Today comes the news that the International Monetary Fund "has set a date for the moment when the 'Age of America' will end and the U.S. economy will be overtaken by that of China" -- just five years from now in 2016. The significance of this? As we move towards that direction, there is an extremely high risk that the U.S. loses its status as having the world's reserve currency -- the impact of which would be devastating to the U.S. economy and could well even usher in a monetary and economic collapse in the United States.Not that any of this is really new. It's been in the air for at least a year. You've probably heard on the radio these "End of America" commercials. I checked out that dude's website recently, and he's not talking about some over-the-top preposterous event occurring. Instead, he's just talking about the very same thing -- the end of the American dollar as the world's reserve currency. There's hardly anything new or original about that. He just says it will occur this year, which I do tend to doubt. But make no mistake -- it's coming.
If we lose the world's reserve currency status, say Goodnight Sweet Prince to Obama's favorite economic policy of simply printing more money to pay off debt. That won't work anymore. Instead, printing a bunch of more money at that point will result in massive hyper-inflation, e.g. something you're paying $5 for now may quickly cost $15 or $30 or $50. Great Depression all over again.
What's the solution? Reverse course. Drastically cut federal spending and the massive size of the federal government. At a minimum, start balancing our annual federal spending budget. But no one seems serious about doing these things. The democrat party couldn't care less and often almost seems like it wants an economic collapse so that a new far leftist state can rise from the ashes (free of all those damn pesky "restraints" of the U.S. Constitution).
Some radical leftists have made this clear as their goal. Am I at the point where I'm going to specifically accuse the likes of Obama of wishing this? No. Because I can't see inside the man's head. But I'm not going to put it past him either, because he has been an absolutely destructive president, along with W. Bush.
Meantime the republicans don't seem serious about reversing course either. Few of them have any balls, real convictions or principles. That's how we get that shameful 2011 budget deal a few weeks ago that was a complete fraud, as detailed in this space. Shit, the republicans are just as responsible for the current dire situation, given all of the huge budget deficits of the Bush years, not to mention the massive amounts of new debt added through the fighting of an unnecessary bullshit war in Iraq and remaining in Afghanistan long after we should have been out.
And as for today's news about the IMF's prediction, I note that I see this story appearing on the right-winger DrudgeReport and right-winger Fox News. Incredibly, but not so shockingly, a quick perusal this morning of websites of left-leaning CNN and Politico.com and leftist propaganda outlets MSNBC, ABC and CBS found not one single story or mention of today's IMF news. That's because, after all, bad economic news doesn't jive so well with the best interests of Obama or the democrat party.
Instead, what you get from those outlets are myriad stories that tend to prop up the economics of Obama's beleagured presidency, such as: Stories pointing a finger at Big Oil for high gas prices; Stories trying to say that last week's S&P downgrade in the U.S. credit ratings outlook was actually a blessing in disguise; and Stories detailing and listing out the worst of America's gas guzzling vehicles. Sad, sad stuff, all the way around.
http://www.marketwatch.com/Story/story/print?guid=25965F12-6D1A-11E0-8CAB-00212804637C
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