Will the Dollar lose it's status as the World's Reserve Currency?
Have you wondered why every day we hear about a new European country that is defaulting and the U.S. who owes more debt than any other country in the entire world has not defaulted? The reason is that we have the dollar and the dollar is the world's reserve currency, when we get into debt all we have to do is turn on the printing press. That's the benefit of having the world's reserve currency. Germany doesn't have that perk, neither does Italy or Portugal or any other country.
Up until 1990 we were the largest creditor nation, today that has been completely undone and reversed. Today we are the MOST indebted country in the ENTIRE WORLD.
Other countries like China and Russia as well as the IMF, the U.N. and the World Bank are starting to call for the end of the dollars reign. And now that we have lost our triple A rating it's inevitable. Not only do we consume too much but we produce too little. When is the last time you looked and saw "Made in the U.S.A. embossed on anything? In order to repay the national debt America must work and America must make things! There is no way that we can repay the national debt. As of this writing according to the national debt clock the national debt is over 17 trillion dollars, if you include interest it's over 55 trillion dollars. The estimated population of the United States is 310,332,468 so each citizen's share of this debt is just under $175,000! The National Debt has continued to increase an average of $4.09 billion per day since September 28, 2007! Just let that sink into your brain for a few minutes...We can't even pay the interest on this kind of debt!
If oil is no longer priced in dollars the price of oil will literally skyrocket for Americans which will affect almost every area of American life as well as the rest of the world. Everything that we consume will become more expensive, food, clothes, cars, gas, medicine...everything will skyrocket overnight! Think about it, we cannot pay for the social welfare state that we have now, we have to borrow now to fund Social Security, Medicare, Welfare. States are on the verge of bankruptcy now...what will happen when this happens?
Interest rates will go up, stock prices will plummet and it will be very difficult to get a loan. Not only will this affect America but it will affect the entire world. Countries that depend on America to buy their goods, secure their country and keep the world in a semi-peaceful state will be greatly affected. Other countries that are kept in check by America may take advantage of the melee.
I really hate to be the bearer of all this doom and gloom but if you know what is good for you you will start to prepare for this inevitable state. Start buying and storing food, plant as large a garden as you can, if you have to buy a large purchase...buy it now! Buy silver and gold (it's always been a hedge against inflation and goes up in times of upheaval). During the Wiemar Republic when it took a wheelbarrow full of paper money to buy a loaf a bread, it only took a handful of gold coins to buy an entire row of townhouses!
I hope that by some miracle this doesn't occur, I hope that I am miscalculating or some great invention like the internet forestalls this catastrophe. However, isn't it better to prepare for the worst and hope for the best? Most people will not know what hit them when this happens because the vichy media is not warning people, most people will be broadsided and good. I hope that you are not one of them.
**If you would like to earn money writing for hub-pages click here:http://hubpages.com/_earnmoneywriting
Related Articles by Brie Hoffman
The National Debt is OVER 14 Trillion Dollars!
More by this Author
Are we heading for a depression worse than the Great Depression of the 1930's? I think so and here is why.
Just the term "balanced budget" makes me yawn. But this is so very important for the health of our economy that I felt compelled to explain why a balanced budget is so crucial.
So you want to go off the grid? Finding a place to do that can be just as hard as going off the grid. Here are some tips to help you find the right place.