China launches new AIIB development bank as
power balance shifts
power balance shifts
Chinese President Xi Jinping launched a new international development bank seen as a
Rival to the U.S. - led World Bank
at a lavish ceremony, as Beijing seeks to change the unwritten rules of global development finance.
Despite opposition from Washington, U.S. allies including Australia, Britain, German, Italy, the Philippines and South Korea have agreed to join the Asian Infrastructure Investment Bank (AIIB) in recognition of China's growing economic clout.
"Asia's financing needs for basic infrastructure are absolutely enormous," Xi said in a speech at the launch, adding the bank would aim to invest in projects that were "high-quality, low-cost".
In order for Asia to continue to be the most dynamic region for global growth, it needs to invest in infrastructure and connectivity, Premier Li Keqiang said, during the afternoon session of the opening ceremony.
The AIIB is expected to lend $10 billion-$15 billion a year for the first five or six years and will start operations in the second quarter of 2016.
"We already have a very good pipeline of co-financing projects (with other international development banks) and stand alone projects," Jin Liqun, AIIB president, told journalists on Sunday, adding that while loans would be made in U.S. dollars, the bank may raise capital in other currencies including the euro and yuan.
DIPLOMATIC COUP
Luxembourg Finance Minister Pierre Gramegna said the establishment of the AIIB was "further proof of the rebalancing of the world economy".
A successful AIIB that sets itself apart from the World Bank and the International Monetary Fund (IMF) would be a diplomatic triumph for China, which opposes a global financial order it says is dominated by the United States and does not adequately represent developing nations.
The bank will have an internal department focused on compliance and integrity that reports directly to the bank's board, Jin said on Sunday.
Developing a good corporate culture that holds its staff to high standards was "far more important than just making loans," he said.
The AIIB will require projects to be legally transparent and protect social and environmental interests, but it will not force borrowers to adopt the kind of free-market practices favored by the IMF, sources have told Reuters.
By not insisting on some free market economic policies recommended by the World Bank, the AIIB is likely to avoid the criticism leveled against its rivals, which some say impose unreasonable demands on borrowers.
It could also help Beijing stamp its mark on a bank regarded by some in the government as a political as much as an economic project.
Thirty founding countries that hold over 74 percent of shares in the bank have ratified the AIIB agreement and the remaining countries have until the end of the year to complete the membership process, Jin said on Sunday.
Baikuntha Aryal, joint secretary at Nepal's Ministry of Finance, said the Himalayan country was hoping the AIIB would fund roads, hydropower and urban development projects.
"The AIIB is specifically for infrastructure so we see it as a supplement to projects in Nepal funded by the ADB (Asian Development Bank) and World Bank," he said.
China has an initial subscription of $29.78 billion in authorized capital stock in the AIIB, out of a total of $100 billion. It invested another $50 million on Saturday.
(Additional reporting by Nathaniel Taplin; Editing by Stephen Coates, Mark Potter and Ed Davies)
"Asia's financing needs for basic infrastructure are absolutely enormous," Xi said in a speech at the launch, adding the bank would aim to invest in projects that were "high-quality, low-cost".
In order for Asia to continue to be the most dynamic region for global growth, it needs to invest in infrastructure and connectivity, Premier Li Keqiang said, during the afternoon session of the opening ceremony.
The AIIB is expected to lend $10 billion-$15 billion a year for the first five or six years and will start operations in the second quarter of 2016.
"We already have a very good pipeline of co-financing projects (with other international development banks) and stand alone projects," Jin Liqun, AIIB president, told journalists on Sunday, adding that while loans would be made in U.S. dollars, the bank may raise capital in other currencies including the euro and yuan.
DIPLOMATIC COUP
Luxembourg Finance Minister Pierre Gramegna said the establishment of the AIIB was "further proof of the rebalancing of the world economy".
A successful AIIB that sets itself apart from the World Bank and the International Monetary Fund (IMF) would be a diplomatic triumph for China, which opposes a global financial order it says is dominated by the United States and does not adequately represent developing nations.
The bank will have an internal department focused on compliance and integrity that reports directly to the bank's board, Jin said on Sunday.
Developing a good corporate culture that holds its staff to high standards was "far more important than just making loans," he said.
The AIIB will require projects to be legally transparent and protect social and environmental interests, but it will not force borrowers to adopt the kind of free-market practices favored by the IMF, sources have told Reuters.
By not insisting on some free market economic policies recommended by the World Bank, the AIIB is likely to avoid the criticism leveled against its rivals, which some say impose unreasonable demands on borrowers.
It could also help Beijing stamp its mark on a bank regarded by some in the government as a political as much as an economic project.
Thirty founding countries that hold over 74 percent of shares in the bank have ratified the AIIB agreement and the remaining countries have until the end of the year to complete the membership process, Jin said on Sunday.
Baikuntha Aryal, joint secretary at Nepal's Ministry of Finance, said the Himalayan country was hoping the AIIB would fund roads, hydropower and urban development projects.
"The AIIB is specifically for infrastructure so we see it as a supplement to projects in Nepal funded by the ADB (Asian Development Bank) and World Bank," he said.
China has an initial subscription of $29.78 billion in authorized capital stock in the AIIB, out of a total of $100 billion. It invested another $50 million on Saturday.
(Additional reporting by Nathaniel Taplin; Editing by Stephen Coates, Mark Potter and Ed Davies)
Watch the Above Video
This will be the single largest event in human history.
This will be the first event that will touch every single living person in the world.
All human activity is controlled by money.
Our wealth, our work, our food,our government, even our relationships are affected by money.
This will be the first event that will touch every single living person in the world.
All human activity is controlled by money.
Our wealth, our work, our food,our government, even our relationships are affected by money.
Lack of knowledge to comprehend
This is a tough topic, because people either don’t won’t to believe it or are not capable because they lack the knowledge to comprehend what is being said.
When you understand that our country can only operate based on debt/credit, not physical dollars, you finally see that the USA is a huge Ponzi scheme built on nothing more that our ability to borrow money.
Our status as the world reserve currency has allowed us to borrow money that we do not have.
The government says that there are 10 trillion dollars sitting in the US Banking system that we can go and easily withdrawal. How can that be true when there only exists 1.4 trillion of real money in circulation (dollars and coins) and more than one half of that is outside the US.
This doesn’t include the 10s of trillions more that we owe other countries that have purchased our debt. If our creditors were to all come and ask for their money at one time there would be less than $1 dollar for every $1000 dollars owed.
All Great empires based on fiat currencies end in this way.
The Fed decided to bailout the corrupt bankers instead of the US citizens.
Instead of bailing out the banks, the Fed could have paid off every consumer debt in the country and freed up trillions of dollars for the consumer. Instead they padded the pockets of the banking elite.
Now they are setting things up to try one last historic cash grab.
Driving the stock market to all time highs so then can short the hell out of it. I am 58 years old and a registered professional engineer in Maryland.
I have owned 3 very different types of businesses over the past 30 years. I am now retired. I have watched hundreds of videos on the economy and done years of research into past financial failures going as back before the Roman Empire.
