What the demise of the dollar means for you

by Anthony G. Martin
Columbia Conservative Examiner
October 13, 2009

…One of the primary reasons Americans enjoy an affluent way of life when compared to much of the rest of the world is the primacy of the dollar as a world currency. Oil, for example, is bought and sold using the dollar. Thus, dollars are being pumped into various economies around the world for one reason alone–it is in great demand. This helps the American consumer by keeping the value of our currency up, keeping inflation down, and keeping our goods and services affordable to the masses.

But what happens when the dollar is devalued? Or worse still, what happens when global entities, such as the oil barons, stop using the dollar as their currency?

Here is where you and I come into the picture.

We are going to see a major change in our way of life. What does this mean for you? Here it is in as simple of terms as I can possibly make it:

1. Inflation will skyrocket. If you are in the market for new clothing, expect the price for common, ordinary garments to quadruple overnight. Food, even the basic staples, will become so expensive that the largest percentage of what we spend out of our paychecks will be used just to stay alive. The poorest among us will have trouble merely surviving.

2. Paper money will be basically worthless. That means those dollars we use to purchase goods and services will have absolutely no real value any longer. The dollar, at that point, will have been so thoroughly devalued that it will be worth only the paper its printed on. Unless you have invested heavily in gold and other precious medals, you will be big trouble.

3. Gold and precious medals, which have intrinsic value of their own, will become vastly important. At present, the price of gold has skyrocketed to over $1000 per ounce. This means that a gold coin that at one time carried a value of $20 will now be worth over $1000. Those who have bought these gold coins and bricks as a hedge against inflation will be in a good position to weather the coming storm. Those who have not will be at the mercy of the coming economic storm where goods and services will quadruple in costs and where their paper money will be basically worthless.

4. Starvation will become common. Homelessness will overwhelm American society. Businesses will go under. Joblessness will sweep over the nation, setting us on a course to either match or outmatch the unemployment numbers of the Great Depression.

Barack Obama has hastened the demise of the dollar with his economic policy. The course he has charted through the Federal Reserve and the U.S. Treasury has sent the value of the dollar plummeting faster than a millstone dropped into a pond. The oil barons overseas, sensing that the dollar is quickly becoming irrelevant, are talking seriously about dropping the dollar as the standard currency on the world market…

The article continues here.

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