With
the Crimea referendum passed and Russia ready to annex the region, the
United States and the European Union have threatened sanctions. The full
extent of these sanctions is not yet known, and announcements are
pending for the end of March. If these measures are concrete, they will
of course be followed inevitably by economic warfare, including a
reduction of natural gas exports to the EU and the eventually full dump
of the U.S. dollar by Russia and China. As I have discussed in recent
articles, the result of these actions will be disastrous.
For those of us in the liberty movement, it is now impossible to
ignore the potential threat to our economy. No longer can people claim
that “perhaps” there will be a crisis someday, that perhaps “five or 10
years” down the road we will have to face the music. No, the threat is
here now, and it is very real.
The loss of the dollar’s world reserve status will destroy the only
thread holding up its value, namely, investor faith. There are only two
possible outcomes from that point onward:
A) The U.S. will be forced to default because no
nation will purchase our Treasury bonds and support our debt spending,
causing the dollar’s value to implode.
B) The Fed will choose to restart and expand
quantitative easing measures, confiscate pension funds, raid bank
accounts or issue new taxes in order to keep the system afloat; this
will also end in the eventual collapse of dollar value and
hyperinflation.
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