Dr. Paul Roberts is one of my followers and referenced me in a video I produced on Sandy Hook.
People do not want to acknowledge that the fall of fiat currencies is nothing new and that the US has made it this far ONLY because we are the default reserve currency of the world.
There have been 440 economies based on fiat currencies in modern history…. They have all come to the same demise, FAILURE. I do not believe that the US is exempt from the natural laws of economics.
You may want to research “normalcy bias”; it explains why people have a hard time excepting the true outcome of a situation that has played out the same way again and again throughout history.
I keep hearing from my friends and family that the US is different. That is true.
The US is in much deeper problem than any country in history.
The Asian Infrastructure Investment Bank (AIIB) is an international financial institution that aims to support the building of infrastructure in the Asia-Pacific region.
The bank has 57 member states (all "Founding Members") and was proposed as an initiative
by the government of China.
http://euweb.aiib.org
The bank has 57 member states (all "Founding Members") and was proposed as an initiative
by the government of China.
http://euweb.aiib.org
Participants
https://en.wikipedia.org/wiki/Asian_Infrastructure_Investment_Bank
Jordan, United Arab Emirates, Saudi Arabia, Kuwait, Oman, Qatar
Maldives, Nepal, Bangladesh, Malaysia, Philippines, Thailand
Indonesia, Laos, Myanmar, Sri Lanka
Australia, New Zealand, Singapore, Cambodia, Vietnam
Russia, TajikistanIran, Kazakhstan, India
Israel, South Korea, Mongolia, Uzbekistan
Brunei, Georgia, Pakistan, Turkey, Azerbaijan, Kyrgyzstan
China, Austria, Finland, Germany, Luxembourg, Malta,
Netherlands, France, Italy, Portugal, Spain
Denmark, Norway, United Kingdom, Iceland, Poland, Sweden, Switzerland
Brazil, Egypt, South Africa
https://en.wikipedia.org/wiki/Asian_Infrastructure_Investment_Bank
Jordan, United Arab Emirates, Saudi Arabia, Kuwait, Oman, Qatar
Maldives, Nepal, Bangladesh, Malaysia, Philippines, Thailand
Indonesia, Laos, Myanmar, Sri Lanka
Australia, New Zealand, Singapore, Cambodia, Vietnam
Russia, TajikistanIran, Kazakhstan, India
Israel, South Korea, Mongolia, Uzbekistan
Brunei, Georgia, Pakistan, Turkey, Azerbaijan, Kyrgyzstan
China, Austria, Finland, Germany, Luxembourg, Malta,
Netherlands, France, Italy, Portugal, Spain
Denmark, Norway, United Kingdom, Iceland, Poland, Sweden, Switzerland
Brazil, Egypt, South Africa
New Evidence Reveals That a Stealthy Alliance of 57 Nations Has
Formed With the Intent to Undermine America
By JL. Yastine
I'm the Investment Director at one of the largest publishing firms in the world — a firm that has over 30 offices dotting the globe from the United Kingdom to Hong Kong to Australia to Brazil…
And what I have to share with you now is the most serious threat to both our country and your financial security that I've ever come across.
Recently, a man who has met with and counseled the world's most powerful leaders including former presidents Ronald Reagan, George Bush Sr. and Bill Clinton, as well as leaders like Henry Kissinger, Donald Trump, Margaret Thatcher, Boris Yeltsin, Steve Forbes and many others…
Walked into my office, sat down, and with a calm voice that did not waver, said…
"They Betrayed Us."
Our fiercest enemies and closest allies have formed a 57-nation "alliance" … and that they have one goal: to dethrone America as the world's superpower.
"They will pull the trigger any day now," he disclosed, "obliterating our entire economy."
Taking documents from his briefcase, this man revealed how this "alliance" has already obtained a $47 trillion financial arsenal — 3 times larger than that of the United States.
And then he showed me how 27 nations are lined up to swear allegiance to this "alliance" by the end of the year.
Not wasting time, he exposed their exact plot, naming names and pulling reams of intelligence from his briefcase … diplomatic cables, photos, classified dossiers and more…
He revealed why the financial fallout from this betrayal could equate to 3 Great Depressions — striking all at once — sending tens of millions of Americans from Starbucks' lines to breadlines.
He warned: "Life savings will be vaporized by 80%. The stock market will plummet by 60%. Real estate will fall by 50%. Millions of seniors will go from luxurious retirement communities to government-sponsored nursing homes as Social Security and Medicare gets slashed."
Their plan to dethrone America
And while this 57-nation alliance hasn't formally announced their intention, and likely never will, it's hard to ignore the mountains of evidence that clearly point to their plan to dethrone America.
So, I'll ask again. What would you do if you were me, with this evidence laid before you, and the means to alert millions of unsuspecting people?
Well, I immediately assembled a team of my top researchers to help James make a presentation that explains everything in detail … just as he explained it to me.
With that said, here is Mr. Davidson ...
Singapore, Australia, China, Austria, New Zealand, South Korea, Pakistan, India and Israel.
These are just a few of the members of this 57-nation alliance.
New names are appearing on the list every day … several countries are looking to be ratified by the end of the year … Switzerland, South Africa, Saudi Arabia, Kuwait, Iran, France, Brazil … the list goes on and on.
With a $47 trillion economic arsenal, this alliance has 3 times the financial strength of the United States … soon, it could be FOUR … even FIVE times as big.
Let that sink in for a moment.
For the first time ever, the MAJORITY of the economic world has banded together in a 57-nation alliance, and the United States is on the outside looking in.
Compared to the United States, this alliance presently has 15 times the population, 6 times the land mass, and its military budget is 1.7 times bigger.
Mark my words — the economic threat this 57-nation alliance poses is bigger than anything else America will face in the years ahead.
Formed With the Intent to Undermine America
By JL. Yastine
I'm the Investment Director at one of the largest publishing firms in the world — a firm that has over 30 offices dotting the globe from the United Kingdom to Hong Kong to Australia to Brazil…
And what I have to share with you now is the most serious threat to both our country and your financial security that I've ever come across.
Recently, a man who has met with and counseled the world's most powerful leaders including former presidents Ronald Reagan, George Bush Sr. and Bill Clinton, as well as leaders like Henry Kissinger, Donald Trump, Margaret Thatcher, Boris Yeltsin, Steve Forbes and many others…
Walked into my office, sat down, and with a calm voice that did not waver, said…
"They Betrayed Us."
Our fiercest enemies and closest allies have formed a 57-nation "alliance" … and that they have one goal: to dethrone America as the world's superpower.
"They will pull the trigger any day now," he disclosed, "obliterating our entire economy."
Taking documents from his briefcase, this man revealed how this "alliance" has already obtained a $47 trillion financial arsenal — 3 times larger than that of the United States.
And then he showed me how 27 nations are lined up to swear allegiance to this "alliance" by the end of the year.
