There is a Rasmussen poll out which notes that 82% of the American people believe that economic challenges to the United States are a bigger threat than military challenges. Whether or not the public understands all the intricacies the economy, financial crisis or international finance, they do know that something is very wrong – not the least of which is a $1.5 trillion US budget deficit this year alone.
What they may not fully understand is that those “economic challenges” include the fact that the dollar is gradiently ceasing to be world’s reserve currency.
What does this mean?
From 1944 to 1971 the United States had agreed with other countries that the United States would exchange dollars presented to the Treasury for gold. Because of the massive spending for the Vietnam War, putting billions of dollars out into the environment and subsequent demand for gold from other countries, Richard Nixon shut the gold window in 1971. This meant we no longer agreed to exchange gold for dollars.
However, at that time an agreement was put in place whereby all oil had to be purchased in US dollars. Since oil is something all countries needed, it forced the central banks of other countries to keep US dollars in their vaults. This also extrapolated out to other foreign trade resulting in virtually all international trade being conducted in dollars.
Thus, the Federal Reserve could print as many dollars as it wanted and other central banks would have to keep them to hand because international trade was conducted in dollars.
As noted in my book, Crisis by Design the Untold Story of the Global Financial Coup, the purpose of the financial crisis was to take down the US dollar as the stable point in international finance and in the midst of this chaos, to replace it with a global monetary authority (GMA). The intention here was to move the power of the world economy from the US to a global financial dictator. A GMA was put in place in 2009. This entity, called the Financial Stability Board resides in the Bank for International Settlements in Basel, Switzerland.
The destruction of the US dollar as the world reserve currency is still occurring.
As the dollar continues to erode in value, so too does its status as the world reserve currency.
Two things happen as a result: our ability to fund our debt by printing money indiscriminately disappears; and, secondly, as the value of the dollar decreases on world markets in relation to other international currencies, the cost of the goods that are imported from other countries such as Japan, China, Germany, become much more expensive .
Congress must reign in deficits, but they must also review the agreement signed by the President in 2009 at the G-20 meeting in London creating the global monetary authority AND, along with other governments, institute a system of oversight and checks and balances over the Bank for International Settlements and the entity within that bank called the Financial Stability Board, as they are now issuing policy to the world’s central banks with no oversight whatsoever.
Keep your powder dry.