The Impending Collapse of the US Economy
The collapse of the US economy will have disastrous impact on US and the world. This coming economic collapse is the consequence of the myriads of debacles and problems created by US itself in which it is unable to find a solution. However, US always puts the blame on other countries for its selfmade problems. So it is now racheting up hostilities throughout the world. It hopes to solve its selfmade problems through wars so that it can abscond with the trillions of dollars in debts that it owed to many countries notably China, Japan and Middle East Arab countries.
Let it be known that in the past few hundred years Western countries especially the Five Eyes of the Anglo-Saxon UK, USA, Canada, Australia and New Zealand have grown rich and prosperous only through invasions, killing, cheating, stealing, robbing, looting and enslaving of other non-white people's lands and countries.
The US had abused and weaponised the Petro Dollar and had confiscated hundreds of billions of dollars of other countries like Russia, Venezuela, Iraq, Iran, Libya, Syria and many more others. It has victimised these countries with illegal sanctions and stopping their use of SWIFT, an America controlled international currency exchange agency. This has caused immense pain and suffering to the citizens of these victimised countries.
Now many countries headed by Russia, China, India and Iran have conducted their trade and commerce in their own currencies. Many more countries in ASEAN, Africa, Middle East and South America have decided to conduct trade using their own currencies.
With the trend of ditching the Dollar gaining momentom it will have a detrimental effect on the US economy. It will greatly affect and impoverish the American citizens notably the middle class and the poor. Neverthess the Americans have it so good as free riders on this Petro gravy train and benefitted from the fiat dollar for over seventy years at the expense of all other countries. It looks like it is now going to be pay back time for the Americans.
With the ditching of the Gold standard as a medium of exchange in 1944 and the subsequent use of the fiat dollar the United States has had a strangle hold on other countries economically, politically and militarily. The US uses its controlled IMF and World Bank, two international currency and financial institutions to leverage on its control of other countries. The United States and its main Western European allies will fund countries or regimes that align with US policies. It will impoverish and bankrupt countries that do not follow American dictates and thus make these victimised countries forever indebted to the US and its allies. The end result is US exerting almost total control over these countries which are coerced to let US built military bases in their countries.
The United States got rid of the Gold standard so as to achieve its evil agenda of world hegemony and unilateralism under US dictatorship. Below are some quotations from Phil Butler's article in New Eastern Outlook which is self explanatory.
"The primary purpose of remaining off the gold standard is that the government can print money endlessly, with two primary goals. First, a massive defense budget and needless proxy wars would not be possible if the United States were on the gold standard. Secondly, the people who control the central banks cannot extract interest on national debts that are currently out of control. So, the fiat currency supposedly backed by the “full faith and credit” of the government, the dollar, is worth what lying politicians and finance ministers say it is.
One look at the worldwide bond market reveals a disturbing imbalance. The U.S., which now has over $51 trillion in outstanding debt, has borrowed more to finance wars and programs than China, Japan, Germany, Italy, France, the U.K., and Canada combined. The American taxpayer is responsible for almost 40% of all the foreign debt in the world. And the outlook for the short and long-term future could not be better.
President Joe Biden wants to borrow even more when his administration conducts a proxy war against Russia in Ukraine. With billions flowing into Europe’s most corrupt country, Americans are on the precipice of an economic catastrophe not seen since the Great Depression."
"According to the Bipartisan Policy Center in Washington and the Congressional Budget Office, the government will no longer be able to pay everyone — including bondholders, Social Security recipients, and federal employees — sometime this summer or early this fall. A New York Times report from late March outlines the situation. But the problem is far worse than many experts suggest. No matter which way lawmakers move, the U.S. has almost insurmountable fiscal issues. The ramifications will be dire whether or not they raise the debt limit. And if the BRICS countries go off the dollar as a trade currency… Well.
Many experts predict that American greenbacks won’t be worth the printed paper if the world stops using the U.S. dollar as its world currency reserve. Moreover, if the dollar loses its value significantly, every American who owes a credit card loan or a home mortgage will find it ten times harder to pay off those debts.
To make matters worse, millions of jobs will be sacrificed for the Federal Reserve to get any financial stability. Analysis from RSM International shows that the central banks must “induce” a recession to get America’s economic situation in check. And the dollar being made useless by the larger world community was not a factor in their analysis.
