I have a fear things will not go well for my grand children in the future. This country may be on a course the it cannot come back from. Lauren always tells me to be positive and people are working on it. My fears come from a combination of things, and I cannot list all of them in one post. So I will start with one then add another one in a day or so. First post on my fears: I am afraid the U. S. is on a course where we will collapse financially. Here is why: If you remember the U. S. (Obama) said China is trying to manipulate their money. This is true, but here is what they are trying to do. A bit of history. In the fifties the international standard for money was the British sterling silver. That means if you want to buy internationally you had to trade your money for sterling silver to purchase things like oil. Example, Germany had to trade their Marks for Sterling silver to buy from the US. Britain got in to trouble and it the sixties the US bailed them out and the dollar became the standard for international purchases. It still is today. If Germany wants to buy oil on the international market it trades its Marks for dollars. This is great for the U. S. it puts us in charge. Now for the problem. The U. S. owes over 17 trillion dollars is debt. How do we pay for this debt, of course in U. S. dollars. Where to we get the U. S. dollars? Obama prints over 80 billion dollars each year. We will not be able to pay down this debt because for every dollar we spend or give to other countries we borrow over 60% of that dollar. In a couple of years we will not be able to pay the interest on the debt with the 80 billion Obama prints. Congress is at fault in this matter as by the constitution they have the power to control international trade deals. Our government keeps spending and spending more than we take in. The president needs to create a budget that will stop the excessive borrowing and congress needs to approve it. Will not happen with this current administration and congress. The Chinese yuan, also known as Renminbi, is used throughout in mainland China, while in Hong Kong and Macau, Hong Kong dollar and pataca are respectively used. China wants to change the international standard for money to their currency. By keeping their currency low more countries will get more for their dollar. The U. S. owes China trillions and trillions of dollars right now. If China gets their way our dollar will be worth less than 50% of what it is now. So the U. S. will be paying double the amount of the debt. If you think the recession we went through in 2008 was tough this will be 400 times worse. The scary part China is slowly convincing the world to switch. Our Congress feels if we keep printing money at a high rate we can use this newly printed free money to pay the debt. As long as the U. S. dollar is the international standard this will work for awhile. If the U. S. dollar ceases to be the standard we are screwed. Remember the ads to purchase U. S. saving bonds? The government used this money to pay for things like the debt and to finance wars. Many countries through out the world bought the bonds as well as people in the U. S. The sale of Treasury bonds is not going well as we now are paying back the interest on the bonds as well as loan interest. What was the last year we exported more than we imported? It was 1975, Ever since that year we have been importing more and more goods and exporting less goods. We use to be an industrialized nation but now we are a consumer nation. Why do you think the other countries want to trade with us? It is because they can sell more of their goods and can get U. S. dollars in return. If the U. S. dollar is not the standard we will have to pay double for the same purchases as of today and may not get as much imports and we as Americans will have to change our way of life. Example: Autos, we export 1.7 trillion dollars of autos each year. Yet we import 2.6 trillion dollars of autos each year. Other countries can get what they want from other countries and do not NEED the us for most of the goods. We have a few things the would still trade for but they would pay less than they are paying now. Our financial future is bleak and this current president and congress does not believe we need to change. The U. S. is losing its financial position and respect in the world and if we do not change things will get worse. It appears to me this current Obama and this Administration wants us to be dependent on Middle East countries as he has all but stopped drilling for oil on federal lands. Saudi Arabia has stated that they are afraid the U. S. shale oil reserves will drastically lower the demand for their oil and their way of life will have to change. We can control our destiny but we gotta change things at the top. We keep borrowing money so they can send billions and billions of dollars to countries to in the Middle East and Africa including western Asia. There is more support for Muslim countries than support for our allies and American citizens. Oops wrong topic. Maybe next time for this one. I may be full of hot air and hopefully I am 100% wrong. I really would like to be wrong on this. Please someone tell me where this conclusion is not what will happen.
Posted on: Sun, 04 Aug 2013 16:05:00 +0000
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