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I'm not saying this to scare anybody; but only a fool would ignore such obvious signs of Financial Distress. In fact, you can be absolutely certain that The Economic Sharks around the world are circling with glee; since they can smell blood in the water many years in advance! If you haven't already prepared for this outcome, then I would advise you to start moving very quickly. The dominoes of world history are set up over long expanses of time; but when they finally begin to fall, it only takes a couple days to drop.
For those who think that America can't [ or won't ever ] Default On Its Debts, I offer you some highly valuable and historical references from our past - researched, written, and provided by Larry Edelson at Uncommon Wisdom.
{ ***NOTE: Among other online information sources, I have long been a subscriber to ' The Uncommon Wisdom Daily Newsletter '. It is a highly accurate and excellent information resource, that costs absolutely nothing to subscribe to... and I would gladly recommend it to anyone with the common sense necessary to read it. }
The Continental Currency Default of 1779:
" Largely to fund the Revolutionary War, the Continental Congress of 1775 issued notes totaling 241 million Spanish milled dollars over roughly a two-year period. They were the first of the so-called “Continental dollars.” But since Congress had no power of taxation, it made each of the then-13 states responsible for paying them off, prorated based on their population. But the states couldn't pay them off. So in November 1779, Congress agreed to redeem the notes — with currency worth less than 1/38th the Continental's original value. "
The Default of 1790:
" In addition to its currency issuance, the Continental Congress borrowed money both domestically and abroad. The domestic debt totaled approximately $11 million Spanish dollars. The interest on this debt was paid primarily by money received from France and Holland as part of separate borrowings. When foreign lending dried up, Congress defaulted on its domestic debt starting on March 1, 1782 — by refusing to pay and, instead, accepting the notes for payments of taxes. By 1790, Congress repudiated these loans entirely. "
The Greenback Default of 1862:
" In August 1861, to fund the Civil War, Congress created a new currency which became known as the “greenback” due to the green color of its ink. The original greenbacks were $60 million in demand notes in denominations of $5, $10, and $20 — redeemable at any time at a rate of 0.048375 troy ounces of gold per dollar. But in January 1862, only five months later, the U.S. Treasury defaulted by refusing to redeem them on demand. Later, the Treasury issued “greenbacks as non-redeemable legal-tender.” They traded hands at discounts from the original greenbacks of as much as 40%. In effect, the currency was devalued by as much as 60% to finance the Civil War. "
The Liberty Bond Default:
" The financing of the United States government stepped up to an entirely new level as a result of the cost of World War I. So starting in 1917, Congress issued “Liberty Bonds.” The last bond issue, October 24, 1918, was a $7 billion, 20-year, 4.25% percent issue, payable in gold at a rate of $20.67 per troy ounce. By the time Franklin Roosevelt entered office in 1933, the interest payments alone were draining the Treasury of gold. In addition, the country's total debt had climbed another $18 billion to $22 billion. Yet, the Treasury had only $4.2 billion worth of gold.
Also, during the Depression, Americans were attempting to redeem their dollars for gold and then hoarding that gold like crazy. End result: President Roosevelt decided to default on the domestically-held debt by refusing to redeem dollars in gold and, instead, confiscating gold and then devaluing the dollar by 40%, which was essentially also a default on America's trade partners. "
Nixon Severed the Dollar's Link to Gold/Silver:
" On August 15, 1971, President Nixon abolished the dollar's link to gold. This was because there had been a run on the dollar in the late 1960s, since the United States was printing far more money than it could possibly back with gold. So, foreign holders of our dollars wanted their gold, period. Nixon told them to take a hike and permanently severed the dollar's convertibility into gold. In effect, it was a 100% devaluation of the dollar.
Since 1971, the value of gold has soared from $35 an ounce to today's roughly $1,600. Which is merely another way of saying that the U.S. dollar has lost an amazing 97.8% of its value since 1971. Put another way, in 1971, one U.S. dollar would have purchased you 1/35th of an ounce of gold. Today, one U.S. dollar purchases just 1/1,600th of an ounce of gold.
And put yet another way, for every $1 Uncle Sam borrowed in 1971 that may still be an outstanding debt — he can now pay that debt back now with currency worth 1/1,600th of its former value. Call it whatever you want, but as far as I'm concerned, that's an all-out default. In fact, any time the government devalues the purchasing power of its currency, it's a default, plain and simple."
Larry Edelson - like: Peter Schiff, Marc Faber, Jim Rogers, and so many others - is an Austrian Economist. As you are probably aware, by now, The Austrian Economists have been consistently correct in predicting Our Nation's Economic Woes - for more than three decades. So, what's the KEY to their continuing success? A proper understanding of: " Cause and Effect "! It's really that simple....
It has been very often said, " He who disregards His Own Past Human History is destined to repeat it... " and this one single statement is quite factually true. For some strange reason, however, every other human generation seems to think that they are ' The Lone Exception ' To This Rule. But, of course, they're not; and therein lies The Underlying Problem. While we [ in our own personal arrogance ] may consider ourselves to be quite special, we're not.
Yahweh [ God ] doesn't alter His Universal Laws - which govern this universe - simply because we're special... for it is written, " He [ Yahweh, The Mighty One ] is no respecter of persons " - and He isn't! Even more importantly, however, He [ The Mighty One ] truly detests those who are: Presumptuous, Arrogant, Haughty, and Proud - more than anyone else. Thus, He has no sympathy for those who are so Extremely Self-Centered.
The American Debt Default is looming, folks... as well as: Vastly Higher Interest Rates, A Greatly Reduced Safety Net, and A Hyperinflated Dollar! If you're not purchasing Silver and Gold, to protect your own assets, then you're making a terrible mistake... and I feel incredibly sad for you. The Real American Truth is that our politicians have taken us for a very exciting ride; but ultimately no one will truly enjoy it. While some will definitely make even more money, America's Economic Engine will never recover from this one....
Unlike Larry Edelson, however, I'm not so certain that The Democrats and Republicans will make any sort of compromise [ or transitional deal ] - before The Inevitable and Total Collapse! For, I find very little evidence upon which to base that unwarranted personal confidence... but rather, Isaiah Chapter 27 clearly says of Tyre [ aka, America ]:
" When its boughs [ The States ] are withered [ finally bankrupted ], they will be broken off [ or, separated from its National Confederacy ]; The women come [ the invading nations will arrive ] and set them on fire [ and utterly consume them ]. For it [ The Nation of Tyre ] is a people of no understanding [ who possess no comprehension ]; Therefore He [ Yahweh ] who made them will not have mercy upon them [ but, they shall suffer their own fate ], And He who formed them will show them no favor [ no special treatment ]. " - Isaiah 27:11.
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