Robert Kiyosaki: Biggest Stock Market Crash in History Coming-Are You Prepared?

Robert Kiyosaki

Robert Kiyosaki: Biggest Stock Market Crash in History Coming-Are You Prepared?

Are you familiar with Robert Kiyosaki? He is best known for the “Rich Dad, Poor Dad” series of books.  Over 26 million books authored by Kiyosaki have been sold and he is recognized as a financial expert by millions of people across the globe.  Well, guess what?  Even Robert Kiyosaki is warning that an economic collapse is coming.  In fact, Kiyosaki and his team of financial experts are encouraging Americans to stock up on food, guns and precious metals.  This is yet another sign of just how close we are to the total collapse of the U.S. Economy.  Kiyosaki, who once co-authored a book with Donald Trump entitled “Why We Want You To Be Rich” is now a full-fledged prepper.  As even more prominent Americans start warning that an “economic collapse” is coming do you think that the American people will finally wake up and start paying attention?

[Read more…]

46 million Americans go to food banks, and long lines for dwindling food supplies begin at 6:30 AM

food

46 million Americans go to food banks, and long lines for dwindling food supplies begin at 6:30 AM

Those that run food banks all over America say that demand for their services just continues to explode.  It always amazes me that there are still people out there that insist that an “economic collapse” is not happening.  From their air-conditioned homes in their cushy suburban neighborhoods they mock the idea that the U.S. economy is crumbling.  But if they would just go down and visit the local food banks in their areas, they would see how much people are hurting.  According to Feeding America spokesman Ross Fraser, 46 million Americans got food from a food bank at least one time during 2014.  Because the demand has become so overwhelming, some food banks are cutting back on the number of days they operate and the amount of food that is given to each family.  As you will see below, many impoverished Americans are lining up at food banks as early as 6:30 in the morning just so that they can be sure to get something before the food runs out.  And yet there are still many people out there that have the audacity to say that everything is just fine in America.  Shame on them for ignoring the pain of millions upon millions of their fellow citizens.

[Read more…]

Economic Collapse In Process: This Process Will Have Some Surprises, It Won’t Be A Total Fast Shut Down, Things Will Look A Little Like The 2008 Crisis, With Only Half Of People Paying Attention

ID_KNOWL_CODE_AP_001When Hyperinflation begins…that’s when most folks will start to pay attention. I think we’ll be seeing huge chaotic signals in the markets by the end of 2014 (Q3 to Q4) but we might not see the actual hyperinflation begin until next year…

Is the Global Economy Slowly Falling Apart?

It’s conventional wisdom that the U.S. economy is steadily recovering from the recession, even if progress is slow and disappointing. But there’s also a widespread sense that long-term economic prospects are deteriorating all around the world. Young people can’t find jobs. Budgets keep being cut in both the public and the private sectors. And the projected increase in debt over the next decade figures to be a huge burden for the most highly developed economies. Political systems seem unable to cope with problems that ought to be fairly easy to solve, or at least contain. As the recent crisis in Cyprus demonstrates, a minor dislocation can become a threat to the entire global financial system overnight.

uscrises

The U.S. is deeply troubled too. Deficits remain enormous, and the checks and balances of the political system have turned into a logjam.  When the latest bubble pops, there will be nothing to stop the collapse.”

This view may be extreme, but there’s hard evidence to substantiate the idea that the global economy is becoming more rickety. Although the developed world today is considerably richer overall than it was when Stockman worked in the Reagan Administration, creditworthiness has been steadily declining. The global supply of AAA-rated government bonds has shrunk by more than 60% since the financial crisis began. And while dozens of big U.S. corporations had top bond ratings 30 years ago, today that group has dwindled to four: Automatic Data Processing, Exxon Mobil, Johnson & Johnson and Microsoft….

  • Economic Reality Finally Cracks Market Fervor
    As evidence mounts that a midyear slowdown is taking place in the world economy, the next few days will offer a clearer glimpse of how that will impinge on policymaking and buoyant financial markets.

