Home | Contributing Writers | Index & Archives | Mucking Forum | Whistleblowers | Contacts
muckrakerreport.com
Declining purchase power of the U.S. Dollar

"Give me control of a nation's money and I care not who makes her laws"

Meyer Rothschild

Declining purchase power of the U.S. Dollar

 

June 26, 2006 – Unless something drastically changes and quickly, the United States of America will continue its steadfast plunge towards the biggest financial / economic crash in history.  The national debt as of June 24, 2006 was $8,396,207,722,575.62.[1] Under the Bush Administration and a Republican controlled Congress, the national debt has increased from $5.6 trillion in 2000, to $8.4 trillion today.  According to researchers at the U.S. National Debt Clock, the national debt has continued to increase an average of $1.74 billion per day since September 30, 2005.  How any politician – particularly one that calls himself or herself a Republican – can call current policy fiscally conservative is beyond any thinking person’s comprehension. 

 

Republicans attempt to explain away the national debt by pointing to the events of September 11, 2001, the wars in Afghanistan and Iraq, the global War on Terror and Hurricane Katrina as the excuse for runaway debt.  Democrats point to the Bush Administration tax cuts as irresponsible in light of the financial needs of the federal government.  Both parties are wrong – if you still believe the Democrats and Republicans represent two political parties.  Actually, there is only one political party in power right now and it is a two-part juggernaut called the Republicrats.  The emphasis here is on rats - because that’s exactly what the rodents in the U.S. Congress and White House are collectively - dirty, rotten rats, which are stealing the American workers’ purchasing power with each new dollar of debt the government creates. 

 

It is clear that the federal government would rather bankrupt its people than give up any of its power, size, and scope.  If you haven’t noticed yet, the U.S. government no longer derives its power from the people.  It is its own power that does what it wants, whenever it wants, to whomever it wants.  That makes you and I enslaved subjects of a hostile government.  If you don’t feel enslaved, just wait.  You will.  In the meanwhile, if you haven’t done so yet, it’s time to join and build another viable, political party.  The Muckraker Report recommends the Libertarian Party.  The LP is not perfect, but at least it is not owned and controlled by lobbyists and bankers – although if it emerges as a political force, it will have to guard against and thwart hostile takeover attempts by the aforementioned.  For the record, the Libertarian Party is adamantly opposed to the Bush Dynasty’s New World Order globalization agenda. 

 

The Bush Administration and U.S. Congress, coupled with the criminal cartel of private bankers – foreign and domestic – that make up the money mafia called the Federal Reserve, have the U.S. taxpayer and worker on a collision course with hyperinflation, recession, and a total collapse of the U.S. and world economies.  As the Muckraker Report has stated in previous articles – the direction the fools on Capitol Hill have the U.S. heading could make the Great Depression of the 1930’s look like a bounced check in comparison to the fear and despair that awaits the American people. 

 

Let’s assume, although these assumptions are categorically false, that 9/11 happened exactly as the U.S. government says it did, that Osama bin Laden is actually wanted by the government in connection with 9/11 and therefore defines why the U.S. had to invade Afghanistan, that Iraq actually posed an immediate threat to the United States, and that the U.S. government honestly wants to help the poor folks that lost what little they had in Hurricane Katrina rebuild, rather than use the natural disaster as an opportunity to primarily enrich big business that makes big campaign contributions to power hungry politicians as they rape the U.S. taxpayer and steal the abandoned land along the Gulf Coast.  Let’s assume that all is on the up and up – that the Republicrats are shooting straight with, not at, the American people. 

 

What happens in your household when an emergency occurs?  That depends on your wealth, doesn’t it?  For some folks, needing tires for their only vehicle and primary form of transportation to and from work constitutes a financial emergency.  Fifty years ago, Americans used to save money the best they could in preparation for such events.  Not anymore.  Today, a credit card with an available credit balance serves as savings for emergencies.  What a horrendous, criminal situation!  How many of us have used those damn credit cards to purchase essentials with no ability to pay the balance in full within 30 days?  How many of us have purchased $500 worth of tires and paid the treasonous bankers $1000 or more over the course of the billing cycles before we actually pay for those tires?  Why should the banking cartel profit during your time of need anyhow?  Why is a banker even part of the equation?  Easy credit rip-off baby!  I’m telling you, the bankers, the banking cartel from Rothschild down, every single bastard that participates in this bait and rob scheme, need to be publicly tarred and feathered!   Vengeance in the hands of an irate people! 

