The Dollar's Inevitable Demise

A very interesting article in now found in "The American Thinker".

If you are interested in finance, or know anyone who is in the world of finance, it is pretty much accepted that the dollar is rapidly headed for a "collapse". My interest in this relates to the outcome of such a scenario. It has been my belief (and many others as well), that the complete collapse of the dollar could have one of two outcomes:

- It could lead to a new "dollar", based on the EURO model and based on a North American Union (NAU) being formed. If we go this route, I would expect to begin hearing from government leaders etc., that the only way out of the financial crisis formed by a dollar collapse would be the formation of a NAU and an "Amero", which has already received much discussion.

- It could bypass any talk of an Amero (depending on the circumstances existing at the time of the collapse) and a world-currency could be formed.

This article confirms much of the fear that many financial experts express regarding the fate of the dollar:

The Dollar's Inevitable Demise"

Consider these figures. The current size of the American economy is roughly $14 trillion. As of this writing, the federal government's total public debt stands at nearly $13 trillion.

In its first midsession review, the White House Office of Management and Budget estimated that at the end of 2010, the national debt will breach the $14-trillion mark. This means that America's sovereign debt will be soon equal to the annual output of our economy. In other words, our national debt will shortly reach 100 percent of GDP. History and experience show that most governments that assume such levels of debt are ultimately not able to contain them. In most cases, this kind of situation eventually leads to the disintegration of the country's monetary regime and the collapse of its currency.

There is every reason to believe that the deficit will grow even faster in the years to come, as the federal government further increases its involvement in health care.

This, however, is not the worst of it, because the national debt represents only a relatively small portion of our government's total financial obligations. The far greater bulk is made up of long-term liabilities inherent in entitlement programs. According to the latest estimates by the Dallas Federal Reserve, the combined liabilities of Medicare, Social Security, and Medicaid amount to an astounding $104 trillion.

Given the dollar's status as the world's reserve currency, default would be a cataclysmic global event that would result in the disintegration of the world's financial system. Needless to say, this kind of calamity would bring about the dollar's sudden collapse with ruinous consequences for the American people.

Whichever of the two possible options our government chooses to pursue, the final result will be currency destruction.

Outright default would result in the dollar's immediate collapse, while inflation would produce a more gradual decline, at least initially. Needless to say, given the immense weight of the government' financial burden, the inflationary route will ultimately wipe out most of the greenback's worth. Either way, we will end up with a greatly debased, if not completely worthless, currency and all the painful repercussions inherent in that downfall.

To put it bluntly, the dollar's days are numbered and its demise is inevitable.

But unlike, say, Greece, the American dollar is what makes the world economy spin. Almost everything internationally is still ultimately tied to the dollar. Once the dollar collapses, there will have to be a "global solution". The collapse of the dollar seems to be an excellent "crisis" for the globalists to operate, and to finalize their plans for a world financial system and a world currency (both of which would dramatically help precipitate the movement towards a world government).

Things sure are getting "interesting" aren't they? At least for a prophecy watcher.

The dollar collapse is just a matter of time. Money can be printed for a brief period, and then inflation will become an even bigger problem. Printing more and more money would just serve to delay the inevitable.

But what is more interesting - is what happens after the collapse of the dollar.

As they say, "never let a crisis go to waste".

The collapse of the dollar would simply represent yet another significant step towards the Tribulation.