Systemic crisis 2014: with record stock exchange highs, the planet’s imminent plunge into recession

Despite a feeling of relative calm given by both the media and the American and Japanese financial markets going from record to record, the world economy is slowing down badly and a widespread recession is looming. The various players are fully aware of it and, in the face of the challenges of an imminent collapse, countries or regions are putting various strategies in place to try and limit the consequences. Whilst some seem dictated by desperation or last chance solutions, others on the contrary bear witness to a real adaptation to the world’s current changes. And it’s no surprise that, in the first category, we find the “powers of the world before” which no longer have any real options.

Layout of the full article :
1. World recession in sight
2. The banks’ doubtful business
3. Tax haven all hell
4. Neo-protectionism between regional blocs
5. Emerging nations’ strategy in gold
6. The Fed’s last bullets
7. Euroland : national unity governments and the ECB to the rescue
8. High risk strategies

40 Statistics About The Fall Of The U.S. Economy That Are Almost Too Crazy To Believe

If you know someone that actually believes that the U.S. economy is in good shape, just show them the statistics in this article.

The following are 40 statistics about the fall of the U.S. economy that are almost too crazy to believe…

#1 Back in 1980, the U.S.national debt was less than one trillion dollars.  Today, it is rapidly approaching 17 trillion dollars…

National Debt

#2 During Obama’s first term, the federal government accumulated more debt than it did under the first 42 U.S presidents combined.

#3 The U.S. national debt is now more than 23 times larger than it was when Jimmy Carter became president.

#4 If you started paying off just the new debt that the U.S. has accumulated during the Obama administration at the rate of one dollar per second, it would take more than 184,000 years to pay it off.

#5 The federal government is stealing more than 100 million dollars from our children and our grandchildren every single hour of every single day.

#6 Back in 1970, the total amount of debt in the United States (government debt + business debt + consumer debt, etc.) was less than 2 trillion dollars.  Today it is over 56 trillion dollars…

Us1

Total Debt

#7 According to the World Bank, U.S. GDP accounted for 31.8 percentof all global economic activity in 2001.  That number dropped to 21.6 percent in 2011.

#8 The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.

#9 According to The Economist, the United States was the best place in the world to be born into back in 1988.  Today, the United States is only tied for 16th place.

#10 Incredibly, more than 56,000 manufacturing facilities in the United States have been permanently shut down since 2001.

#11 There are less Americans working in manufacturing today than there was in 1950 even though the population of the country has more than doubled since then.

#12 According to the New York Times, there are now approximately 70,000 abandoned buildings in Detroit.

#13 When NAFTA was pushed through Congress in 1993, the United States had a trade surplus with Mexico of 1.6 billion dollars.  By 2010, we had a trade deficit with Mexico of 61.6 billion dollars.

#14 Back in 1985, our trade deficit with China was approximately 6million dollars (million with a little “m”) for the entire year.  In 2012, our trade deficit with China was 315 billion dollars.  That was the largest trade deficit that one nation has had with another nation in the history of the world.

#15 Overall, the United States has run a trade deficit of more than 8 trillion dollars with the rest of the world since 1975.

#16 According to the Economic Policy Institute, the United States is losing half a million jobs to China every single year.

#17 Back in 1950, more than 80 percent of all men in the United States had jobs.  Today, less than 65 percent of all men in the United States have jobs.

Check out this incredible way of becoming food independent on Backyard Liberty, and find out more about off-grid survival on Conquering the Coming Collapse.

#18 At this point, an astounding 53 percent of all American workers make less than $30,000 a year.

#19 Small business is rapidly dying in America.  At this point, only about 7 percent of all non-farm workers in the United States are self-employed.  That is an all-time record low.

#20 Back in 1983, the bottom 95 percent of all income earners in the United States had 62 cents of debt for every dollar that they earned.  By 2007, that figure had soared to $1.48.

