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 The Collapse of the US Dollar; Is Pennsylvania Ready

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TomL
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Join date : 2010-03-25
Age : 61
Location : Lebanon, PA

20140816
PostThe Collapse of the US Dollar; Is Pennsylvania Ready

THE COLLAPSE OF THE U.S. DOLLAR
Is Pennsylvania Ready
by Thomas D. Lineaweaver

PREFACE

In the past several months I have written about the collapse of the U.S. Dollar.  I am combining those articles here.

THE VALUE OF THE DOLLAR


Please look at the chart at this link... http://www.infoplease.com/ipa/A0001519.html

The base year is 1913.  A dollar was a dollar.  As of 2012, it took $23.27 to purchase what a dollar bought in 1913.   Something tells me that our economy has been mismanaged.  

According to that chart, the dollar has been on a steady decline since 1935.   Is it a coincidence that Franklin Delano Roosevelt was President from 1933 to 1945, and that upon his death in April of 1945, his Vice President, Harry S. Truman became President, and he was President till 1953.   My question is, is it a coincidence that from the beginning of the New Deal, till now, the dollar has been on a steady decline?    I thought the New Deal was supposed to help our economy.  Didn't do too well, did it?

From 1975, the rate of the decline of the dollar doubled.  In 1975 it took $5.43 to purchase what the dollar did in 1913.  By 1985  it was $10.87.  In 1977, James Earl Carter became our President.  And we know his Administration was not good for economy.  And since then the decline of the value of the dollar has continued.  

From 1913 to 1985, which is 72 years, what it took a dollar to buy in 1913, it took $10.87 in 1985.  That's a difference of $9.87.  Today it's $23.27.  The difference since 1985 till 2012 is $12.40, in just 27 years.  What that tells me is that the people who have run our economy since 1985 has not done a good job.  

Imagine from this point that it will take $50 to buy what a dollar bought in 1913.  That's the direction we are going if we don't do something.  And based on economic articles I have read, and economists I have listened to, the law that will go into affect on July 1st of this year, the devaluing of the dollar will be accelerated.

Let's look at it another way.  When it took $2 to buy what $1 bought in 1913, the value of the dollar was in half, or 50 cents.  Today the value of the dollar is about 4.3 cents.  When we reach that $50 threshold, the dollar will be worth 2 cents.  And, if we keep going the way we are, the dollar will one day be worth less than a penny.  That means it could cost close to $100 to purchase what a dollar bought in 1913.   And from everything I see, this is going to happen very quickly.  

In about 3-5 years the value of the dollar will reach 2 cents.  In 6-10 years the value of the dollar will reach 1 cent.  And will continue to devalue till it is worth nothing.  That is if we keep going the way we are going now.  

My question is, what is Pennsylvania going to do to protect it's people from this?   So far, I haven't found any politicians in Harrisburg that seem to care.  It's obvious our current Governor doesn't care.  And there is no indication that I have heard that Tom Wolfe cares either.  But, ignoring this problem is not going to make it go away.  We must do something to shelter the people of Pennsylvania from the collapse of the US Dollar.  The question is, what can we do?  The answer is, we need an alternative currency.  Or we could declare our independence from the United States.  But, that might be practical or doable.  So the way to go is to create an alternative currency.

How do we do that?  The US Constitution prohibits the States from making their own money.  But, the Constitution does not prohibit private entities from making their own money.  For example, Wal-Mart could make their own money, then you can exchange your dollars for Wal-Mart money then do your shopping.  Although that's not very practical.  But, what if Pennsylvania had a private bank that made money.  We could set it up similar to the Federal Reserve System.  We could establish the Commonwealth Reserve Bank.  But, we would need to establish controls so they don't do the things the Federal Reserve has done.  Also, the State should buy up all the silver we can, and retain ownership.  The purpose of the silver would to be to back the currency created by the Commonwealth Reserve Bank.  

If we did this I would not want to call our one unit a dollar.  I was thinking we could call it the Keystone.  And there will be a time of transition when the US Dollar and the Keystone will be in circulation.  The Keystone will be worth a certain amount of silver.  So, it will be the better currency.  

