book My Last War: A Vietnam Veteran’s Tour in Iraq

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