Japan QE Suprise!  GLOBAL DEPRESSION “Trigger Mechanism”: Collapse of Japanese Govt Bonds – 10-Year Now at 1%!!! Japanese BOND Market Closed – Nikkei DOWN over 1000 POINTS!!! Start of Reflation Bubble Bust?!?!

  • Japanese Stocks Extend Overnight Plunge – Down Over 14% From Highs

uscrises2

Christine Hughes, President and Chief Investment Strategist, discusses details of Japan’s radical monetary policy.

the key part of the video, for ease of viewing:

 

No easy way out of easy money for the U.S. or Japan: Dallara

Perhaps worries about the Fed’s quantitative-easing exit, which have triggered sharp losses for Japan stocks andbroke a four-week winning streak for Wall Street, aren’t exactly being overplayed.

“We’re expecting too much of the Federal Reserve, and Bank of Japan, and I’m growing increasingly concerned that we’re not going to find an easy and smooth exit out of QE in the U.S. or for that matter in Japan.”

That was Charles Dallara, the former managing director of the Institute of International Finance, a major lobby group for financial institutions, speaking to CNBC on Monday. Dallara was lead negotiator for private bondholders in talks to restructure Greek debt last year during the height of the European debt crisis.

Dallara, now chairman of the Americas at investment management company Partners Group, says he was a firm supporter of quantitative easing in 2009, 2010 and 2011, but now says the question must be asked as to whether that easy money has gone on too long and if the seeds are being sown for a “sharp correction not just in bond markets, but in stock markets.

“We’re running out of room for the Fed to be a dominant part of the solution of our recovery…in many ways it’s been the only game in town as the U.S. has struggled to get a handle on our fiscal deficit…frankly, I think we have a growing risk of a severe correction in the bond and stock markets.”

China Leaders Signal Tolerance for Slowdown; Policy Shift Planned

China’s President Xi Jinping signaled a tolerance for slower expansion to avoid environmental degradation as policy makers outlined plans for the private sector to take a bigger role in boosting growth.

The country won’t sacrifice the environment to ensure short-term growth, Xi said during a study session of the Communist Party’s top leadership on Friday. His comments followed a statement issued on the same day that the State Council, which is chaired by Premier Li Keqiang, approved measures including tax reform to revamp the economy.

Xi and Li, who took over respectively as president and premier in March, are laying the groundwork to cut the government’s role in the economy, open state-dominated industries to private investment and revamp the household registration system that’s hampering urbanization. Some changes are already being trialed, while others will be decided at a meeting of the Communist Party’s leadership later this year.

“Reforms are more pressing now; growth is running out of space, there’s more pressure on the labor markets and local governments have too much debt,” said Jean-Pierre Cabestan, head of the department of government and international studies at Hong Kong Baptist University who has studied Chinese politics for three decades. “They need to boost the economy but they can’t do it with another stimulus or some form of quantitative easing.”

21 Stock Market Warning Signs Giving Global Investors Cold Sweats

This past week saw the stock market sell-off a bit.With markets near all-time highs, is it possible we’ve seen the top?”They come and go,” said Jack Bogle, warning that the market is probably due for a 25-50% sell-off. “I went through one in 1973-1974, I went through one in 2001, 2002, 2003; I went through another one 2008-2009. They’re kind of scary — often terrifying — but it’s typical.”

Indeed, the bears seem to have an overwhelming number of reasons to be worried.

We’ve compiled 21 big warning signals that are keeping the stock market’s bulls on edge and its bears on the sidelines.

First, there are signs that the latest buyers are buying recklessly.ec_250x200_nf3-60ec08d

Also, there is a lot of proof that the outlook for demand is deteriorating, profits are falling, and profit margins are too optimistic.

And it’s not just a single company or industry sending warning signals. The breadth of warnings is both historic and startling.

If you’re an investor thinking about making a move in the stock market, then you should probably consider these warning signals.

