Thread: A WORD TO THE WISE

A WORD TO THE WISE

By Al Duncan
March 12, 2011
NewsWithViews.com

The U.S. dollar is the world's reserve currency. Banks around the world hold dollars in reserve against their loans. America is the only debtor in the world that can legally print U.S. dollars, and it is the only country in the world that doesn't have to purchase its imports in a foreign currency. Americans can freely purchase without worrying about buying another currency to pay for it, and Americans don't have to produce anything or export anything to acquire dollars needed to buy.

The U.S. is different from other countries because the dollar is the reserve currency, which is the currency that the rest of the world measures its currency against. This gives the U.S. an advantage because it can print money and then borrow it from itself—this has also caused the U.S. to be the largest debtor-nation in the history of the world.

As an example, Germans cannot buy oil from Saudi Arabia in German marks because oil is priced in dollars. Therefore they have to buy dollars first. To maintain the value of its currency Germans must produce as much as they consume, otherwise the value of Germany’s currency will fall, prices will rise and its standard of living will decline.

Because of the 2008 collapse the U.S. government absorbed trillions of dollars in bad debts. So much that even, if U.S. citizens were taxed 100 percent of their income, we still could not balance the Federal budget and we would still have to borrow money to maintain the status quo. So now, our government is repaying these debts by printing trillions of new dollars, which only worsens the problem and leads to hyperinflation.

China holds more U.S. dollars than any other country and China is exiting the dollar as fast as it can without crashing its own economy. Iran has moved all of its reserves out of U.S. dollars and last year Kuwait de-pegged its currency from the dollar. China and Russia have started trading in each other’s currencies, further diminishing the dollar's role in global trade. Moreover, the International Monetary Fund recommends a global currency called the “Bancorâ€

Originally Posted by AirborneSapper7

I recommend that people have basic food, water, and medical supplies to last for at least six months.

Skousen continues, “Here at the World Affairs Brief, we feel that people ought to spend their first dollars on a large stockpile of wheat, rice and beans. In bulk, this is still relatively cheap and you can get a ton of wheat

I'm not sure most people can do this. For starters, I don't think most people have the storage space. How would you store a ton of wheat for goodness sake? Six month's supply of water would be quite a storage challenge too I think.