 

So you reach for your last credit card statement.  Damn it!  You’re maxed out!  No credit for you!  The fact is that you’re so over-extended, have been repeatedly raped by the government and the bankers so much already, that nobody wants you anymore.  You’re all used up!  You have been tapped, slapped, and left to die a slow economic death.  Now the government and the banks will not loan you so much as a glass of water!  They have bled you dry!  But you still need tires.  What will you do? 

 

If you have never been in this situation, I’ll tell you what many Americans do when they are faced with such financial emergencies.  They cut corners.  The save money.  They buy retreads.  They go to junkyards and buy two less worn out tires to replace the two most worn out tires on their vehicle.  They cancel their cable, have their home phone turned off, and eat rice for a month.  They find a way to squeeze the money out of their limited resources.  They persevere and find a way.  But not the U.S. Congress.  Its credit card balance is unlimited because they get to raise the credit limit, or as they call it - the debt ceiling, whenever they want with no worries about paying it back because the American people are the collateral for the loan. 

 

Basically, the federal government is operating on a stolen credit card with the peoples’ name on it.  Imagine if you could raise your credit card limits whenever you wanted.  Imagine if you knew you could raise your credit limit endlessly, change the newly extended credit into dollars, and use some of the monetarized debt to make payments on the old and new debt – with no end in site!  What would it be like if every American had a credit card with the same ability?  I’ll tell you exactly what would happen!  The prices of everything would explode.  Why wouldn’t they?  It’s free money, right?  Most Americans would be millions of dollars in debt and nobody would seem to care.  The value of the dollar would become worthless.  It would take thousands of dollars to purchase what a single dollar buys today.  History warns us of the destiny of fiat, fake money with the slogan – “Not worth a Continental”.  How much longer will we wait until the world is saying, “Not worth a Greenback”?

 

The Continental Congress issued fiat paper money to pay for the costs of the American Revolution.  Due to over-issuing the Continental, lack of confidence in the money emerged, soon rendering the Continental as nearly worthless or “not worth a Continental”.  Eventually, Congress redeemed the continental notes at 1/100th of their original value.  The point that simply cannot be missed is that due to over-issuing of a fiat money – a paper money with no hard asset backing such as gold or silver – the currency lost some of its purchasing power, then the people’s confidence, and then 99% of its value.  The parallel between the Continental and the Greenback is cause for great alarm.  History repeats itself, and the history of nations crumbling as their money fails is well documented.  What is even more alarming today though is the fact that the stability of the Greenback isn’t contingent solely on American faith in its purchasing power.  Today, the Greenback and our nation’s survival are contingent on the majority of the world having confidence in the U.S. Dollar.  All leading indicators today suggest that the world is losing faith in the U.S. Dollar and are looking for ways out of holding or using the dollar – particularly to purchase crude oil.

 

Meanwhile, back on the Crawford Ranch, the war in Iraq is costing about $150 million a day and the war in Afghanistan, an additional $27 million a day.  This does not include the additional costs, the billions of dollars being pumped into these countries to fund the Bush nation building agenda.  And to fight the ambiguous War on Terror and fund all the other follies of the federal government associated with it, the Bushites are borrowing $1.74 billion per day to keep the beast fed and the people in check. Not once have we heard a Republicrat suggest that the federal government must begin to eliminate many of the 1,174 federal agencies it now funds, so that it can pay for its current priorities of Afghanistan, Iraq, and spying / controlling the world.  This should flat out piss you off!  If the War on Terror and winning in Iraq – whatever winning will look like in Iraq nobody knows – is priority one for America, then start closing the doors of every federal government agency that should not even exist in the first place.  If we need more armor, close the Department of Education.  If we need more bullets, get rid of the National Institute of Standards and Technology and the National Highway Traffic Safety Administration.  The 50 states will survive without these bureaucratic wastelands that distribute only obvious or purposely erroneous information that then gets used or misused to create draconian laws that the states are forced to enforce without funding - so shut them and hundreds like them down to fund the war cause.  The truth is that there are at least 700 federal agencies and departments that if they were shut down tomorrow, 95% of America wouldn’t even notice – so cut the waste to fund the nation’s priorities. 