Not wasting time, he exposed their exact plot, naming names and pulling reams of intelligence from his briefcase … diplomatic cables, photos, classified dossiers and more…
He revealed why the financial fallout from this betrayal could equate to 3 Great Depressions — striking all at once — sending tens of millions of Americans from Starbucks' lines to breadlines.
He warned: "Life savings will be vaporized by 80%. The stock market will plummet by 60%. Real estate will fall by 50%. Millions of seniors will go from luxurious retirement communities to government-sponsored nursing homes as Social Security and Medicare gets slashed."
Their plan to dethrone America
And while this 57-nation alliance hasn't formally announced their intention, and likely never will, it's hard to ignore the mountains of evidence that clearly point to their plan to dethrone America.
So, I'll ask again. What would you do if you were me, with this evidence laid before you, and the means to alert millions of unsuspecting people?
Well, I immediately assembled a team of my top researchers to help James make a presentation that explains everything in detail … just as he explained it to me.
With that said, here is Mr. Davidson ...
Singapore, Australia, China, Austria, New Zealand, South Korea, Pakistan, India and Israel.
These are just a few of the members of this 57-nation alliance.
New names are appearing on the list every day … several countries are looking to be ratified by the end of the year … Switzerland, South Africa, Saudi Arabia, Kuwait, Iran, France, Brazil … the list goes on and on.
With a $47 trillion economic arsenal, this alliance has 3 times the financial strength of the United States … soon, it could be FOUR … even FIVE times as big.
Let that sink in for a moment.
For the first time ever, the MAJORITY of the economic world has banded together in a 57-nation alliance, and the United States is on the outside looking in.
Compared to the United States, this alliance presently has 15 times the population, 6 times the land mass, and its military budget is 1.7 times bigger.
Mark my words — the economic threat this 57-nation alliance poses is bigger than anything else America will face in the years ahead.
It's bigger than Iran's nuclear ambitions. It's bigger than the threat of Islamic terrorism.
And it's bigger than an all-out war with any number of our enemies.
Most unnerving of all, the evidence I've uncovered suggests this new 57-nation alliance has a clear plan to take America's economy down. It won't entail an attack in any military fashion … no guns or missiles will be needed. Their plan is much more calculated and stealthy than that.
One of my sources, an Austrian economist, disdainfully called their mission "a little experiment in revenge," as one of the leaders of this alliance attacked America by saying
it is "like a parasite."
When they achieve their goal … and they will … millions of unsuspecting
Americans will be crushed under an economic bombshell
that will leave a trail of financial devastation unlike anything we've ever seen.
The stock market will collapse by 60% … wiping out $21.4 trillion in wealth, home values will get slashed in half … erasing $13.8 trillion in equity … and as my insider from the CIA says, "The dollar is going to collapse 80% or 90%," obliterating $9.5 trillion in savings.
A white paper distributed from yet another source describes the aftermath of the attack well:
And it's bigger than an all-out war with any number of our enemies.
Most unnerving of all, the evidence I've uncovered suggests this new 57-nation alliance has a clear plan to take America's economy down. It won't entail an attack in any military fashion … no guns or missiles will be needed. Their plan is much more calculated and stealthy than that.
One of my sources, an Austrian economist, disdainfully called their mission "a little experiment in revenge," as one of the leaders of this alliance attacked America by saying
it is "like a parasite."
When they achieve their goal … and they will … millions of unsuspecting
Americans will be crushed under an economic bombshell
that will leave a trail of financial devastation unlike anything we've ever seen.
The stock market will collapse by 60% … wiping out $21.4 trillion in wealth, home values will get slashed in half … erasing $13.8 trillion in equity … and as my insider from the CIA says, "The dollar is going to collapse 80% or 90%," obliterating $9.5 trillion in savings.
A white paper distributed from yet another source describes the aftermath of the attack well:
"There will be block after block of empty stores and boarded-up houses. Foreclosures will be epidemic. There will be long lines at soup kitchens and many, many homeless."
Simultaneously, food prices will jump up as much as 300%
and gas prices will increase to $6.00 per gallon
… before making their way up to $7.00 and even $8.00 a gallon.
I know what I'm saying may seem ludicrous.
But, you should know, I was mocked by political titans and global elites when I predicted the fall of the Soviet Union back in 1989.
Of course, if they had known what I knew … and if they had the connections that I had … they would've understood that the fall of the Soviet Union wasn't mere speculation, it was a glaring certainty.
My friend, you are about to know what I know … using the connections that I have … so that you can fully understand that America's terrible day is not mere speculation, but rather a glaring certainty.
It is too late for our country to reverse course and avoid the devastation ahead. Indeed, I spent 40 years of my life fighting for our country under 8 presidential administrations.
Testifying numerous times before Congress on behalf of American citizens.
But, I find hope in knowing that it's not too late for you, as long as you pay heed to the following presentation, and implement the simple plan I will lay out for you over the next few minutes.
Let's get started…
America's Secret Weapon to World Domination
In order for you to grasp the enormity of what's about to unfold, it's vital that you understand the untold story behind how America became the No. 1 superpower … the secret of our economic might.
You see, most people think that the key to America's superiority comes from the breadth of our military.
Others think that it comes from the strength of our economy and our game-changing technologies.
Many believe our superpower status comes from having the longest-running constitutional republic in the world.
Candidly, while all of these help make America great, none of them are the secret to our superpower status.
That's because there is only one thing that drives a country to being the No. 1 superpower in the world.
Henry Kissinger, a controversial American diplomat and adviser to nearly every U.S. president since Richard Nixon … and a man I've had the opportunity to meet through my work with Nelson Rockefeller … understood this secret well.
Simultaneously, food prices will jump up as much as 300%
and gas prices will increase to $6.00 per gallon
… before making their way up to $7.00 and even $8.00 a gallon.
I know what I'm saying may seem ludicrous.
But, you should know, I was mocked by political titans and global elites when I predicted the fall of the Soviet Union back in 1989.
Of course, if they had known what I knew … and if they had the connections that I had … they would've understood that the fall of the Soviet Union wasn't mere speculation, it was a glaring certainty.
My friend, you are about to know what I know … using the connections that I have … so that you can fully understand that America's terrible day is not mere speculation, but rather a glaring certainty.
It is too late for our country to reverse course and avoid the devastation ahead. Indeed, I spent 40 years of my life fighting for our country under 8 presidential administrations.
Testifying numerous times before Congress on behalf of American citizens.
But, I find hope in knowing that it's not too late for you, as long as you pay heed to the following presentation, and implement the simple plan I will lay out for you over the next few minutes.
Let's get started…
America's Secret Weapon to World Domination
In order for you to grasp the enormity of what's about to unfold, it's vital that you understand the untold story behind how America became the No. 1 superpower … the secret of our economic might.
You see, most people think that the key to America's superiority comes from the breadth of our military.
Others think that it comes from the strength of our economy and our game-changing technologies.
Many believe our superpower status comes from having the longest-running constitutional republic in the world.
Candidly, while all of these help make America great, none of them are the secret to our superpower status.