Other useful resources:

Blackout USA (EMP survival and preparedness)

Conquering the coming collapse (Financial advice and preparedness )

Liberty Generator (Build and make your own energy source)

Backyard Liberty (Easy and cheap DIY Aquaponic system to grow your organic and living food bank)

 

SOURCE : investmentwatchblog.com

10 Signs That The Americans Have Begun Freaking Out About The State Of The Economy

tornadoAll over America, restlessness and frustration are growing. It has now been almost three years since the great financial crash of 2008, and yet the U.S. economy is still a complete and total mess.

Click here to see the facts >

In fact, there are all sorts of signs that things are about to get even worse, and the American people are just about fed up. 

Virtually every major poll, survey and measure of consumer confidence shows that the American people are becoming more pessimistic about the economy

Millions of hard working Americans that worked their fingers to the bone for their employers and that did everything “right” are sitting at home on their couches tonight staring blankly at the television.  Many of them still have a hard time believing that they were laid off and that there is nobody out there that wants to give them a good job.

Us1 

There are millions of other Americans that won’t get much sleep tonight because they will spend much of the night rolling around in bed wondering how they are possibly going to be able to pay the mortgage.  We have never faced such an extended economic downturn in modern U.S. history, and a lot of people are starting to freak out about the condition of the economy.  As Gerald Celente likes to say: “When people lose everything and have nothing left to lose – they lose it.”

Every single month, the number of good jobs continues to go down.  Wall Street actually rewards companies that have a good “outsourcing strategy”.  As I have written about previously, a growing percentage of the jobs that are being “created” these days are very low paying jobs.  But you can’t support a family, pay a mortgage or even afford decent health insurance on what you would make stocking shelves at Target or passing out buckets of chicken for KFC.

The American people keep waiting for “hope” and “change” to show up, but all they get instead are more helpings of “despair” and “frustration”.

Sadly, most Americans still cling to the hope that if the “next election” will just turn out the right way that things will be okay.  But the truth is that things seem to stay on pretty much the same course no matter who we put into office.

For many years the status quo seemed to be okay for most people, but now we are starting to reap the results of the economic seeds that we have sown.

Now our economic decline is starting to accelerate and people are starting to panic.  Most Americans may not know why all of this is happening, but what many of them do know is that something in their gut is telling them that things have gone terribly, terribly wrong somehow.

Other useful resources:d608a82840b848b78f8a1b26ec02a8d4

Blackout USA (EMP survival and preparedness)

Conquering the coming collapse (Financial advice and preparedness )

Liberty Generator (Build and make your own energy source)

Backyard Liberty (Easy and cheap DIY Aquaponic system to grow your organic and living food bank)


SOURCE : The Economic Collapse

THE US ECONOMY IS ON THE VERGE OF COLLAPSE ?

Economic-Collapse-ChartEarlier this year, Wayne Allyn Root wrote a scathing commentary on the US economy in TownHall.com. Here is the gist of his analysis and his justification why he believes that total economic collapse is not far away.

“Here in America we hear the same lies and distortions about the economy as we heard about the EU:  “ Everything is fine … it’s getting better … unemployment is improving … the crisis is under control … and, of course, the recovery is already under way.”

We now know that these are delusional lies.  Europe is in freefall. Cyprus citizens had their life savings stolen by their own government – directly from their own bank accounts. In Spain, bankruptcies were up 45% in the first quarter of the year. In Italy, public buses were recently forced to return to the depot because there was no money to pay for gas. In Greece, 33,000 citizens a month are losing their electricity, for failure to pay their bills. In France, the Jobs Minister let it slip that “France is completely bankrupt.” In the UK, the economy is headed for a dreaded and unprecedented triple dip recession. It is clear Europe is entering a Great Depression.

uscrises

How far behind can America be? Economic collapse is round the corner.

