August 19, 2013, by Ken Jorgustin
I believe the U.S. is in the midst of a major currency collapse, and a huge change in our normal way of life.
The following is a list of startling notes that I wrote, as well as statements credited to Stansberry Research while I watched a video related to their newsletter back in 2011.
The scary thing is… nothing has changed since I wrote this, and it has actually gotten much worse!
Please take the time to read this and comprehend what will happen when the dollar is no longer the world’s reserve currency…
One MSB reader recently commented…
“There are a number of financial counselors predicting the demise of the dollar as the world’s basis of currency exchange. It seems that a number of people are aware that China, Japan, Russia, France are making definite moves in that direction. Brazil and Argentina as well a Cuba are all in the same camp. When will Washington and Wall Street wake up?”
He is absolutely correct. It is well known to those who follow what is happening, that the dollar is on the way out of world reserve status. To answer his question… Washington and Wall Street will not wake up. They will ride this horse until it drops dead…
The government has been borrowing so much money, that soon, we will not be able to afford even the interest on the loans.
- Income tax receipts are roughly $900 billion a year.
Corporate taxes are roughly $200 billion annually.
Our current annual deficits are nearly $1.3 trillion, meaning we’re spending $900 billion + $200 billion + $1.3 trillion = $2.4 trillion.
Even if you doubled tax revenue, we would still be running a deficit!
Even if all U.S. citizens were taxed 100% of their income, it would still not be enough to balance the Federal budget! Tax increases will not even make the smallest dent on the true size of our debt.
There is not a single credible plan, by any political party, to merely end our annual deficits, never mind actually paying back our debts.
Here’s the kicker… the costs of maintaining our debts are about to skyrocket.
For years, the Federal Reserve has been keeping interest rates very low, to almost zero, and as a result, the interest rate at which the U.S. government borrows money from the Federal Reserve is an incredibly low level. This won’t last forever.
How much interest? Right now we’re paying about 15% of federal tax receipts (about $200 billion a year). If the government had to spend a ‘real’ market-based rate of interest, say 6%, it would cost $840 billion a year on interest (76% of tax receipts), just for what we owe right now, today.
We are trapped. The main-stream-media does not want you to know how precarious our government’s finances really are.