It seems like every day we hear calls from the leaders of India, Russia and China to create a new world reserve currency to replace the weakening dollar.
Will it happen?
Nobody knows.
But I do know this: America is printing so much money, and it's going into so much debt, there's absolutely no way the US dollar will rebound anytime soon.
And for the morons who think that Obama knows what he's doing by spending trillions of dollars to jump start the economy, just remember this: Bush started this spending spree. In terms of the economy, Obama is no different than Bush.
In the article below, the newest member of the Angel Publishing team ― Alex Koyfman ― explains why the dollar may never return to its status as the world's reserve currency.
The US government and Federal Reserve would like you to believe that the US dollar has inherent value. . . that it's stable. . . that it's a store of value. . . that it is, and will always be, the world's preferred currency.
But, as more and more people are learning everyday, that is all just a fairytale. . . a fantastic misrepresentation of reality. The truth is. . .
The Value of the US Dollar is Gone
A 1928 $1 Silver Certificate
A dollar, once redeemable for physical gold or silver, is only backed today "by the full faith and credit of the United States government."
That means the US dollar is given credit and strengthened by the government's ability to levy taxes or borrow from a separate entity, like the Federal Reserve or a foreign government.
Think about that for a minute.
First of all, no entity, not even one as large as the United States government, has unlimited credit.
The American government, just like you or me, is limited by how much it can borrow. And with the national public debt already approaching $11.5 trillion ― and growing by an astonishing $3.8 billion per day ― the nation must be quickly reaching its credit limit.
Perhaps more frightening is the government's guarantee to back the US dollar through its ability to tax the American people.
If you don't pay your taxes, you may be fined, your paychecks may be garnished, your property may be seized, and you may even be thrown in prison. . . federal prison!
In other words, the government's guarantee of the dollar ultimately rests on your fear of incarceration.
What once derived its value from gold now takes its strength from state-sponsored intimidation.
It's true, we've fallen quite a ways from the days when the greenback meant something. And what's really scary is that. . .
The US Dollar's Value Has Eroded in Just a Few Decades
At the close of WWII, with just around 5% of the world population living in the US, the nation nevertheless produced 75% of the manufactured goods consumed globally.
It was an astounding achievement that set the stage for what many historians dubbed "America's Century."
That century is now over, literally and figuratively.
Although our economy was once responsible for a constant flow of steel, cars, ships, high-tech equipment, and all varieties of household goods. . . although our nation once fought off the Nazis and supplied the Allies with the goods and capital required to defeat the forces of evil and build the modern world up from the ravages of global war. . . today, America's number one product is debt.
And the mountains of debt we accumulate on a daily basis will only keep growing because our industry and exports simply cannot keep up.
We've all felt it, from the common citizen to the biggest corporations.
Unfortunately, the Fed's main tactic for combating this mounting crisis is adding to the money supply, which they're doing at an unprecedented rate today.
Economist and executive editor of Shadow Government Statistics John Williams began tracking the total supply of money in circulation after the Federal Reserve refused to continue publishing the figures in 2006. Today, Williams estimates the total supply of US dollars ― including large time deposits, institutional money-market funds, short-term repurchase agreements, and other larger liquid assets ― is approximately $15 trillion.
This is a shocking 250% increase to the supply of US dollars in the past 15 years alone!
Of course, you know the result of this approach. . .
Every dollar the Federal Reserve prints, when not supported by an equivalent growth in productivity, just leads to a devaluation of every dollar in circulation. That includes all those dollars you've slaved to put away for your household improvements, your kids' college fund, and your retirement.
Inevitably, as the Federal Reserve's hunger for capital increases, and the individual value of each dollar decreases, the taxpayer ― the true backer of the US Dollar ― will be coerced into paying ever-increasing chunks of precious income to keep the machine alive.
Eventually, something will have to give: either your ability to earn or Uncle Sam's ability to take it from you.
You make the call which will outlast which.
There is a way out, however. You can still salvage your savings and secure the value of your assets, as they're valued today, before it's too late.
But for that, you'll have to return to the antiquated practice our national economy dropped back in the early 1970s.
You can take your faith out of the future prospects of the US economy and put it back into something inherently valuable. . . something that maintains and even increases its worth just by existing.
The political machine that has ravaged our economy has had its chance, and has blown it every step of the way. Take your financial future into your hands today and learn why now is the best time in American history to invest in the metal that was once the backbone of an empire. . .
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