Our media keep telling us that we are in “recovery”. We are constantly being told that the stock market is rising, housing is enjoying (a few) signs of life (at bankruptcy prices) and cars are selling at a better rate than the terrible rate they sold at last year … and that, because of all this, the U.S. economy is doing well. 

Talk of recovery? it’s a mirage.

Stocks are rising because the Federal Reserve is printing $85 billion per month in fake money and dropping it onto Wall Street. Housing is rising because the Fed is buying mortgage-backed securities that no one else wants, to keep interest rates artificially low. Cars are selling because government itself is buying record numbers of GM cars, and handing out billions in checks (welfare, food stamps, disability allowances) to prop up consumer spending.

Take the government checks away and the economy collapses overnight. 

Sounds like government is our savior, doesn’t it. Until you realize this is debt that has to be paid back. The only accomplishment is the destruction of our children’s and grandchildren’s future. They’ll be enslaved for life into paying unimaginable taxes just to pay the interest on the debt. Thanks mom and dad!

With record-setting debt we should at least be experiencing a recovery. We are not. The U.S. economy, despite trillions spent to artificially prop it up, is nearing complete collapse.

Last month we added a miserable 88,000 jobs. But much worse, 660,000 Americans dropped off the job rolls…in one month. 90 million working age, able-bodied Americans are no longer in the workforce. 90 million. The workforce participation rate is the lowest since 1979. For men, it’s the lowest since 1948, when record keeping began. Disposable income in January was the lowest since 1959.

Under Obama we’re truly “back to the future.”

Record level numbers of Americans are raiding their retirement accounts just to survive. 

Student loan debt is a disaster – with defaults up 36% from a year ago. Homelessness is at record levels in New York City and other urban areas. 16.4 million Americans live in poverty…in the suburbs.

Some 46 million people are on food stamps; 14 million are on disability – the next handout after unemployment runs out. Millions more are on welfare, unemployment, housing allowances, aid to dependent children and 100 other government hand-outs.

Now, add in “free” healthcare. And then there’s 22 million government employees, whose bloated salaries, free healthcare, and obscene pensions are a gigantic liability for taxpayers- sucking the life out of the economy.

Jobs that no-one wants … or can afford to take

The few jobs being created are McNugget jobs with minimum wages, no benefits, and no job security. It’s now an Obamacare economy with jobs that no one wants.

The politicians’ response? Obama disbanded his Jobs Council. Really.

Homeland Security bought 2 billion hollow-point bullets. Are these to protect the government from its own citizens when the economy collapses?

New York Mayor Bloomberg passed laws to ban large soft drinks. And the federal government awards grants to researchers to study why lesbians are fat. I wish I was joking.

Don’t get mad, get even.

It’s time to put together your own “Booming Personal Economy,” which doesn’t depend on the federal government to magically provide you breakfast, lunch and dinner – not to mention free health care and a carefree retirement. 

The government will run out of money long before we retire – so make sure you don’t.

As I explain in my brand new book, The Ultimate Obama Survival Guide, a Booming Personal Economy is what you create by seeing and seizing opportunity, where others see only misery and challenge. 

It’s what happens when you are dedicated to making lemonade out of lemons. And you’re in luck – because Obama is a lemon.

Other useful resources:Conquering_resize1

Blackout USA (EMP survival and preparedness)

Conquering the coming collapse (Financial advice and preparedness )

Liberty Generator (Build and make your own energy source)

Backyard Liberty (Easy and cheap DIY Aquaponic system to grow your organic and living food bank)

 

Wayne Allyn RootWayne Allyn Root

Is America Doomed? V The Guerrilla Economist and Ken Schortgen

economyvThis segment of The Weekend Vigilante show features a dynamic & powerful melding of the economic minds.  V, The Guerrilla Economist and renowned economist Ken Schortgen.

Readers may know V as the economist who has worked for some of the top commodity trading firms and investment banks; contributing to private think tanks shaping investment policy. His track record & predictions are uncannily accurate and well documented on his appearances with Steve Quayle.