 

But instead of cutting back to pay for the so-called new priorities of the nation – the self-titled fiscal conservatives just keep borrowing more money and raising the nation’s debt ceiling – the credit card limit – so that it can borrow more money to pay the finance charges on the previously borrowed money.  It is a vicious, desperate cycle.  The consequence of this foolish lack of fiscal integrity and budgetary restraint has run its course in the United States. The world has noticed and foreign governments are moving to protect their countries and people – and so they should!  Meanwhile, the U.S. Congress is ignoring reality and the writing on the wall rather than admit that the American people are about to get royally screwed.  Things are desperate my fellow Americans – so much so that not a word of truth about the debt and U.S. Dollar is ever mentioned on the evenings news.  

 

Already, the American people are beginning to pay the price by losing their homes to rising interest rates that are negatively impacting their adjustable rate mortgages.  The Fed is raising interest rates to hold back the inflation that it created by over-issuing debt notes.  Losing your home because of this fact?  How’s that feel?  Just like when an American household reaches the point when it realizes it is in debt up to its eyeballs – that it can barely pay its financial charges – so is the state of our nation.  Unfortunately, the U.S. Congress, President, and Fed refuse to take responsibility for the grave crisis that is looming by denying that the crisis even exists!  The U.S. government and the banking cartel are now merely printing dollars as fast as they can and hoping for the best. 

 

So what is the rest of the world doing to prepare for the collapse of the U.S. dollar while the American people plunge deeper and deeper into personal and national debt?  If there is a fast track to a total economic collapse in the United States today, it is foreign nations moving assets out of dollars.  Here’s what has happened in the last six months:

 

  • The United Arab Emirates said it was looking to move one-tenth of its dollar reserves into euros
  • Syria confirmed plans to use euros instead of dollars for its external transactions
  • Iran, through its soon to open, Iran Oil Bourse, an exchange meant to facilitate oil, mineral, and gas transactions in direct competition with the U.S. owned New York Mercantile Index and International Petroleum Exchange, will allow oil to be purchased with currencies other than U.S. dollars.
    • Currently, all oil purchases worldwide are transacted with U.S. dollars
    • This requires all oil consuming nations to maintain U.S. dollar reserves
    • The Iran Oil Bourse will create the option for nations to dump the dollar in favor of another currency to purchase oil
  • China, Japan, and South Korea are preparing to safeguard their economies if the U.S. dollar does in deed collapse under the weight of the record U.S. debt and trade deficits.
  • Russia has announced that it sees a need to open its own oil exchange for the sale of its oil and gas and that it wants Russian goods, commodities, and natural resources to be paid for in Rubles – not dollars
  • Venezuela has expressed interest in pricing its oil exports in euros
  • Collectively, members of OPEC - Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela – are considering a move out of U.S. dollars – the end of the petrodollar and a move to the petroeuro. 

The list goes on and on.  The world is watching.  They see the over-issuing of the U.S. Dollar.  They see the record breaking rise of our national debt, the ever-widening U.S. trade deficit, and the utter inability of the U.S. government to streamline, cut costs, and reduce spending.  They see the United States of America as what it has become; a nation of no restraint.  Since the U.S. is now the world’s largest debtor and the world’s largest oil consumer with the world’s largest trade deficit – investing in the United States and holding U.S. Dollars just doesn’t look like a wise investment decision at this time.  Foreign nations are closely monitoring what each other are doing with the dollar.  If the first sign of a mass exodus from the U.S. Dollar is suspected by any nation holding lots of dollars, all hell will break loose and the dollar will die in a single day.  It could happen tomorrow.  All the central banks around the world need to suspect is that the Asian Banks are moving out of dollars – and in a single day the United States of America will experience its second market crash that leads to its second and even worse – Great Depression.  Like a bad stock – nobody wants to be the last one out.  When an investor misses a sell off – they lose big time!  Remember Enron?  China isn’t going to lose $1 billion for our sake.  Be prepared. 

