True Conspiracy

Brining you the latest news on conspiracy theories and exposing a big web of lies governments and transnational corporations create to fool us.

Sunday, July 30, 2006

When Will US Dollar Collapse?

First of all, let us take a look at a typical US dollar argument VS gold. The usual argument is that the world will abandon the USD because the US has such deficits. This is the classic economic view, as if fair play in markets really exists. In other words, simple economic rules of fair play will initiate a decline or collapse of the USD, and consequently of the US way of life.

A more informed view would be otherwise. This view is that the collapse of the USD would remove the US from the forefront of world economic and military supremacy. And, that our enemies and friends would never allow a collapse of the USD without these issues in mind.

But, what of the possibility that the coming USD collapse will be allowed to happen, or caused to happen in conjunction with devious and damaging agendas against the US?

Typically, in the press and in the 'public' financial viewpoints proffered, you will hear of the preeminence of simple fair minded economic reasons why the USD must eventually collapse- due to US indebtedness.

Of course, that would be the pretext, and a quite real one at that. Obviously, the US is already bankrupt, what with $50 trillion plus of liabilities coming online in the next 20 or so years for the Federal government alone. But, I think, one can ask, how did all these astronomical promises come to be?

I don't want to digress, but take the latest increase in promises of Medicare, the prescription drug benefit. That alone added several trillions of new liability to the already overtaxed Medicare program. Could it be that those liabilities were enjoined on us to haste a collapse of the US overall? That is a good question.

In other words, the typical view of such an advance in US social liabilities is the insatiable demand of the population for more and more Federal largess. It sounds good as a driving theory, and does indeed help elect officials who proffer your financial future to their political constituencies. Or, in other words, 'it is a social disease as predictable as the flue, and it is a natural phenomena for democracies to overspend public money.'

But, upon further reflection, such excess in the case of the US could have more sinister connotations. I think it would be reasonable to suspect the over promises of Federal largess to be a deliberate attempt-plan to destroy the USD and the US. As easy as pie to accomplish, if you want to wreck the US financially.

Which will now take me back to the point. The twin US deficits, trade and Federal, are placing the US in the position of real vulnerability to its financiers.

Now, I was never a conspiracy theorist. But, when one investigates money, and finds the economic deck stacked in such a way as to ensure the final collapse of the USD, one realizes that such deck stackings are not accidents by a long shot.

The USD situation is such now, that, the US is dependent upon financiers and central banks outside the US for its life blood - namely new credits.

A former US treasury secretary said that the US is putting its future in the hands of foreign nations who are financing our trade and federal deficits. (Secretary Snow as I recall.)

These new credits are now in the amount of $800 billion plus $400 billion yearly trade and Federal deficits. That comes to a cool $1.2 trillion per year, or, just about 10% of the entire US GDP a year.

If the financiers of these US deficits were to decide not to continue the credits, the US economy and the US Federal government would become immediately insolvent. How in the hell did the US ever allow itself to get into a financial situation that has national security implications, ie - if foreigners don't continue credits they can crash our currency and economy if they wished to?

It would be academic if hyperinflation of the USD were to precede or follow such an event, of a cease of further foreign lending to the US. It could be said that US inflation could stop the attractiveness of new lending to the US because the USD was falling in value due to inflation. And it could be said that ceasing new credits to the US would cause immediate inflation and hyperinflation of the USD because the Federal government would run out of money, and the Federal Reserve find it necessary to print new trillions of USD to make up the Federal and trade deficits.

In either case, catastrophic hyperinflation of the USD now follows, or leads, to an end of further financing of the US Federal and trade deficits.

OF course, such an event leads to the destruction of the USD and consequently economic collapse in the US and paralysis of the US nationally and internationally. And the total annihilation of your USD financial accounts!

And of course, such an event is all an 'economic accident'- at least publicly. The investing/financial community will all talk about the insatiable demand of the US consumer that led to overspending and bankruptcy. There is a lot of straw to bury the pernicious needle of conspiracy to destroy and paralyze the US in.

The economic think tanks will say that the US collapsed because of excessive promises to the voting masses, and, of course, 'such is always the fate of democracies'.

But a more sinister possibility rears its ugly head. That the US was led down a garden path to financial collapse deliberately, allowed to freely spend its way to oblivion, all with the acquiescence of knowing political and financial elites- who knew all along what would happen- the total economic and political collapse of the USA. And consequent paralysis of it internationally.

Somehow, that scenario rings very true because the whole world is waiting with baited breath to see the demise of the last great superpower, indeed the only superpower on earth since World War 2. No one else could hold a candle to the US. People say Russia was a superpower after WW2, but that was all bluster. They were always way behind the US economically and militarily since WW2.

The status of the US post WW2 was that of the Roman Empire at its height, where it ruled the entire world for centuries, and taxed its provinces at will to finance ever more expensive military escapades.

OF course, the US did the world a good turn overthrowing the military dictatorships that tried to conquer the world in WW2.

Nevertheless, the US cannot go on being the policeman of the world for long now. And, somehow, I think that certain elites have already decided the US's fate, with the ever powerful weapon of finance-money.

So, to conclude this section of this paper, quite possibly the US was deliberately encouraged to dig itself into a great financial hole, only to have its finances become a great lever over which to create its coming downfall. That downfall will come with a very great crash, and will be of a greater effect on your lives that even the Great Depression of the 1930's.

It will be the onset of a Dark New Day for Americans.

Christopher Laird
Editor-in Chief

The Coming Collapse of the Dollar and How to Profit from It