The bottom line is if we were still on the gold standard, this would be fine. The gold standard reduced the risks of such economic crises and recessions. Income levels were higher when we were on the bullion-backed system. More importantly, the gold standard created hard limits on printing money and limiting military spending.
As confidence in the dollar wanes and U.S. policy overseas gets more aggressive toward BRICS nations and others, the tipping point of the American hegemony draws closer."
The crux of the problem is that US is 'riding on the ever fearful tiger and is unable to dismount without injuring itself. The Anglo-Saxon United States is by far the most wicked country in the world. It has endless diabolical plans and actions to destabilise other countries. It instigates and foment wars and turmoils among other countries instead of bringing peace to all countries as what China has been doing. It creates endless political and economic problems for other countries and impoverish these countries to make them suffer and indebted to US. It enjoys and cheerish at the suffering of other countries.
The United States is riding on the proverbial tiger of the US Pentagon Military Industrial Complex, a monster that commands 70 percent of the US economy and contributes as much to its GDP. It is at the heart of the US economy and therefore US evily creates perennial wars to keep the Pentagon Industrial Complex on going and its economy running. Thus US provoked the Ukraine War and is not interested in any suggestion to stop the war. It is angry at the peace accord between Saudi Arabia and Iran as brokered by China. It never stops interfering in China's internal affairs and has been provoking China over the Chinese sovereign territory of Taiwan hoping to lure China into an open warfare with Chinese traitors in the island. Besides Taiwan US has been maniacally creating uncalled for issues and problems in the South China Sea intending to create turmoils and wars between China and some ASEAN countries. It is also trying to provoke a war between Japan and China, between India and China and between North Korea and South Korea. US is fearful that if perennial wars come to an end its Pentagon Military Complex will grind to a full stop and thus causing the total collapse of the American economy and the ultimate demise of the Evil American Empire.
The United States is so wicked and evil that it had destroyed many small and weak countries. It is now trying to incite and plan a regime change in Russia and China. However in taking on Russia or China the Evil Empire will definitely meet its nemisis. The signs are in the air that US will soon face dire retribution or Karma or Pow-ing in Chinese as US economy shows signs of collapsing and as more and more countries ditch the Petro dollar and deserts the untrustworthy United States.
Southernglory1
Saturday, 29th April. 2023
Highlight of this article - Escobar: De-Dollarization Kicks Into High Gear
ReplyDelete'It is now established that the US dollar’s status as a global reserve currency is eroding. When corporate western media begins to attack the multipolar world’s de-dollarization narrative in earnest, you know the panic in Washington has fully set in.
The numbers: the dollar share of global reserves was 73 percent in 2001, 55 percent in 2021, and 47 percent in 2022. The key takeaway is that last year, the dollar share slid 10 times faster than the average in the past two decades.
Now it is no longer far-fetched to project a global dollar share of only 30 percent by the end of 2024, coinciding with the next US presidential election.
The defining moment – the actual trigger leading to the Fall of the Hegemon – was in February 2022, when over $300 billion in Russian foreign reserves were “frozen” by the collective west, and every other country on the planet began fearing for their own dollar stores abroad. There was some comic relief in this absurd move, though: the EU “can’t find” most of it.'
The de-dollarization train has been propelled to high-speed status by the accumulated effects of Covid-linked supply chain chaos and collective western sanctions on Russia.
The fall of a weaponized currency will end up smashing the whole logic behind the US’ global network of 800+ military bases and their operating budgets.
The Davos/Great Reset globalist combo, for all practical purposes, declared war on oil immediately after the start of Russia’s Special Military Operation (SMO) in Ukraine. They threatened OPEC+ to isolate Russia – or else, but failed humiliatingly. OPEC+, effectively run by Moscow-Riyadh, now rules the global oil market.
The catch is that most oil producers prefer not to keep large stashes of yuan; after all, everyone is still used to the petrodollar. Cue to Beijing linking crude futures in Shanghai to converting yuan into gold. And all that without touching China’s massive gold reserves.
Dumping the dollar already has a mechanism: making full use of the Shanghai Energy Exchange’s future oil contracts in yuan. That’s the preferred path for the end of the petrodollar.
