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Ron Paul Warns of Dollar Collapse 100% On 19 Feb 2016 .

Sunday, December 20, 2015 9:45
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DOLLAR COLLAPSE 

Ron Paul Warns of Dollar Collapse 100% On 19 Feb 2016.

By Mike Patton

Over the past few years, many experts have been warning of a crisis heading our way. More specifically, the concerns have centered on the inevitable collapse of the U.S. dollar. One of these individuals is former Congressman Ron Paul, who has stated that he believes the U.S. financial system is on the road to disaster. In this article, I’ll share some of his views and discuss what could happen if such a crisis materialized.

Financial advice and preparedness

Currency Crisis

According to Congressman Paul, a U.S. currency crisis is inevitable. At one point in the 1980s, while riding on Marine One with President Reagan, the President said, “No great nation that has abandoned the gold standard has ever remained a great nation.” A few decades ago, former Fed Chairman, Alan Greenspan stated, “In the absence of the gold standard there is no way to protect savings from confiscation through inflation.” Without a gold standard, there is nothing to limit government spending. In short, as long as the government is able to overspend, the national debt will be the norm rather than the exception.

RELATED : The Economic System Will Most Likely Crash By 2016 And Everyone Will Feel The Pain: Jeff Berwick

Since the gold standard was abandoned, what is backing our currency? Confidence! Without a hard asset backing up the dollar, it is supported only by the “full faith and credit of the federal government.” If the world lost confidence in the greenback, its value would plummet and life as we know it would be severely and forever altered. How will we know when the next crisis is about to emerge?

 

The first sign of a currency crisis, according to Paul, will be a precipitous decline in the value of the dollar. A collapse in our currency would result in a spike in inflation. It would also be accompanied by an increase in U.S. interest rates. Paul’s prediction, although rather dire, is for the collapse of the entire U.S. financial system. If this occurs, the systemic risk would be massive. If the U.S. financial system actually did collapse, it would take the entire global financial system with it. Why? Because there is over $18 trillion in U.S. debt outstanding, with China and Japan being the largest holders. A U.S. collapse would devastate the entire globe. Let’s turn our attention to the national debt, an issue which weighs heavily on the minds of millions of Americans.

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U.S. National Debt

When the government spends more than it collects, the result is additional debt. From the signing of the Declaration of Independence in 1776 until 2008, the U.S. accumulated slightly over $10 trillion in federal debt. In the past seven years, the debt has nearly doubled to more than $18 trillion. By the year 2019, it is projected to exceed $20.3 trillion. When interest rates rise, the impact will be felt by the federal government as well as everyday Americans. First, it will increase the government’s cost of borrowing, which will cause the debt to rise even faster. It’s entirely possible that even a modest rise in interest rates could cause the debt to spiral out of control. This is because Washington is heavily dependent on borrowing to operate. Next, it will be much more difficult to expand or even maintain the welfare state. This fact alone will lead to mass riots as individuals who are dependent on a government check will take to the streets in protest. Also, the U.S. would have a more difficult time funding its presence (i.e. military bases) around the world. This would lead to a less stable socio-political environment and an uptick in radical behavior. Plus, a shortage in government revenue could result in a rather large tax increase and the eventual demise of the middle class. Finally, and as we’ve already seen, the federal government may decide to target 401ks and IRAs as a source of additional revenue. This could take the form of a tax or fee of some sort. Mr. Paul also mentioned the possibility of a tax on regular savings and other assets. If the government finds itself in a tight situation, as we’ve witnessed in the recent past, the potential intrusion could be severe.

Social Unrest

This discussion wouldn’t be complete without mentioning social unrest. As we’ve already seen, the match is lit and it wouldn’t take much for anarchy to manifest. In essence, there appears to be a significant amount of pent-up frustration among the electorate. For example, who expected the reaction in Ferguson, New York, or Baltimore? And this may only be the tip of the iceberg. A temporary government shutdown is also a distinct possibility. To this author, public protests seem to be on the rise and the bar of what’s reasonable appears to be quite low. Hence, I suspect this is only the beginning of more civil unrest in America.

 

The Clock is Ticking

Is the problem too advanced to solve? Can a crisis be avoided? These are valid questions. I believe we can still fix this, but as Paul stated, “Real monetary reform will only come after a major currency crisis hits.” Why? Is he just being pessimistic? No, I don’t believe so. What he is saying is that politics will get in the way and prevent a solution until it reaches a crisis point. This is a view I have held for quite a while. Until Congress is forced to find a solution, it’ll be business as usual. The former Congressman also said he believes the majority of those in government do not fully understand economics.

RELATED : Gerald Celente-2016 Predictions, Gold, Silver War and Collapse

Is the U.S. Losing its Stature?

In the post WWII era, the U.S. dollar has been the global reserve currency. Prior to that, the British Pound filled this role. Recently, China has increased its trading with Germany, India, and others, excluding the dollar as the reserve currency. It seems the world is slowly transitioning away from the dollar. If this continues, the U.S. could lose its position as the world’s reserve currency. This would have numerous ramifications. A discussion on that is beyond the scope of this article. Mr. Paul also stated that 10 countries have already signed a document to begin phasing out the dollar as the basis of trade. Even the IMF has proposed a new world reserve currency system. The days of the U.S. dollar as the world’s reserve currency may well be numbered.

