It is believed by a very few that most Americans are in for a huge shock in the next few years. Most will lose a lot of money. The American government is in a very huge debt and this debt is impossible to pay even in the far future. Most powerful countries who have realized this default are beginning to take immediate actions. The United States of America owes the Federal Reserve Bank over $17 trillion and there is no means of paying that debt in the nearest future. The American government has resolved to printing dollar bill every month. She prints billions of dollars annually and some countries are beginning to limit their use of the dollar, anticipating that the value will drop drastically in the nearest future. Millionaires and billionaires are converting their liquid cash in gold so that they are not affected. This explains why the value of Gold(Au) has skyrocketed for 12 straight years. As far as we are concerned, no other assert has reason for 12 straight years in the history of the nation.
It should be noted that the USA is not the first country to go through this. When the Germans realized their currency was being destroyed in the early 1920s, they converted their currency to Swiss Francs and Gold and saved it in the World Bank.
When Argentinians realized their currency was being destroyed in recent years, they did the same by moving money as quietly as possible into a safer currency and into “hard assets” like land and precious metals. It is the same with the US Dollar right now. The USA has the most reserved currency in the world at the moment. As it continues to lose its position as the world’s reserve currency, it will cause a landslide in our economy which is estimated to be 10-times worse than the mortgage crisis of 2008. The American government was able to get through the situation by printing trillions and trillions of dollars. In a current crisis, it’s impossible. Printing money only makes it worse. Many individuals are saying this. Barron’s from Wall Street journal quote “The demand for dollars from the rest of the world has been of inestimable benefit to the U.S economy. it enables us to consume more than we produce” In other words living beyond our means. Sam Zell one of the richest men in Chicago according to Forbes magazine said on a rare interview with CNBC “My single biggest financial concern is the loss of a dollar as the reserve currency. I can’t imagine anything more disastrous to our country. I’m hoping against hope that it ain’t gonna happen. But you’re already seeing things in the markets that are suggesting that confidence in the dollar is waning. I think you can see a 25% reduction in the standard of living in this country if the Us dollar was no longer the world’s reserve currency. That’s how valuable it is.”
If this was to happen, it will lead to a massive inflation never seen before. Every one is getting rid of the dollar and the government keeps printing. This value might reach epic proportions. In the past 100 years, this type of inflation (where the country tries to get rid of debt by printing more money) and debt crisis has reared its ugly head in Germany, Chile, Austria, Russia, Japan, China, the Ukraine, Brazil..etc
We have to start taking serious measures.
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