The U.S. dollar is on life support and Obama is holding the plug. The dollar could literally collapse overnight. This is just a basic hint of just how bad things have gotten and how bad they are going to get. The Federal Reserve owns almost two trillion dollars in Treasury Notes and other investments, and is charging interest. They say that the purchases were to create 'Quantitative Easing,' therefore, keeping the interest rates artificially near zero. This has the same effect as printing money, with nothing to back it up. Interest rates will go up, beginning in 2015. We will have to pay the Fed back, unless we wise up and abolish it.
Speaking of printing money, we are doing it hand over fist. As long as the dollar is the World's Reserve Currency, we will continue to 'paper over' the debt. The more money we print, the worse the overall situation gets. In the very near future, the dollar will be replaced with a global currency. As it stands now, if China wants to purchase oil from Russia, they will have to get the Yuan exchanged for dollars to pay the Russians, and vise-versa. Now, many countries are deciding to not involve the dollar at all in their exchanges. China, Japan, Russia, France, and United Arab Emirates are already setting up what will eventually be the global currency. If China calls in the U.S. debt they are holding right now, it would crush this country.
The dollar is not doing any better here in America. The unemployment rate is an artificial figure that does not reflect the true rate, which is around 13%. One in six Americans is on food stamps. Every state is in danger of bankruptcy, at least the ones where it is legal to file bankruptcy.
In March of 2010 our government, in their infinite wisdom, passed the Foreign Account Tax Compliant Act (FATCA). This and H.R. 2847, the Hire Incentives to Restore Employment on July 1, 2014, are going to crush foreign investments. Basically, if you keep money in offshore accounts, the foreign banks have to report it to the IRS, Form 1099. In addition, these foreign banks have to report all of your personal information and account activity. American banks will no longer be allowed to issue international wire transfers. The foreign banks that do accept accounts from Americans are having to pay outrageous fees; if they do not comply, even more fees. So, foreign banks are no longer interested in Americans. Too much hassle, too many fees, and non-compliance is not an option. This is a banking 'Barney Fife' moment, and our government shot themselves in the foot. This disgust with the American financial system is affecting all sectors, stocks, bonds, the stock market, and the dollar. Ex- patriots are at the point where they are giving up US citizenship because of the horrendous American taxes, not just on what they make, but also on any property they or their spouse own. Even if their spouse is foreign, the spouse's income is taxed, too.
And if all of this does not worry you. If you think I'm just being negative. Consider this. George Soros just dumped a ton of money into the markets. France upheld a conviction of felony insider trading by George Soros and fined him 2.9 million dollars. In his home country of Hungary, he was convicted of illegal market manipulation and was fined 2.2 million dollars. He has a history of collapsing the economies of countries. Ask England.
"The main obstacle to a stable and just world order is the United States." -George Soros
"...malignant, messianic, narcissist..." -Jim O'Neill
"George Soros is an evil man. He's anti-God, anti-family, anti-American, and anti-good." -Reverend Jesse Lee PetersonDon't forget to Like Freedom Outpost on Facebook, Google Plus, & Twitter. You can also get Freedom Outpost delivered to your Amazon Kindle device here.