That's because there is only one thing that drives a country to being the No. 1 superpower in the world.
Henry Kissinger, a controversial American diplomat and adviser to nearly every U.S. president since Richard Nixon … and a man I've had the opportunity to meet through my work with Nelson Rockefeller … understood this secret well.
If You Want to Dominate the World
You Have to Dominate the Money!
You Have to Dominate the Money!
You see, it's not a matter of who has the MOST money, it's who DOMINATES the money … the one who prints it and distributes it.
They're the ones who create the rules everyone else must follow.
HISTORY
Take for instance the Roman Empire.
Rome didn't dominate the Western world solely because of the strength of its army.
It ruled because it "dominated the money."
When Rome conquered a territory, they forced the local communities to use denarii as their currency.
As the empire expanded, people would have been hard-pressed to feed their family, buy land or pay their debts if they didn't have enough denarii on hand.
And as more and more citizens around the world relied on denarii to live their lives, Rome could dominate the world by dominating the money.
But once denarii lost its value, the world stopped using it, and Rome's day of reckoning came like robber in the night.
The Dutch East India Company / 1700s
"Dominating the money" is the same way the Dutch controlled the world in the 1700s.
When the Dutch East India Company began to spread around the world through global trade with their monopoly of the spice routes, the Dutch guilder became the world's "reserve currency."
But like Rome before it, when the Dutch East India Company fell, so did the guilder — ushering in the Netherlands' day of reckoning.
The United Kingdom / The British Pound
"Dominating the money" is the same way Britain controlled the world. The British pound took over as the world's reserve currency when the United Kingdom became the biggest exporter of goods and services in an empire that stretched from Shanghai to Sheffield.
And "dominating the money" is the same way the United States has dominated the globe since the end of World War II.
You see, after the war, London had been turned into a pile of rubble and this global financial center became a shell of its former self.
The world was desperate for economic stability / After the War
So 44 nations came together in Bretton Woods, New Hampshire, to devise a stable economic system.
They laid out the ground rules for a newly created International Monetary Fund (IMF) to be located in Washington D.C. and, more importantly, they anointed the U.S. dollar as the "new global reserve currency."
In other words, the world had to accept and use U.S. dollars as a common currency. This allowed the United States to "dominate the money" and therefore "dominate the world." It's been our secret weapon to superpower status for the last 70 years.
Now, when the U.S. dollar was proclaimed the new "global reserve currency" back in 1946, all 44 nations unanimously supported it.
Well, all 44, except for 1.
One lone holdout knew that making the dollar the world reserve currency gave America too much power.
And now — after more than 7 decades of pent-up resentment and anger at America's dominance of the world --
the leader of this country publicly attacked America by declaring:
"They are living like parasites off the global economy and
their monopoly of the dollar."
This leader has rallied these 57 nations to support his cause.
And it's not just countries like Russia, Vietnam, Thailand, Qatar, Egypt, Turkey, Jordan.
Many of our allies have joined this alliance, betraying their allegiance to the United States.
Nations like Sweden, Iceland, Poland, Portugal and Spain are looking to be ratified this year.
Norway, Jordan, Germany, Denmark and Finland are on the list too.
The list goes on and on ...
These 57 nations already represent 62% of our global economy … that's 3 times the
economic power of the United States.
And more countries are lined up to join … indeed, 27 are scheduled to be ratified by the end of 2016.
I will reveal the exact plans of this 57-nation alliance in a minute, and how it will lead to 80% of your savings getting wiped out, a 60% stock market collapse, a 50% real estate downfall, massive unemployment, the end of Social Security and eventually … hyperinflation.
My point is … just as the Roman,
Dutch and
British empires rose and fell from power previously,
America has risen to power; however, its day of devestation is here.
At any moment, this secret war will be won and your wealth will be vaporized … unless you follow my plan of action.
But first, to grasp the events that are about to unfold, it's important for you to understand how having the world reserve currency gave America a tremendous amount of leverage.
"Dominating the Money"
Fueled Cheap Goods, Millions of Jobs and FREE Dollars.
Since the Allies anointed the U.S. dollar as the world reserve currency in 1946, America has enjoyed amazing growth and prosperity.
Now, let me take a moment to explain what world reserve currency means.
In simple terms, a "reserve currency" is the money that major financial institutions like the IMF are required to keep on hand.
It's the "trusted money" that can be used to pay off debts and settle transactions between countries, and to price items like gold, oil, iron and other commodities.
So if Malaysia wants to buy iron from Brazil, they have to change their Malaysian ringgits to dollars and then buy the iron.
After all, what Brazilian is going to want a pocketful of Malaysian ringgits on the beach in Rio?
And if Saudi Arabia wants to buy vegetables from France ... or if Germany wants to buy rice from Thailand ... each buyer has to exchange their home currency into U.S. dollars before they buy.
In fact, nearly every nation around the globe has to change their currency to U.S. dollars to settle their international transactions — except the United States, of course.
And there are multiple advantages to being the world's reserve currency.
I'll list off just a few of them:
- Advantage 1: We Have a Never-Ending Supply of Cheap Goods …
The first advantage is that we get all of our imported goods at a steep discount … up to 50% off. That's right — everything we import is discounted because it is priced in U.S. dollars. And considering we import about nearly $3 trillion worth of goods a year, the savings are huge.
It's virtually Christmas every day as Santa arrives at ports all over America with ships full of all sorts of goodies and gadgets.
We pay less than other countries when we import French wine, German cars, Japanese televisions and nearly a half-a-trillion dollars in Chinese goods.
Or take energy. Remember the pain of paying $4.00 per gallon of gas just a few years ago? Well if you were in France, after changing euros to dollars and importing your oil, you would have paid $7.50 per gallon.
And in Turkey, you would have paid nearly $10 per gallon.
So, in sum, everything we import is cheap, saving U.S. citizens trillions of dollars. But, as you can imagine, if we ever lose our reserve currency status, all these goods will jump in price … I will show you exactly how much in a moment.
- Advantage 2: A Nonstop Trillion-Dollar Industry Fuels Our Economy
The second advantage of being the world's reserve currency is that it fuels an entire new business opportunity for all Americans … a very, very, very lucrative business opportunity — finance.
Take a look at this chart from the Bureau of Economic Analysis to see my point.
Since 1946, when the dollar became the world reserve currency, business resulting from finance has gone up 104%.
Trillions of dollars are funneled through U.S. financial centers and into the economy as America becomes the global financial hub for all business transactions.
- Advantage 3: Uncle Sam's "No Limit" Credit Card
The third advantage is massive.
We get to print as much money as we want (with one caveat, as I will explain in a moment).
We print this money through our central banking system — the U.S. Federal Reserve.
As you may know, the Federal Reserve is a group of 12 unelected officials who "regulate" our economy through financial engineering.
If the Federal Reserve — aka the Fed — wants to juice up the economy, they print money. However, they don't call it "printing" — that would be too obvious. So they do this through various means … buying Treasurys, reducing interest rates and so forth.