Some argue that the U.S. economy is on the mends and the stock market is near record highs. Therefore, things can’t be all that bad. While there is truth in this, according to Paul, stocks have risen due to Fed policy and political leaders. He also stated that printing money has never solved this type of problem….ever! He cited Germany, Russia, Argentina, Brazil, Chile, Japan, China, Ukraine, Italy, Ireland, Portugal, and Spain as examples of countries that had similar problems to the U.S. and yet none of them was able to use the printing press to escape their problem.

Will the U.S. follow the path suggested by former Congressman, Ron Paul? 

 

An Exclusive You Have To See: The Last Frontier of Free Press Is Here! No More Censorship, Unlike YouTube and Others!

 

 By. MyDailyInformer

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Total 24 comments
  • NWO for Dummies.

    Nothing in the article to back up the 19th Feb. collapse claim in the title….nothing.

  • beforeitsnotnews

    BS

  • Microbe

    Why do people have to use misleading titles? It must be some kind of hormone thing or something, I don’t know. What I do know is these types of postings are click baiting users to watch videos, or read articles. There is no date mentioned for a dollar collapse. Ron Paul would not predict exact dates.

    • NWO for Dummies.

      Exactly!

  • Jdelec

    The dollar is not collapsing and neither is the world. There is just to much to do and not enough skilled people to do it. What has to happen is that people need to get their heads out of their rectums and start learning how to participate in the needs of the world. The problem is not the Illuminati or the power structure the problem is all the lazy people who want other people to serve them.

  • Anonymous

    YOU 5 PEOPLE HAVE NO FRIGGING CLUE WHATSOEVER…

    • NWO for Dummies.

      ditto!

      • Theoferrum

        This is where the article originated and it wasn’t February 19 but January 19 and it wasn’t Ron Paul :

        US Dollar Collapsing 100% In 19 Jan 2016

        http://www.youtube.com/watch?v=XA33qziHTGw

        • Sun Rabbit

          Yeah, well it’s exactly 15:13 on 19 January 2016 here in Europe City and I Haven’t heard anything about any US Dollar collapse. I’ll bet you any money (in US Dollars, nonetheless) that come 19 February 2016 the situation will be exactly the same.

    • Theoferrum

      Oh, they have a clue, genius, or they wouldn’t have clicked on the thread and they are asking an important question which directly pertains to the title of the thread. Why the February date? Why not, lets say, the end of the fiscal year in October?

      You drop dates like that you best have the info you are bragging about otherwise you’re just a attention shill…

  • You Have 7 Weeks

    I am a reptilian and your paying for my food stamps anyway, so put up or shut up :mrgreen:

  • my2pesos

    The Dollarization ~ Halt Idolization On
    .
    .
    Dollar Collapse ~ Doll Ra Col. Lapse

    • my2pesos

      Dollar Col ~ Dr. Loo Call
      .
      .
      Dollar ‘n’ Col ~ Lord on Call

      • my2pesos

        Gold’s ‘n’ Dollar ~ Logs Landlord
        .
        .
        Gold Gene ~ Og Legend
        .
        Bashon King ~ Ban Shaking
        .
        Shaking ~ Ha’s King

        • my2pesos

          The Marbles ~ Ha! Trembles

      • Sun Rabbit

        Dollar Collapse ~ Scaled Oral Poll
        Dollar Collapse ~ Do a Caller’s Poll
        Dollar Collapse ~ Locall Dolls Raped
        Dollar Collapse ~ Lose All Old Crap

  • Freedom

    The dollar SHOULD have collapsed long ago . to simplify Americas debt problem if America was a person and that person made a 1$ Peryear at the end of the year they would owe 5$. who knows when this fake economy will crash because the only thing holding it together is greed.

  • Pa226p

    YAWN

  • Klemens

    The 99-year interest slavery of FED (jewish money) on the Central Bank of Russia will be finished in January 2016!

    Did someone find something about this fact? Is this truth?

  • jdpent01

    jdp…The US should go back on the gold system, it should start off small and grow over 5 years, should buy 100 tons of gold and increase every year by 1200 pct. 1000, 1200, 1400, 1600,tons @1500/ton 320 ton *1500 = 4.8 Trillion. Yes gold goes up n down so buy it at lower prices.this would help the dollar and help trim our 18 trillion deficit.
    1. stop all spending but what is most necessary/critical we need to clean our house before we can help others, so pull all moneys designated for helping foreign countries. JUST AS AMERICA IS NOT THE POLICEMAN OF THE WORLD NEITHER ARE WE THE WORLDS RESOURCES TO TAKE. MANY OTHER COUNTRIES HAVE RESOURCES TOO.

  • Didianna

    I’m afraid you will have hundreds of articles about dollar collapse etc before it happens althouh how soon, as even just today there has been so so many doomsday articles. I don’t say it might not happen but…hoping people would concentrate on prepping and something more valuable things. Reading doomsday titles might not be the best way to spend time. Anyhow hope the best…

  • VirusGuard

    Looks like the OP is trying to push gold, maybe trying to off load some risk and i see nothing about the 19th so you need to question if anything said can be trusted.

    Silver might be at my “look to buy” trigger of $12oz on the 19th of Feb so hold off any panic buying but if you want to talk about selling then did Ron Paul sell out on his “Audit the Fed” because i am still waiting.

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