Who in Harrisburg is going to champion this?  It won't be Tom Corbett or Tom Wolfe, or we should have heard something by now.    Someone should ask those two Toms what their plans are should the US Dollar collapses.

DOLLAR'S REIGN NEARLY OVER

One more article for you to consider:
http://online.wsj.com/news/articles/SB10001424052748703313304576132170181013248

This was an article that was updated on March 2, 2011.   Already then the world was beginning to flee the US Dollar as reserve currency.  That was before FATCA.  


As I have quoted in another article...

Quote :
Writing in the New American, Alex Newman argued the more dire side of FATCA, speculating that it could potentially result in a large-scale movement by foreign investors to pull out of U.S. assets and markets:

Quote :
One of the underreported but major risks to the U.S. economy stemming from FATCA is the potential for wide-scale disinvestment from the United States by foreign institutions seeking to avoid the IRS, penalties, and huge compliance costs. In fact, countless analysts and financial giants have said the 30-percent FATCA "withholding tax' represents a powerful incentive to get out of U.S. markets entirely. The implications for the stock market, bonds, the dollar, and more could be monumental.

Estimates suggest there is currently more than $21 trillion of foreign capital invested in American assets and markets, with about $10 trillion of that in the stock market. However, that could change as FATCA enforcement begins later this year — possibly quickly. The Japanese Bankers Association, the European Banking Federation, the Institute of International Bankers, and others, for example, have all openly warned in recent years that some of their members could decide to ditch U.S. assets and markets in response to FATCA.

Luxembourg Bankers' Association CEO Jean-Jacques Rommes, speaking to Democrats Abroad, warned that the best way for banks to lower compliance risks was simply to reduce the amount of American assets they hold. "In other words, divest from the US market, in general," he explained, as summarized by the Luxembourg Bankers' Association.

Multiple reports have suggested that small and medium-sized firms, unable to bear the compliance costs or the crippling withholding taxes, would be especially likely to ditch American markets. "On the institutional side, the cost of becoming FATCA compliant may be prohibitive for some foreign institutions, and therefore they will divest from their American holdings," explained Douglas Goldstein, author of The Expatriate's Guide to Handling Money and Taxes and director of Profile Investment Services Ltd. Indeed, compliance costs borne by the private sector are expected to dwarf the amount of additional U.S. tax revenue — perhaps by hundreds of times.

Goldstein explained: "Faced with the choice between paying to implement the new rules or divesting from U.S.-based assets, smaller foreign banks that can't afford to shoulder these costs may choose the latter," Goldstein added. "After all, there are plenty of promising new markets in which to invest."

Needless to say, if foreign institutions started fleeing U.S. markets, the economic damage would be massive — potentially apocalyptic, especially considering U.S. trade deficits and America’s outsized reliance on foreign investment and outside credit just to function. The full implementation of FATCA may, as some critics have maintained, ultimately prove more harmful to U.S. business interests and U.S. citizens living and working abroad than its benefits will merit. But no credible source that isn't an investment firm trying to scare potential customers into forking over money for a newsletter subscription is seriously maintaining that a law passed four years ago will, within the next few months, collapse the entire U.S. economic system, destroy the American way of life, and lead to the imposition of martial law.
 Read more here: http://www.snopes.com/politics/conspiracy/hr2847.asp#bMOmBw5yjy1wy4T7.99

So, what do we have?  We have the world moving away from the US Dollar as reserve currency.  Then here comes FATCA, giving foreign investors the incentive to flee US markets.  We will then see the US Stock Market plummet.  US investors that are wise to this will also want to get out before they lose too much money.  So, potentially we could see a huge and quick run on the Stock Market.  In other words a crash.  And the effects of this crash will be worse than the last one.  Why?  Because back then the dollar was still worth something because it was backed by gold and silver, and because of that, the economy was able to be rebuilt.  That's not the case now.  The dollar will only be worth the paper it's printed on.  The dollar is so connected to the market that when the market plummets so will the dollar.