Now, most countries can't print money like this willy-nilly. If they print a bunch of money, their currency becomes less attractive to own.
That's not the case with the U.S. dollar. As long as it is the world reserve currency, the U.S. dollar will always be in demand from foreign central banks because they are required to have money in reserve in their accounts.
So, the Federal Reserve … this group of 12 unelected officials … can basically print as much as they want.
And boy, do they print.
They print, print, print … because their buddies in Washington — who appointed these 12 members of the Federal Reserve — know that printing money artificially inflates the economy … and a "strong economy" gets them votes!
For example, America has had its share of economic setbacks. - But they are nothing in comparison to what happened in 1929
- when the stock market crashed.
- But since then, because we are the world reserve currency, we have had the privilege of printing our way out of messy times.
- As you can see from this chart, when the dot-com collapse hit, Washington printed money with abandon and the stock market soared.
When the Great Recession hit, they did it again through bailouts, quantitative easing and interest-rate reductions. We are essentially "depression-proof."
So, in sum, since 1946 when the U.S. dollar was anointed the world reserve currency, America has dominated the money, and we have therefore dominated the world.
We have an endless supply of cheap goods — often at a 50% discount compared to the rest of the world. We have a trillion-dollar industry through global finance. And every time our economy gets shaky, our Federal Reserve can print more money.
But … just like the Roman, Dutch and British empires all faced their difficult time.
America is now facing a very difficult time
The stock market will collapse by 60% (likely more) …
home values will get slashed in half …
and unemployment will triple.
Grocery bills will double while Social Security and Medicare payouts get slashed.
Nobody will be spared.
Even those who "play it safe" will feel the pain as 80% of personal savings will be vaporized.
Now remember, I will show you my personal plan for sidestepping the carnage in a moment.
Just understand, America's secret weapon — possessing the "world reserve currency" —has propelled our superpower status, but that is about to blow up in Washington's face.
Our Secret Weapon... Turned Against Us
You see, our economy is a lot like this town. Crystal Beach, Texas, is known for its sandy white shoreline. That is its strength. It looks ideal, doesn't it?
Nice houses on the coastline. I'm sure the homes are priced high and the interiors are fit to be featured on HGTV. When the owners go to bed, they likely hear the waves lapping up on the shoreline, and they think about how blessed they are to have such a home. Well, America is a lot like this beach town. A great place to be.
However, while Crystal Beach looks beautiful in this picture, it didn't stay beautiful, as its strength — the beautiful, white sandy beaches — became its weakness.
In 2008, Crystal Beach's terrible day hit through the 143-mph winds and rising tides of Hurricane Ike. After one day of brutal force, nothing was left … except for all those sandy white beaches.
The same will happen to America. Our secret weapon — our world reserve currency status, our strength — will become our weakness.
Right now, a hurricane is brewing. While we count our blessings at night, the tide is rising, and the wind is picking up … and we are not prepared for the brute force that is fast approaching. Our day is here.
Allow me to prove it to you.
Take a look at this same chart I showed you earlier.
Since 1946, our economy has made trillions as our finance industry grew 104%.
However, take a look at this other line on the chart. It reflects manufacturing. It is down 60%. In simple terms, we are a country that no longer manufactures "stuff" … we are a country that manufactures "dollars."
This is a BIG problem.
Manufacturing should be a cornerstone of any sound economy. It is a solid foundation built upon a rock. However, finance has become the cornerstone of our economy, which makes us a beautiful house built upon sand.
If we lose our world reserve currency status … our foundation gets washed out from underneath us, and our economy will collapse.
And the negative side effects of being a FIRE economy don't stop there.
Since we are a country of finance, Americans have become addicted to easy money.
Simply put, America's economy runs on debt.
For example…
If Johnny wants to go to college, he gets a loan.
If Johnny wants to buy a house, he gets a loan.
If Johnny wants a new car, he gets a loan.
If Johnny wants a new tablet, he puts it on a credit card.
The point again here is this: Debt is fueling our growth, not manufacturing … not REAL production, not even real income.
These startling charts prove my point…
Americans are strapped with more than $1.2 trillion in student loans. A mind-blowing record level … going up tenfold in the last decade.
Americans are burdened with nearly $13 trillion in mortgage debt — again, marching up to 2008 highs.
Americans are drowning in $914 billion of credit-card debt, marching up to the all-time highs we saw in 2008.
And our politicians are even worse. Just take a look at our Federal debt.
It's a national embarrassment.
At this rate, our debt is parabolic, which means it will continue to increase at a steeper incline. It has tripled since 2000. So, if we continue just at this same pace, we will quickly surpass $30 trillion.
In fact, when you total up all the debt of nonprofits, corporations, municipalities, government agencies, financial companies, brokerage firms, banks and credit unions, America is looking at a massive debt burden of $62 trillion.
However, as a nation, we only produce about $18 trillion worth of stuff … that's our "GDP."
Yet our total credit market — the way all that "stuff" is financed — sits at $62 trillion, nearly THREE and A HALF times the size of everything we produce.
Think about it. In order to keep our economy producing enough stuff to keep millions of people employed and bringing home a paycheck, we have to get people to take on more and more debt.
It's an easy-money addiction.
Being the world reserve currency has made our country look great, but the reality is that our economic foundation is highly fragile … just like the houses that once dotted the shoreline of Crystal Beach.
And, as I said earlier, there is one other big caveat to the Fed printing reams of money. It's the No. 1 rule they can't break.
The Fed can continue to do all of this — printing money to their hearts content — for as long as they want … as long as they don't lose the world's trust.
Remember, the world reserve currency is defined as the "trusted currency."
But, if our elected officials lose people's trust, America loses its world reserve currency status.
We will no longer dominate the money.
We will no longer dominate the world.
And right now, global leaders — 57 nations to be exact — haven't just lost their trust in the U.S. dollar:
They have become outraged and disgusted with the way our leaders in D.C. have been acting.
Twenty-seven nations are set to be ratified into this alliance by
the end of this year!
The New 57-Nation
Alliance … ExposedIt all started in 1946.
Remember that one lone holdout from the Bretton Woods agreement I told you about earlier?
Remember how all 44 nations voted unanimously to have the U.S. dollar anointed as the world reserve currency?
All of them, except one.
Well, that one nation was the Soviet Union…
They knew back then, like Henry Kissinger and I believe, that if you dominate the money,
you dominate the world.
And today, 7 decades later, Russia is quietly corralling this alliance of nations that have lost trust in the U.S. dollar and that are fed up with a dollar-dominated world.
These recent headlines have exposed Russia's intent…
Early on, many of our leaders dismissed Russia's threats, just like they dismissed the threat from ISIS.
However, things spiraled out of control when 23 nations quickly joined this new alliance in late 2014…
They Abandoned the U.S. Dollar
Now, it was no surprise when Eastern countries like India, Saudi Arabia and South Korea quickly jumped on board.
But on December 3, 2015, everything changed…
The United Kingdom — America's closest ally — didn't just join this new alliance —they became a "founding member."
