The dollar continues to struggle against the yen and euro. Silver and gold are still gaining. It looks like the dollar is in serious trouble. The entire U.S. dollar is a debt system. The American people slave for a dollar that isn't back by anything by our sweat. The currency is not linked to a hard asset like gold or silver. It's value stems from confidence. Essentially, the dollar's worth comes from two places.
1) Petrol Value
(The only way a nation can purchase oil is with the Federal Reserve notes. This makes the dollar a necessarily if you want energy.)
2. American Labor
(The American people's willingness to work, pay taxes and allow the U.S. government to put them into debt.)
The problem is that investors (and other countries) have no incentive to support the dollar, because the United States fiscal and monetary policy is makes it clear that the U.S. has no intention of ever paying this money back. And when you have a debt system, you always have more debt than dollars, so the practical value of the currency is always in question. As long as investors believe that the government will pay back the debt, the system can function.
What's happening with the dollar is obvious. The federal government has borrowed trillions of dollars to bail out Wall Street criminals, local governments, fund the wars in Iraq and Afghanistan and expand it's power in sectors of the economy. Simply put, the government has written a cash that can't be cashed. It has put itself (and the American people) in a situation where we will not be able to pay our debts. In essence, the Federal Reserve system has put the American people into slavery.
What's happening with the Economy
1. The Stimulus Package failed.
(Not only did it fail to create jobs in an efficient manner, but the government was caught lying about the numbers.)
2. Unemployment Remains High
(Although, there has been some slight signs of life in the private sector, the growth in jobs was not enough to keep the U.S. up with population. So in actuality, we're still losing jobs. The biggest change is that now more unemployed people have given up looking for work.)
3. The Middle Class is Shrinking
Now, 1 out of 7 Americans are living in poverty. Over 41 million Americans are receiving food stamps.
4. The Dollar is Decling
(The U.S. dollar dipped to 81.07 against the yen. This is a fresh 15 year low. The stock market is rising while the dollar is dropping against almost everything.)
5. Local Governments are falling apart.
(We lost over 50,000 teachers last month. And that was only a small part of the exodus in the public sector.)
So what does all of this mean?
It means you better be taking steps to protect yourself, because things are about to get rough. i highly recommend you watch my video "The Prepper's Emergency List" to get an idea on how to get started.
