Monday, October 22, 2012

My views on: Americas Biggest Threat

The biggest threat right now to America isn't Barack Obama. And it isn't the Russians, the Chinese , or the Muslims, either.

The single biggest threat to America right now....beyond any foreign army or terrorist, is the collapse of our currency caused by the awful economic policies of our government. Our leaders have, in effect, created a "Ponzi Scheme" Government.

Our national debt is impossible to pay off. Even if the government seized every penny of currency in the world, there still wouldn't be enough money to pay it off. But the national debt is a bit misleading, because a huge chunk of it is money we owe to ourselves. 

How do you pay yourself back? 

When you have been spending money you don't have, and cranking up the printing presses to produce fiat backed up by nothing but jeopardize your entire economy and your countries financial future. Usually this leads to a devaluation of your currency and difficult economic times. That additional money gets into the flow of commerce and causes prices to rise.

It isn't so much the cost of gasoline that is going up, as it is the value of a dollar that is going down.

Back when we were on a gold or silver standard, our money had real value.... But now with these irresponsible economic policies, our money and our value are disappearing before our very eyes.

The problem all started in 1971 when President Richard Nixon took our country off the Gold Standard. Prior to 1971, one U.S. dollar was the equivalent of $1 of gold held in the reserves of the United States Treasury...much of it at Fort Knox, Kentucky. 

Now, we have what is known as a "fiat currency" that holds value only because our government says it does. The basic problem with this is that investors can lose faith in a government and cause the value of their money to collapse. This often happens with stunning speed.

Quantitative Easing is a recipe for financial collapse and our government needs to stop doing it. It is a reckless policy that cheats people out of value across the globe.

Barack Obama is the biggest thief in human history. His policies have eroded so much value from our money, that the hundreds of millions of Americans -- and indeed, the billions of the people around the world who depend on US currency for their medium of exchange -- have lost trillions of dollars of wealth just based on the decline of our moneys value.

A writer on the internet pointed out the other day that our government will never go broke. They can simply print up more money, he said. That's true, but that printing will destroy the value of all the dollars currently in existence. Someday soon you might be paying $25 for an In 'N Out cheeseburger. Or $100 for a Dominos pizza.

Sure, you will make more money than ever, but your pay most likely won't keep up with the staggering inflation that "Quantitative Easing" will likely produce. We have all heard stories of the Weimar Republic in Germany, where people had to bring a wheelbarrow full of money to the store to purchase a loaf of bread.

Things are not that bad here in America...yet.

But we are headed in that direction.

We need to elect leaders who understand economics and the dangers of a money-printing policy that eventually harms everyone.