Many saw it as the ultimate betrayal since they did it despite Washington publicly begging them not to join. There was even a headline in Reuters.
"U.S. Urges Allies to Think Twice
Before Joining the 57-Nation Coalition"
But the United Kingdom, for the first time in 70 years, ignored their plea.
Business Insider called it "a massive embarrassment for Obama."
The Huffington Post called this action "the end of the American century."
Forbes reported: "Britain's decision is just a recognition of new realities."
Once Britain joined the alliance, Australia, Italy, France, Germany and many more followed suit by the end of the month.
And in just the last few weeks, 9 nations — including Israel, Denmark and Finland — made the final step to becoming a member of this alliance.
How many more will join in the days ahead?
Will it be Mexico to our south or Canada to our north?
Sources say that Chrystia Freeland, Canada's trade minister, is "looking closely" at it..
Fact is, the only nations that have not expressed interest in joining are Japan, Colombia and the United States.
This alliance has already reached the key milestone for global dominance … these 57 nations represent 62% of the world's economic power … 3 times the economic power of the United States.
An alliance with 15 times the population, 6 times the land mass and a military budget 1.7 times bigger than the United States.
Bottom line…
They are the majority / We are the minority
In the months ahead, we could see this alliance go from representing 62% of world economic power up to 70%, perhaps even 80%. It will only take a few more countries to get there.
Indeed, 27 nations are set to be ratified into the alliance by the end of this year.
And their intent is clear … dominate the money, dominate the world.
Here's what makes me gravely concerned.
Combined, Russia and China have 30 times more voting power than each of the other 55 nations.
Which prompted a contact of mine to send me an email titled "Russia and China Join Forces to Kill the U.S. Dollar."
Another source titled their white paper "Russia and China: The Dawning of a New Monetary System, " calling their plan "a little experiment in revenge."
My team even uncovered a speech Putin gave to a bunch of young Russians, where he said America is "living like parasites off the global economy and their monopoly of the dollar."
Russia and China, who, combined, hold 30 times more voting power than the average member of this 57-nation alliance, are tired of America "dominating the world" and they are ready to do whatever it takes to win that seat.
They know our world reserve currency status is our secret weapon — and they have a plan to use our strength against us.
They've Already Declared a Currency War
This alliance of 57 nations has already, albeit stealthily, declared a currency war. A war in which they have "pointed a gun" directly at the dollar.
They've already completed the first 3 of their 4-phase plan of attack.
Right now, a hurricane is brewing. While we count our blessings at night, the tide is rising, and the wind is picking up … and we are not prepared for the brute force that is fast approaching. Our day is here.
Allow me to prove it to you.
Take a look at this same chart I showed you earlier.
Since 1946, our economy has made trillions as our finance industry grew 104%.
However, take a look at this other line on the chart. It reflects manufacturing. It is down 60%. In simple terms, we are a country that no longer manufactures "stuff" … we are a country that manufactures "dollars."
This is a BIG problem.
Manufacturing should be a cornerstone of any sound economy. It is a solid foundation built upon a rock. However, finance has become the cornerstone of our economy, which makes us a beautiful house built upon sand.
If we lose our world reserve currency status … our foundation gets washed out from underneath us, and our economy will collapse.
And the negative side effects of being a FIRE economy don't stop there.
Since we are a country of finance, Americans have become addicted to easy money.
Simply put, America's economy runs on debt.
For example…
If Johnny wants to go to college, he gets a loan.
If Johnny wants to buy a house, he gets a loan.
If Johnny wants a new car, he gets a loan.
If Johnny wants a new tablet, he puts it on a credit card.
The point again here is this: Debt is fueling our growth, not manufacturing … not REAL production, not even real income.
These startling charts prove my point…
Americans are strapped with more than $1.2 trillion in student loans. A mind-blowing record level … going up tenfold in the last decade.
Americans are burdened with nearly $13 trillion in mortgage debt — again, marching up to 2008 highs.
Americans are drowning in $914 billion of credit-card debt, marching up to the all-time highs we saw in 2008.
And our politicians are even worse. Just take a look at our Federal debt.
It's a national embarrassment.
At this rate, our debt is parabolic, which means it will continue to increase at a steeper incline. It has tripled since 2000. So, if we continue just at this same pace, we will quickly surpass $30 trillion.
In fact, when you total up all the debt of nonprofits, corporations, municipalities, government agencies, financial companies, brokerage firms, banks and credit unions, America is looking at a massive debt burden of $62 trillion.
However, as a nation, we only produce about $18 trillion worth of stuff … that's our "GDP."
Yet our total credit market — the way all that "stuff" is financed — sits at $62 trillion, nearly THREE and A HALF times the size of everything we produce.
Think about it. In order to keep our economy producing enough stuff to keep millions of people employed and bringing home a paycheck, we have to get people to take on more and more debt.
It's an easy-money addiction.
Being the world reserve currency has made our country look great, but the reality is that our economic foundation is highly fragile … just like the houses that once dotted the shoreline of Crystal Beach.
And, as I said earlier, there is one other big caveat to the Fed printing reams of money. It's the No. 1 rule they can't break.
The Fed can continue to do all of this — printing money to their hearts content — for as long as they want … as long as they don't lose the world's trust.
Remember, the world reserve currency is defined as the "trusted currency."
But, if our elected officials lose people's trust, America loses its world reserve currency status.
We will no longer dominate the money.
We will no longer dominate the world.
And right now, global leaders — 57 nations to be exact — haven't just lost their trust in the U.S. dollar:
They have become outraged and disgusted with the way our leaders in D.C. have been acting.
Twenty-seven nations are set to be ratified into this alliance by
the end of this year!
The New 57-Nation
Alliance … ExposedIt all started in 1946.
Remember that one lone holdout from the Bretton Woods agreement I told you about earlier?
Remember how all 44 nations voted unanimously to have the U.S. dollar anointed as the world reserve currency?
All of them, except one.
Well, that one nation was the Soviet Union…
They knew back then, like Henry Kissinger and I believe, that if you dominate the money,
you dominate the world.
And today, 7 decades later, Russia is quietly corralling this alliance of nations that have lost trust in the U.S. dollar and that are fed up with a dollar-dominated world.
These recent headlines have exposed Russia's intent…
- Putin Targets U.S. Monetary System — Zero Hedge
- Putin Wants U.S. Dollar Banned from Russian Trade — ValueWalk
- Russia Shuns Dollar — The Wall Street Journal
Early on, many of our leaders dismissed Russia's threats, just like they dismissed the threat from ISIS.
However, things spiraled out of control when 23 nations quickly joined this new alliance in late 2014…
They Abandoned the U.S. Dollar
Now, it was no surprise when Eastern countries like India, Saudi Arabia and South Korea quickly jumped on board.
But on December 3, 2015, everything changed…
The United Kingdom — America's closest ally — didn't just join this new alliance —they became a "founding member."
Many saw it as the ultimate betrayal since they did it despite Washington publicly begging them not to join. There was even a headline in Reuters.
