July 11, 2010
Back in January Lindsey Williams’ insider sources told him the dollar will be devalued within a year. In response, oil and food prices will rise significantly and the elite and banksters will move assets into gold and silver.
|The United Nations says the dollar must be replaced as the world’s reserve currency.|
On Friday Fortune reported that central banks are now abandoning the dollar as the world’s reserve currency. Morgan Stanley says the dollar is rapidly losing its status. “We already knew that central banks have preferred gold to dollars,” writes Fortune, but it now “seems that those central banks prefer almost anything to dollars.”
Both the United Nations and the IMF urge dumping the dollar as the world’s reserve currency. Last year, both China and Russia questioned why the dollar should hold this status.
The dollar is unsafe because of the U.S. national debt. Over the last few years bankster grocery clerks in Congress and the White House have managed run up an astronomical debt and this has destroyed the dollar. As Fortune notes, two weeks ago America’s debt went up to $166 billion in a single day, a single day run-up greater than the entire U.S. annual deficit in 2007.
Fortune, of course, blames the American people for all of this, not the banksters and their buddies in the district of criminals. “Americans, the world’s consumers, continue much of the behavior that helped the U.S savings rate drop so low,” writes Heidi N. Moore.
Savings? Since the creation of the Federal Reserve in 1913, the dollar has lost 96% of its purchasing power. In other words, $100 today buys only 4% of the amount of good or services that it would have in 1913. On January 1, 1914, the Consumer Price Index was 10.0. The CPI was 30.9 in 1964 and last year it was 211.1.
“This means that prices have risen 683% since 1964. The only problem is that your wages have not risen at the same rate, even using the government manipulated CPI. Using a true CPI figure, average weekly earnings are 64% below what they were in 1964. This explains why a family of five could live well with one parent working in 1964, but even with both parents working and using debt in prodigious amounts, the average family does not live as well today,” writes Jim Quinn.
- A d v e r t i s e m e n t
Dollar devaluation is directly related to the size of the national debt. Currency loses it value when government is unable to pay off its debt. The amount of debt owed by the U.S. government to the banksters is unpayable. If all money owned by all American banks, businesses and individuals was rounded up and sent to the government, there would not be enough to pay off the national debt. It is mathematically impossible to pay it off.
The government tells us the national debt is somewhere around $12.8 trillion. “As shocking as that massive number is, however, it is just a fantasy — a tiny fraction of the gargantuan amount our government really owes,” writes Lorimer Wilson. “In addition to that official $12.8 trillion national debt, Washington has written $108 trillion in off-budget, unfunded IOUs on Social Security, Medicare, Medicaid, its prescription drug program, its veterans benefits programs and its Federal pension programs that must also be paid.”
Dollar devaluation is a natural response — in an unnatural fiat money system — to government debt.
Take the case of Argentina. In 2001, the Argentine peso was pegged to the U.S. dollar. Argentina, however, was unable to pay its debt in early 2002 and the peso was devalued. The result was rampant unemployment and poverty. The regime of Domingo Cavallo imposed austerity on the people (as the IMF insisted it do) and this resulted in a general strike and a state of siege against the people by the government.
In February the credit ratings agency Moody’s Investor Service warned that the U.S. is at risk of losing its AAA credit rating. “The US government may be forced to devalue the dollar if … investment rating agencies (Fitch, Moody’s, Standard & Poor’s) down-rate the value of US Treasury bonds as they should,” writes author Bill Sardi. “Government cannot meet all its obligations and promises by raising taxes on the wealthy. Its only option now is to officially devalue the dollar, probably by 30%.”
In 2008, as the engineered global financial crisis was beginning to pick up steam, trend forecaster Gerald Celente said that the dollar would eventually be devalued by as much as 90 per cent. Celente’s track record is impeccable. He successfully predicted the 1997 Asian Currency Crisis and the subprime mortgage collapse. “The consequence of what we have seen unfold this year would lead to a lowering in living standards,” notes Celente’s blog, Trends & Forecasts.
|Trend forecaster Gerald Celente predicts dollar devaluation.|
None of this is a mistake. The euro is following the dollar down the tubes. The IMF and the United Nations suggest replacing these currencies with special drawing rights (SDRs), an international reserve asset that is used as a unit of payment on IMF loans and is made up of a basket of currencies. “A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency,” a United Nations report states.
During the G20 confab in 2009 plans were announced for implementing the creation of a new global currency. “There is now a world currency in waiting,” a communiqué released by the G20 stated. “The creation of a Financial Stability Board looks like the first step towards a global financial regulator” and thus a world bank as a component of one-world government.
In 2008 Obama’s Treasury Secretary Timothy Geithner said after attending a Bilderberg meeting that the Federal Reserve should play a “central role” in a new global banking regulatory framework. The banksters are diligently putting all their pieces into place.
“Ultimately, what this implies is that the future of the global political economy is one of increasing moves toward a global system of governance, or a world government, with a world central bank and global currency,” writes Andrew Gavin Marshall, “and that, concurrently, these developments are likely to materialize in the face of and as a result of a decline in democracy around the world, and thus, a rise in authoritarianism. What we are witnessing is the creation of a New World Order, composed of a totalitarian global government structure.”
Marshall notes that the very concept of a global currency and global central bank is authoritarian and removes any vestiges of oversight and accountability away from the people toward a small, increasingly interconnected group of international elites.
Marshall cites Carroll Quigley: “[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.”
In order for this long sought after agenda to be successful America and its currency must be destroyed. As noted by Fortune, central banks around the world are now picking up the pace in the abandonment of the U.S. dollar as the world’s reserve currency. It is part of the plan and so is the destruction of America’s middle class now underway.
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