Hope is an idea that is hard to explain. For instance, I hope that the Tampa Bay Buccaneers win the Super Bowl again this year. Hey, there's still that chance! I hope, ignoring all facts, history and logic that Walt Disney is in a cryogenic chamber right now waiting for the cure for the cancer that killed him. That is not a hope that I anticipate becoming a reality, but I can still hold out that hope, because I want it to be true.
We have hope that the dollar collapse can be stalled. That hope falls somewhere in between the Bucs winning the Super Bowl and Walt emerging from the cryogenic chamber ready to work on more Disney magic. Note, I said stalled, not stopped. When I wrote Preparing for the Coming Collapse of the US Dollar and The Last Domino, there was an urgency in getting the material to be available because of the acceleration of the policies of the current administration that seemed to be pushing for the downfall of our economy, our freedom, and capitalism in general.
I wrote the books because every other book on the topic spent 90 percent of the book discussing why the collapse was coming and what America as a whole could do about it. There was nothing in any of these books about what a family with nominal to low income levels could do to be ready. I didn't care about the why's, I cared about what I could do to prepare. Now, though, it's time to look at the why's. It is from these 'why's' that we can see a tiny sliver of hope.
Our dollar is collapsing because:
1. Since being removed from the gold standard, there is no base value for the dollar anymore. It is worth what the government says it is.
The recent trouble with the Euro and Greece defaulting on the loans made to it by the European union have caused the declining value of our dollar to actually look good when compared to the Euro. Since our economies are so intertwined with European nations, a collapse of the Euro would cause an almost instant collapse of the dollar to zero value. If Germany leaves the European currency in favor of printing Deutschmarks again, the Euro would not be able to absorb the difference and one more bailout of Greece would destroy it's value.
2. The nations that have been funding our debt due to outrageous spending by both political parties are backing out of buying our debts. China, Brazil, Russia, Mexico and five other nations have agreed to stop dealing in the American dollar. China has sold over 90 percent of their holdings in US short term treasuries. These nations have lost confidence in our ability to repay these debts because of liberal and moderate spending policies. It's akin to the 45 year old son who can't keep a job who is living off Mom and Dad and is blowing through the money they keep loaning him. Eventually, the loaning stops.
3. Quantitative Easing 2, 3 and 4. Since we are facing a shortage of cash from our "parents" China and the other nations, the great idea of the Federal Reserve is to print cash money so that we can buy our own debt. Each round of QE decreases the value of our dollar a little bit more. The Fed is counterfeiting the dollar legally.
4. Cap and Trade is Obama's and also the favorite son of the media for the GOP nomination, Mitt Romney's efforts to increase energy costs, causing them according to Obama's own words to, "necessarily skyrocket". These increases will lead to panic, energy rationing, and a Jimmy Carter-esque period in our history.
So where is the "hope"? The hope is in time. If the time is available to us, we can reverse the course on spending. We can reverse course on the concept that the rich "owe" us something more than what they pay in taxes. We can get a pro-business Congress and Senate in place in 2012. We need to push to elect the conservative option, though. Romney and a few of the other GOP candidates that are aptly named RINO's will not stop or slow down the collapse of the dollar. A true conservative will have a better chance at being effective in that endeavor.
The hope is in the rebellion against Obama from those within his own party. The current "push" to replace him with Hillary or a more centrist type liberal may give the GOP an edge in the next election. His own people are seeing the devastating effects of his Marxist agenda. For the most part, the people in his cabinet and in other leadership positions agree with him. The more moderate Democrats are clamoring, albeit quietly, for another candidate.
Yes we have hope that the collapse could be years away, slowed down by attempting to do what is right, instead of the underhanded political games that we have endured for generations. And as soon as I can, I'm gonna ask Walt what he thinks of the whole issue.