"U.S. Urges Allies to Think Twice
Before Joining the 57-Nation Coalition"
But the United Kingdom, for the first time in 70 years, ignored their plea.
Business Insider called it "a massive embarrassment for Obama."
The Huffington Post called this action "the end of the American century."
Forbes reported: "Britain's decision is just a recognition of new realities."
Once Britain joined the alliance, Australia, Italy, France, Germany and many more followed suit by the end of the month.
And in just the last few weeks, 9 nations — including Israel, Denmark and Finland — made the final step to becoming a member of this alliance.
How many more will join in the days ahead?
Will it be Mexico to our south or Canada to our north?
Sources say that Chrystia Freeland, Canada's trade minister, is "looking closely" at it..
Fact is, the only nations that have not expressed interest in joining are Japan, Colombia and the United States.
This alliance has already reached the key milestone for global dominance … these 57 nations represent 62% of the world's economic power … 3 times the economic power of the United States.
An alliance with 15 times the population, 6 times the land mass and a military budget 1.7 times bigger than the United States.
Bottom line…
They are the majority / We are the minority
In the months ahead, we could see this alliance go from representing 62% of world economic power up to 70%, perhaps even 80%. It will only take a few more countries to get there.
Indeed, 27 nations are set to be ratified into the alliance by the end of this year.
And their intent is clear … dominate the money, dominate the world.
Here's what makes me gravely concerned.
Combined, Russia and China have 30 times more voting power than each of the other 55 nations.
Which prompted a contact of mine to send me an email titled "Russia and China Join Forces to Kill the U.S. Dollar."
Another source titled their white paper "Russia and China: The Dawning of a New Monetary System, " calling their plan "a little experiment in revenge."
My team even uncovered a speech Putin gave to a bunch of young Russians, where he said America is "living like parasites off the global economy and their monopoly of the dollar."
Russia and China, who, combined, hold 30 times more voting power than the average member of this 57-nation alliance, are tired of America "dominating the world" and they are ready to do whatever it takes to win that seat.
They know our world reserve currency status is our secret weapon — and they have a plan to use our strength against us.
They've Already Declared a Currency War
This alliance of 57 nations has already, albeit stealthily, declared a currency war. A war in which they have "pointed a gun" directly at the dollar.
They've already completed the first 3 of their 4-phase plan of attack.
- Phase I: Blatantly Ignore the Bretton Woods Agreement
The first phase is to blatantly ignore the Bretton Woods Agreement. The agreement clearly states that all international trade is to be done in U.S. dollars. However, as Brazilian economist Ricardo Amaral recently said: "The U.S. dollar served its purpose since the end of WWII and became the major foreign-exchange reserve currency ... (but) the days of the U.S. dollar playing that special role ... has reached the end of the line ... today that system is very sick."
China and Russia have already created their own $24 billion currency swap, and then did a $450 billion energy trade, directly … completely sidestepping the U.S. dollar.
Others are joining in.
- Phase II: Create Their Own International Monetary Fund
Phase II is to create their own International Monetary Fund (IMF). For the last 70 years, the IMF, located in Washington D.C., has fostered "global monetary corporation."
Now, this 57-nation alliance has come together to rival the IMF with their own umbrella organization — based in Beijing, China.
It's called the AIIB.
The Wall Street Journal revealed that "China will retain the upper hand as the largest shareholder." Russia is right there behind it.
Guess what? The bank opened for business on December 25.
Harvard President and Former U.S. Secretary of the Treasury Larry Summers shared his reaction: "I can think of no event since Bretton Woods that is comparable to this new institution," and said it was "the moment the United States lost its role as the underwriter of the global economic system."
Even U.S. Treasury Secretary Jack Lew warned that "America's international credibility and influence is under threat" from this World Bank rival.
- Phase III: Create Their Own Currency
ABC recently reported: "China is calling for a global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy."
An article in China leaked that "a basket of currencies called the 'AIIB currency' would most likely be adopted as the bank's currency for settlements."
Once these 57 nations agree on this basket of currencies, the dollar is doomed.
Now, I admit, when they release this new currency, which could be any day now … you likely won't hear about it … simply because the media, Wall Street and our elected officials fail to understand the ramifications of such an action.
Think of that beautiful beach town. When a tropical depression is formed miles out at sea, the beach is not affected. Those in the town go about their merry way, listening to the waves lap upon the shore. Little do they know that a hurricane has formed … and it's moments away from destroying their lives.
Mark my words, this financial hurricane will hit. When it does, it will be unexpected, and it will hit hard. It will be like three Great Depressions striking at once.
Because with this new World Bank — the AIIB — these 57 nations already control 62% of the world's economic power.
Therefore, this World Bank has the ability to spread their new currency all around the globe.
And with 27 nations being ratified into the alliance in 2016, the American dollar is a
"dead man walking."
The dollar and America have a very difficult time.
All this 57-nation alliance has to do is complete phase IV of their plan…
Phase IV: Trigger the Dollar
Collapse
Phase IV is to pull the trigger on the dollar collapse.
And they will do this by selling it in droves. It's already started.
This chart reflects the disturbing trend.
They went from buying $20 billion to selling $48.1 billion in U.S. Treasurys, the highest single monthly outflow on record … right after the United Kingdom signed on to the alliance.
News headlines are picking up on this…
The Wall Street Journal reported: "Central banks around the world are selling U.S. government bonds [dollars] at the fastest pace on record … sales by China, Russia, Brazil, and Taiwan." — The Wall Street Journal
CNN says … "China leads global U.S. debt dump."
Wolf Street warned…"China, Russia, Norway, Brazil, Taiwan Dump U.S. Treasurys."
Barron's envisions "China's Sale of U.S. Debt — Beginning of the End?"
And Zero Hedge didn't mince words when it said: "Foreign Central Banks Furiously Dumping U.S. Treasurys."
Now, as this 57-nation alliance dumps the dollar, the greenback will start to collapse.
And fast.
The Federal Reserve knows this.
Which is why they are going in and buying their own debt. Just take a look at this chart. Our own Federal Reserve now holds more of its own debt than any other time in history. Nobody else will buy it. So they have to go in and buy it.
In fact, The Wall Street Journal reports that the Federal Reserve is buying 61% of its own debt.
That's like paying off one credit card with another.
And we can do that, because we are the world reserve currency — we have an unlimited credit card. But that card is days away from being "declined."
Again, you probably had no idea this was going on. Like a tropical storm out at sea … nobody notices. When that hurricane hits, we will be like that beach town … and all that we will have left is plenty of sand — or, in this case, plenty of worthless dollars — as our economy comes crashing down.
24 Hours After America's Disastrous Day
One day … maybe in a week from now, maybe in a few months from now … the full force of the financial hurricane will hit our shores.
You will wake up to the reality that the dollar is no longer the "world reserve currency."
A white paper distributed by Project Censored describes what that world will look like:
The impact on daily living for the U.S. population could be severe.
In addition to increased costs, states and cities will see their pension funds drained.