 

When this U.S. Dollar dump happens – you be sure to remember who made it possible – your friendly bankers at the Federal Reserve and their enablers in the White House and U.S. Congress.  What ever you do, DO NOT look towards the U.S. government to help you out – because somehow they eventually will but the price you will pay in personal freedom and liberty will be devastating.  Instead, those responsible should experience the wrath of a furious people on our way to abolishing the corrupt federal government and re-establishing a full-fledged constitutional republic and a sound monetary system based solely on gold or silver, never again to relinquish the printing and control of our nations’ money, the issuance of interest rates, and our nation’s overall monetary policy to filthy Rothschild formula disciples. 

 

Please understand this fact.  Every new dollar of national debt reduces the purchasing power of the dollar in your wallet.  Think about it this way.  Prices are not going up.  The value “purchasing power” of your dollar is going down.  This phenomenon is the result of the Federal Reserve System and a U.S. Congress unwilling or unable to resist the temptation to borrow money to fund its unnecessary follies.  The accumulative effect of this undisciplined fiscal policy is that the U.S. government is a mammoth beast of waste and burden that can no longer sustain itself without borrowing $1.74 billion per day.  And rather than slash government spending by eliminating 75% of all federal agencies and departments such as the nightmare waste called the U.S. Department of Education, the fools on Capital Hill seem more content to bankrupt the American people then offend the powerful lobby groups that have sprung up to defend the federal agencies they support and control. 

 

What can be done about all of this now?  It might be too late for anything to reverse this course.  Americans should contact their Congressman and Senators demanding that they do not raise the debt ceiling again.  In March 2006, the U.S. Congress raised the debt ceiling from $8.174 trillion to $8.97 trillion.  We the people must tell Congress to stop the bleeding!  The U.S. Congress needs to be told “NO” to raising the debt ceiling and “YES” to cutting the size and scope of the federal government.  If Congress refuses to listen, then let  its refusal serve as all the evidence required for the people to understand that the current members of the U.S. Congress are traitors, tyrants, and domestic terrorists hell bent on enslaving the people and destroying the nation.  Few realize how many people that now sit on positions of power in Washington DC are purposely in this pursuit.  It’s called evil and deception.  Don’t trust your government to do the right thing.  Force your government do the right thing!  Make some noise.  Raise some hell.  Be heard before you are forbidden to speak out against the federal government of the United States.  If you remain silent now, you will be silenced forever. 

 

"First they ignore you. Then they laugh at you. Then they fight you. Then you win.”  These are wise words from Gandhi.  Unfortunately, time is running out and the American people at still at “first they ignore you”.  Fierce persistence is urgently required if we the people hope to survive long enough to witness “then you win”. 


[1] U.S. National Debt Clock, The Outstanding Public Debt, June 24, 2006, http://www.brillig.com/debt_clock/, [Accessed June 24, 2006]

If you enjoyed this article, please consider donating $1 or more to the MUCKRAKER REPORT.
Your donations keep the Muckraker Report subscription free!


Comments

Freelance writer / author, Ed Haas, is the editor and columnist for the Muckraker Report.  Get smart.  Read the Muckraker Report.  [http://teamliberty.net]  To learn more about Ed’s current and previous work, visit Crafting Prose.  [http://craftingprose.com]   

Your donations keep the Muckraker Report subscription free!


Copyright 2002-2007 by MUCKRAKER REPORT.
All rights reserved.
For re-print permission, contact Ed Haas: (843) 817-9962.