Ken Schortgen, prominent and well respected economist with a remarkable thumb on the pulse of the global and U.S. economy; giving us their hard hitting take on what’s really going on, what’s really coming this year and why it’s so imperative that people understand this.

According to Sheila Zilinsky, the host of The Weekend Vigilante, this show is “probably the most powerful show yet on what’s coming like a speeding freight train.”

uscrises

Other useful resources:

Blackout USA (EMP survival and preparedness)

Conquering the coming collapse (Financial advice and preparedness )

Liberty Generator (Build and make your own energy source)

Backyard Liberty (Easy and cheap DIY Aquaponic system to grow your organic and living food bank)

SOURCE : wwwwakeupamericans-spree.blogspot.ro

50 Facts About The U.S. Economy That Will Shock You … perhaps some reasons why

Economic-Growth-Financial-CrashWith this article I’m including some information it may help to understand why some of the things have gone the way they have here in the USA over the past 30+ years. I’ve often wondered if the Chinese could use these tactics (remotely) I first saw portrayed in a Ronald Reagan movie as a kid to effect these economic ends in the USA. Or those here in political office replicate them to achieve the same ends…….and see where it has gotten them.

50 Facts About The U.S. Economy That Will Shock You

“Even though most Americans have become very frustrated with this economy, the reality is that the vast majority of them still have no idea just how bad our economic decline has been or how much trouble we are going to be in if we don’t make dramatic changes immediately,” writes “The Economic Collapse” .
For those unfamiliar with this site, TEC is an economic blog that regularly compiles a comprehensive list of the most startling and unsettling facts about the U.S. economy. [Read more…]

De-Dollarization: Russia Is On The Verge Of Dealing A Massive Blow To The Petrodollar

Money-Photo-by-Pen-Waggener-300x300Is the petrodollar monopoly about to be shattered?  When U.S. politicians started slapping economic sanctions on Russia, they probably never even imagined that there might be serious consequences for the United States.  But now the Russian media is reporting that the Russian Ministry of Finance is getting ready to pull the trigger on a “de-dollarization” plan.  For decades, virtually all oil and natural gas around the world has been bought and sold for U.S. dollars.  As I will explain below, this has been a massive advantage for the U.S. economy.  In recent years, there have been rumblings by nations such as Russia and China about the need to change to a new system, but nobody has really had a big reason to upset the status quo.  However, that has now changed.  The struggle over Ukraine has caused Russia to completely reevaluate the financial relationship that it has with the United States.  If it starts trading a lot of oil and natural gas for currencies other than the U.S. dollar, that will be a massive blow for the petrodollar, and it could end up dramatically changing the global economic landscape.

Bog2

The fact that the Russian government has held a meeting to discuss “getting rid of the US dollar in Russian export operations” should be front page news on every mainstream news website in the United States.  That is how big this is.  But instead, we have heard nothing from the big mainstream news networks about this so far.  Instead, we have only heard about this from Russian news sources such as the Voice of Russia…

Russian press reports that the country’s Ministry of Finance is ready to greenlight a plan to radically increase the role of the Russian ruble in export operations while reducing the share of dollar-denominated transactions. Governmental sources believe that the Russian banking sector is “ready to handle the increased number of ruble-denominated transactions”.

According to the Prime news agency, on April 24th the government organized a special meeting dedicated to finding a solution for getting rid of the US dollar in Russian export operations. Top level experts from the energy sector, banks and governmental agencies were summoned and a number of measures were proposed as a response for American sanctions against Russia.

The “de-dollarization meeting” was chaired by First Deputy Prime Minister of the Russian Federation Igor Shuvalov, proving that Moscow is very serious in its intention to stop using the dollar.

So will Russia go through with this?

After all, this wouldn’t just be a slap in the face.  This would essentially be like slamming an economic fist into our nose.

You see, Russia is not just a small player when it comes to trading oil and natural gas.  The truth is that Russia is the largest exporter of natural gas and the second largest exporter of oil in the world.