The government will be forced to sell off infrastructure, including roads and transport, to private corporations.
People will be increasingly charged for privatized utilities that were once regulated and subsidized.
Commercial and private real estate will be worth less than half its current value.
The negative equity that already plagues 25 percent of American homes will expand to include nearly all property owners.
It will be difficult to borrow and impossible to sell real estate unless we accept massive losses.
There will be block after block of empty stores and boarded-up houses.
Foreclosures will be epidemic.
There will be long lines at soup kitchens and many, many homeless.
Extreme?
Allow me to give you some proof behind some of these statements.
7 Major Fallout
- Day of Fallout No. 1: The Collapse of the Dollar
The dollar will collapse, almost overnight.
Just look at what happened when the British pound lost its world reserve currency.
It instantly dropped by 30% as nations converted their pounds to dollars. Soon after, the pound lost a total of 50% of its value, decimating the wealth of millions of everyday folks in the United Kingdom.
James Rickards, a former adviser for the CIA and author of the book Currency Wars, said: "The dollar is going to collapse 80% or 90% or more … when a collapse happens, it will happen quickly. You won't see it coming."
So, to hedge yourself against this, you have to find investments that go UP when the dollar goes DOWN.
In a moment, I will show you exactly how to do that.
- Day of Fallout No. 2: Prices of Everything You Buy Will Double
Secondly, the price of everything we buy will double.
And not just because "when the dollar goes down, prices of every day goods go up."
That is just the start.
Remember, one of the benefits to being the world reserve currency is that it's Christmas every day on our shorelines. Everything we import from other countries is marked down as much as 50%.
Once we lose "world reserve currency" status, that is gone. Christmas is over.
Expect gas to go up to $6.00 a gallon … before going up to $8 and $9 a gallon. It's a certainty when you couple the loss of reserve status with hyperinflation that will crush the value of the dollar.
Everything will go up … meats, cereals and electronics. Everything.
- Day of Fallout No. 3: Unemployment Triples
Right now the unemployment situation doesn't look too bad.
But once the dollar is no longer the "world reserve currency," that financial sector will be blindsided. And while you might not be in that industry, those people make billions of dollars that they use to buy stuff — houses, cars, gadgets and more.
My point is, there will be a ripple effect. I expect unemployment to triple.
- Day of Fallout No. 4: End of Social Security
Without the ability to print money, the 161 million Americans who have some form of government benefits will get hit hard.
While many of these programs need to be done away with, many valuable ones will go with them … such as Social Security and Medicare. People receiving these have contributed to society and deserve to be taken care of. Just look at these charts.
As you can see, their rate of Social Security payouts is unsustainable. And the same is true for Medicare. After America's day of reckoning, major cutbacks on these will have to be made. Expect it to happen in the next year.
Even expect pension payments to get cut. Again, as you can see, these increases in government pensions cannot continue…
- Day of Fallout No. 5: Taxes Will Double
Tax breaks will be wiped off the books as Washington tries to stave off the carnage. This chart reflects how much money the U.S. government is collecting per year. It's gone up nearly 50% in the last 5 years alone. Expect your overall taxes to increase from 30% to 40% to 50% and higher.
- Day of Fallout No. 6: Real Estate Will Plummet
Home prices are going to fall by 50% in the next few years. As you can see from this chart, they have been marching back up to the high prices we saw in 2006. But when the dollar collapses, the economy collapses and thus, real estate collapses. Prices will head down as there will be rows and rows of unsold homes.
- Day of Fallout No. 7: Stocks will Collapse by 60% (or More)
- Every time there is a financial meltdown in America, the Fed prints more money to get us out of it.
Well, when the dollar gets rejected as the world reserve currency, that luxury is gone.
That is part of the reason the 1929 crash was so bad … that was before the dollar was the world reserve currency, so we couldn't print our way out of it. And this next stock market crash will just be like 1929 … but 3 times worse … because we have inflated the market to the moon by turning on the printing presses.
The stock market will drop 60%. Probably as high as 80%. That might sound extreme, but it isn't. All the market has to do is go back to previous lows for that to happen.
Whether we want to admit it or not, we knew this day was coming.
People everywhere are hesitant and worried. You see it in their faces and it in their conversations.
- If there is one asset that has exploded in value during times of crisis, it's gold.
Gold went up 300% during the 2008 crisis. However, today, it is far off its peak … and selling on the cheap.
When this next crisis hits, gold will again go up 300%, before going up even higher.
That's enough to turn a $10,000 investment into $30,000.
Preparation for what's to come, China secretly bought 604 TONS of gold since 2009, second only to … you guessed it, Russia.- Why one popular gold ETF could give you exposure to surging gold, but could also leave you insolvent, as markets get crazy … it is imperative that you AVOID it! There is an alternative that will give you better returns and allow you to cash out when you are ready.
- Why you should skip buying gold bars … even if you're a Rockefeller. Invest in the single best way in physical gold.
- Try to bypass dealer fees that could rob you of 20% of your invested capital.
Like the Romans, the Dutch and the British before us, once the faith and trust in world's reserve currency was broken, the financial devastation came quickly.
The financial devastation will strike us quickly too.
The hurricane is on its way and will breach our shores at any moment.
This 57-nation alliance is seeing more and more nations join their cause every month …
27 will be ratified this year.
It already controls 62% of the world's economy; as more nations sign on, it's only a matter of time before they control 70% … 80% … or more of the economy.
Whether we want to admit it or not, we knew this day was coming.
People everywhere are hesitant and worried.
You see it in their faces and it in their conversations.
Like the unseen physical change of ions in the atmosphere that signal a hurricane is imminent,
even before the clouds darken and lightning strikes, the premonitions of a new collapse
are already in the air.
One person after another, each in his own way, senses that time is running out and the day of devastation is here.
The exact things that happened to Rome, the Netherlands and Britain will happen to us.
America's day is here. It's going to be bad. Really bad.
People everywhere are hesitant and worried.
You see it in their faces and it in their conversations.
Like the unseen physical change of ions in the atmosphere that signal a hurricane is imminent,
even before the clouds darken and lightning strikes, the premonitions of a new collapse
are already in the air.
One person after another, each in his own way, senses that time is running out and the day of devastation is here.
The exact things that happened to Rome, the Netherlands and Britain will happen to us.
America's day is here. It's going to be bad. Really bad.
However, please know, that this is not the end of America.
The core principles of our Founding Fathers will rise again …
and America will be mightier than ever.
Just like Crystal Beach eventually came back with houses built stronger and higher,
America will be built again.
But it will take several decades for that happen.
New leaders will have to emerge … leaders who truly understand what caused this
devastation and are ready to build this country on a firm economic foundation.
The core principles of our Founding Fathers will rise again …
and America will be mightier than ever.
Just like Crystal Beach eventually came back with houses built stronger and higher,
America will be built again.
But it will take several decades for that happen.
New leaders will have to emerge … leaders who truly understand what caused this
devastation and are ready to build this country on a firm economic foundation.