And here is the link to the FATCA timelines:
http://www.irs.gov/Businesses/Corporations/Summary-of-FATCA-Timelines

We are witnessing the last days of the US Dollar if something is not done.

IS PENNSYLVANIA READY FOR THE COLLAPSE OF THE US DOLLAR

On July 1st, a portion of a Federal Law that was enacted in March 2010 went into effect that, unless something is done, will usher in the collapse of the US Dollar.  

The Law is known as HR 2847.  It is called, "Hiring Incentives to Restore Employment Act" (or HIRE).   The portion of that Act that went into effect on July 1st is called, "Foreign Account Tax Compliance Act" (known as FACTA).  

There are several things that are converging together that is and will cause the collapse of the US Dollar.  1st, the dollar has been continually devaluing for a long time to the point is is worth 4 cents if 1913 is the based year.  What that means is it takes about $25 to buy what $1 bought in 1913.    2nd, the Federal Reserve did what is called "Quantitative Easing."  They did this twice.   What they did is flood the markets with 2 trillion dollars each time of paper money and propped  up the markets with it.  There was talk of doing it a third time, but I am unaware if they did.  3rd, the US Dollar has been the world's reserve currency.  That's beginning to change.  The reckless spending and bad economic policies have so damaged the US Dollar that the rest of the world is beginning to abandon it as the reserve currency.  Do you know what will happen when no one no longer wants the US Dollar?  It will devalue further than what it already has.  It's rule of supply and demand.  When the supply of a commodity is much higher than the demand, that commodity is devalued.   These things have already place.  China, Russia and South Korea are working on a currency partnership where they will abandon the US Dollar as reserve currency.  Some countries are clamoring for and international currency to replace the US Dollar as reserve currency.  So, the world is already making plans to abandon the US Dollar.

Now here comes FATCA.   This Law will go after people that have off shore accounts and tax them at 30%.  They will also inform other countries of the about what foreign investors are doing with their money.   What this is causing is that those people with foreign accounts are exchanging their US Dollars for foreign currency, or investing in something else of value in foreign markets.  In short they are abandoning the US Dollar.  And, because of reciprocal reporting, foreign investors will pull out of the US Market.  What will happen when foreign investors pull out of US markets?  Or what will happen even if America's investors flee US markets?  The result will be a crash in the market which will result in a monetary crisis that will make the great depression seem like a Sunday School picnic in comparison.  Adding to that the world is on the verge of abandoning the US Dollar as the world's reserve currency.  What will that do to the value of the dollar and our economy?  It will be destroyed.  It's a s simple as that.  

You may wonder, what that have to do with Pennsylvania.  Pennsylvania is part of the US economy.  If the American economy is destroyed, so will the Pennsylvania economy.  I have several articles about this problem, and proposals for what Pennsylvania can do to protect the people of Pennsylvania.  You can see them here: http://thesqueekywheel.freeforums.org/politics-f5.html

RON PAUL SPEAKS

Even Ron Paul is talking about the collapse of the US Dollar.....
http://ronpaulinstitute.org/archives/featured-articles/2014/august/10/us-sanctions-on-russia-may-sink-the-dollar.aspx

CONCLUSION

My friends, Pennsylvania is not ready for this.  So far, I can't find any who will listen to me.  Most people I talk to don't believe me.  Why?  One night, about a month ago, I was told it's because no one else is talking about this but me.   If you don't believe me, just Google "collapse of the dollar," and you will see, the information is out there.

Now, there are things the Pennsylvania Government can do to protect the people and businesses of Pennsylvania from the collapse of the dollar.  I don't believe the current Governor Tom will do anything.  Nor will Democrat candidate Tom do anything.  Therefore it is imperative you, and everyone in Pennsylvania you are connected to, to write in the right Tom.

Check out my Facebook group here:
https://www.facebook.com/groups/1433726336896316/
If you don't have Facebook, please go here:
http://sonofdavid.myfreeforum.org/forum207.php

_________________
study - Do your best to present yourself to God as an approved worker who has nothing to be ashamed of, handling the word of truth with precision. - 2 Timothy 2.15; ISV, isv.com
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