If Russia starts asking for payment in currencies other than the U.S. dollar, that will essentially end the monopoly of the petrodollar.

uscrises2

In order to do this, Russia will need trading partners willing to go along.  In the article quoted above, the Voice of Russia listed Iran and Chinaas two nations that would potentially be willing to make the switch…

Of course, the success of Moscow’s campaign to switch its trading to rubles or other regional currencies will depend on the willingness of its trading partners to get rid of the dollar. Sources cited by Politonline.ru mentioned two countries who would be willing to support Russia: Iran and China. Given that Vladimir Putin will visit Beijing on May 20, it can be speculated that the gas and oil contracts that are going to be signed between Russia and China will be denominated in rubles and yuan, not dollars.

And the reality of the matter is that China has seemed ready to move away from the U.S. dollar for quite some time.  In a previous article, I included a quote from a French news source that discussed how China’s official news agency has even called for a “new international reserve currency… to replace the dominant US dollar”…

For decades the US has benefited to the tune of trillions of dollars-worth of free credit from the greenback’s role as the default global reserve unit.

But as the global economy trembled before the prospect of a US default last month, only averted when Washington reached a deal to raise its debt ceiling, China’s official Xinhua news agency called for a “de-Americanised” world.

It also urged the creation of a “new international reserve currency… to replace the dominant US dollar”.

For much more on what China is thinking, please see my previous article entitled “9 Signs That China Is Making A Move Against The U.S. Dollar”.

So why is the petrodollar so important?

Well, it creates a tremendous amount of demand for the U.S. dollar all over the globe.  Since everyone has needed it to trade with one another, that has created an endless global appetite for the currency.  That has kept the value of the dollar artificially high, and it has enabled us to import trillions of dollars of super cheap products from other countries.  If other nations stopped using the dollar to trade with one another, the value of the dollar would plummet dramatically and we would have to pay much, much more for the trinkets that we buy at the dollar store and Wal-Mart.

In addition, since the U.S. dollar is essentially the de facto global currency, this has also increased demand for our debt.  Major exporting nations such as China and Saudi Arabia end up with giant piles of our dollars.  Instead of just letting them sit there and do nothing, those nations often reinvest their dollars into securities that can rapidly be changed back into dollars if needed.  One of the most popular ways to do this has been to invest those dollars in U.S. Treasuries.  This has driven down interest rates on U.S. debt over the years and has enabled the U.S. government to borrow trillions upon trillions of dollars for next to nothing.

But if the rest of the world starts moving away from the U.S. dollar, all of this could change.

In order for our current standard of living to continue, it is absolutely imperative that everyone else around the globe continues to use our currency.

So if Russia really does pull the trigger on a “de-dollarization” strategy, that would be huge – especially if the rest of the planet started following their lead.

The U.S. economy is already teetering on the brink of another major downturn, and there are a whole host of indications that big trouble is on the horizon.  For much more on this, please see the article that I posted on Monday entitled “If Economic Cycle Theorists Are Correct, 2015 To 2020 Will Be Pure Hell For The United States”.

Just about the last thing that we need right now is for our petrodollar monopoly to be threatened.

It would be nice if things would calm down in Ukraine and the relationship between the United States and Russia could go back to normal.

Sadly, that does not appear likely any time soon.

In fact, the Ukrainian government has already admitted that “we are essentially at war”, and on Tuesday six Ukrainian soldiers were killedand eight were wounded in a convoy attack in eastern Ukraine.

The regions in eastern Ukraine that have just declared independence have given the government in Kiev until Wednesday to pull their forces out of eastern Ukraine or else face war.

If a full blown civil war does erupt in Ukraine, it is going to take this crisis to a completely new level.

Unfortunately, most Americans are incredibly apathetic at this point and know very little about what is going on.

But in the end, this could have dramatic implications for all of us.

us7

SOURCE : theeconomiccollapseblog.com