The Hegemon – clinging to a toxic cocktail of neoliberalism, sanction dementia, and widespread threats – is bleeding from within. De-dollarization is an inevitable response to system collapse. In a Sun Tzu 2.0 environment, it is no wonder the Russia-China strategic partnership exhibits no intention of interrupting the enemy when he is so busy defeating himself.
Link to article:
https://www.zerohedge.com/geopolitical/escobar-de-dollarization-kicks-high-gear
https://photos.app.goo.gl/d5FpbWXLacoEu99B6
ReplyDeleteThis video of Russia's Powess killing the Urukians and NATO Military so called Advisors.
Americunts Fighter Planes cannot take off without proper runways.
How to fight?
Even if the collapse of the USA economy is not imminent, but a certainty, their problems are insurmountable.
ReplyDeleteTheir debt of US$31.4 trillion, is beyond any possibility of being repaid. That begs the question of who is going to buy up their debts going forward. And what if they default this time around, the whole house of cards will collapse. I think they are working on collapsing it so they do not have to repay, since there is no solution in human existence to deal with that.
Of course, without question, despite the Congress soap opera expected to put on a good show, they will keep kicking the can further down the road by increasing the debt limit for certainty, and continue making hay while the sun still shines by spending as if there is no tomorrow. And with that they will keep printing toilet papers in exchange for tangible goods from the rest of the world, with the silly sheeps propping up the predatory Hegemon.
People see America as being like a family that took out too large a mortgage, and will have a hard time making the monthly payments.
ReplyDeleteThis is, however, a really bad analogy in at least two ways.
First, families have to pay back their debt. Governments don’t — all they need to do is ensure that debt grows more slowly than their tax base. The debt from World War II was never repaid; it just became increasingly irrelevant as the U.S. economy grew, and with it the income subject to taxation.
Second — and this is the point almost nobody seems to get — an over-borrowed family owes money to someone else; U.S. debt is, to a large extent, money we owe to ourselves.
This was clearly true of the debt incurred to win World War II. Taxpayers were on the hook for a debt that was significantly bigger, as a percentage of G.D.P., than debt today; but that debt was also owned by taxpayers, such as all the people who bought savings bonds. So the debt didn’t make postwar America poorer. In particular, the debt didn’t prevent the postwar generation from experiencing the biggest rise in incomes and living standards in our nation’s history.
But isn’t this time different? Not as much as you think.
It’s true that foreigners now hold large claims on the United States, including a fair amount of government debt. But every dollar’s worth of foreign claims on America is matched by 89 cents’ worth of U.S. claims on foreigners. And because foreigners tend to put their U.S. investments into safe, low-yield assets, America actually earns more from its assets abroad than it pays to foreign investors. If your image is of a nation that’s already deep in hock to the Chinese, you’ve been misinformed. Nor are we heading rapidly in that direction.
Now, the fact that federal debt isn’t at all like a mortgage on America’s future doesn’t mean that the debt is harmless. Taxes must be levied to pay the interest, and you don’t have to be a right-wing ideologue to concede that taxes impose some cost on the economy, if nothing else by causing a diversion of resources away from productive activities into tax avoidance and evasion. But these costs are a lot less dramatic than the analogy with an overindebted family might suggest.
And that’s why nations with stable, responsible governments — that is, governments that are willing to impose modestly higher taxes when the situation warrants it — have historically been able to live with much higher levels of debt than today’s conventional wisdom would lead you to believe. Britain, in particular, has had debt exceeding 100 percent of G.D.P. for 81 of the last 170 years. When Keynes was writing about the need to spend your way out of a depression, Britain was deeper in debt than any advanced nation today, with the exception of Japan.
- Paul Krugman, Nobel Prize Winner.
President Nixon in 1972 (not 1944) unilaterally removed the usd from the gold peg. Thus ushered in the era of fiat currencies. How much longer this Ponzi currency will last is a subject of much discussion. But fall it must, it is a matter of when?
ReplyDeleteWelcome to the blog SG Economist and BCA.
ReplyDelete
ReplyDeleteThe USA
is collapsing, rotting and
decaying.
Woes betide the Americunts.
More
ReplyDeleteAmericunts shall kill each other as days go. They cannot bear with each othee anymore due to survival challenges aa they have lost
their instinctive survival skill.