Better Than Nothing, But Falls Way Short of What's Needed NOW

Commentary on the Inflation Reduction Act (IRA) by two fellows at inequality.org - 

https://www.newsweek.com/trillionaires-burning-planet-package-deal-opinion-1731955

The IRA is a paltry start on a few (certainly not all) major problems.  For example, while boosting development of renewable energy, it also greatly favors fossil fuels.  Now there's an oxymoron, eh?  As to taxing the Rich Polluters, forget it.  Health care - paltry, paltry, paltry.

On a related note---

Just as bad, there are no significant, proposed legislative bills which address toxic pollution, biodiversity loss, soil degradation, and more.  They all are just as much an existential threat as is climate disruption.

On a separate note---

Yes, despite what the elites are saying, we are in a recession.  The last Jobs Report is being touted as proof to the contrary, but is anyone asking the following?  How many of those jobs are part-time?  How many are temporary?  How many are low-paying?  How many are some combination of the preceding?  How many workers have two jobs, and still can't get ahead of inflation?  Why not? Because the jobs are relatively low-paying and have close to zero benefits.

Then, too, consider this:  according to the U.S. Debt Clock, the median income here is a tad under $36K/year.  That means half our workers make LESS than $36K.  Half.  So, how is the economy surviving?  On DEBT, massive debt - national, corporate, and personal debt.  Total U.S. debt is now over $92 trillion.  Our GDP is under $25 trillion, and decreasing every second.  [See usdebtclock.org ]  All Bubbles (including Debt Bubbles) burst sooner or later.  The whole situation is unsustainable.

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Not only my opinion.  Be Well

896 Million Dollars PER DAY

That's how much our Fed Gov't pays in interest on the National Debt...every day.  And yet, DC politicians of both major Parties say the Debt doesn't matter.

http://fortune.com/2019/04/10/the-deficit-is-growing-far-faster-than-predicted/ 

By the way, the overwhelming bulk of Personal Income Taxes goes to pay that Interest.  That's the main purpose of Personal Income Taxes.  Central Banks, other Mega Banks, and other Mega Corporations are the primary recipients of those monies.  They hold the vast majority of Bonds & Treasury Notes.  ["Bonds" have maturities greater than 10 years, while "Treasury Notes" have maturities from 2-10 years.]

Gov't Services are paid for by Corporate Taxes (such as they are...Amazon paid zero Income Tax in 2018), excise taxes (highway/gas, liquor, tobacco, firearms, etc.), fees, imposts, duties, and more borrowed money...on which you pay the interest...$896 million per day this year.

Alan Greenspan once made these statements (paraphrased): the USA will never default on its Debt because when we need money, we simply print it; we can guarantee no default, but we cannot guarantee the purchasing power of those dollars.  [Right, Alan, and that's the catch or rub, isn't it?]

Every fiat (or debased) currency in history eventually failed.  The "money" became essentially worthless because the issuing government wound up printing too much of it.  That's currency inflation; price inflation is the result of too much currency inflation.  The more dollars there are, the less each dollar is worth.  Prices then go up in order for producers just to keep even, never mind get ahead.  Compared to the 1913 Dollar, today's Dollar is worth about three cents.  That's why the pair of Levi's jeans I bought in 1961 cost me $3.95, and the Levi's jeans I bought a few days ago were $49.95.  The cost of production (per unit produced) didn't go up; that cost has gone down over the years due to automation, essentially flat wages, foreign factories, etc.  Prices on everything have gone up because the Dollar becomes worth less & less every year.  That's how fiat currency operates.

Currently, we're at the tail end of today's world fiat currency system.  The whole thing (worldwide) is based on so much Debt that's it's unsustainable.  All fiat currencies in circulation today are becoming more & more worthless... because each year they are worth less.  Hello.  Global Debt is now close to $250 trillion; the entire world's GDP is about $84 trillion.  Do the math.  Such a system will fail.  DEBT will kill it.  Governments cannot simply "print" currency to get out of horrendous Debt because the result would be hyperinflation of prices; purchasing power would drop to within a micron of zero.  That's the rub.

Some sort of Great Re-Set is coming, and with it, most likely a worldwide Depression.  Can't say exactly when, but it's virtually guaranteed...all because of the massive Debt Bubble caused by fiat currency and reckless Powers-That-Be.

Not only my opinion.  Be prepared.

The Tragic State of Affairs in the USA

Preface
As a wizened old man who has had (& continues to have) a most interesting life, I find my thoughts below to be not only tragic, but comical as well.  I first developed a keen interest in American politics with the election of Ike in 1956.  So, point being:  I've lived through quite a variety of Presidents and members of Congress.  Compared to those of the past, most of the current national office holders in DC don't seem to be at all interested in representing the will of the People...all the People, not just 25% of the population.  The politicos of today are beyond the pale in a way that's darkly hilarious.  For whatever reasons, they see little to no cause to hide the fact that they are Plutocrats/Oligarchs leading us down the path to NeoFeudalism.  It's astounding...and comical.
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Here's why the USA is in dire straits, in no order of importance---

1.  The Powers-That-Be apparently have convinced the population that Debt doesn't matter...especially Gov't Debt.  The Repubs (& some Dems) plus the current Oval Office Occupier have increased our National Debt by about two trillion dollars in only two years.  And I thought Dubya Bush and Obama were bad in that regard.  Ha!  Public and private debt here is at record levels.  Corporate debt is beyond incredible.  The Debt Bubble is the mother of all bubbles, and all bubbles burst.

2.  Despite what the Gaslighter in the Oval Office claims, our GDP is decreasing.

3.  Trump continues his childish, ridiculous Gaslighting.  Most of us simply are bored with it, but many (maybe most) of his supporters still take him at his word, or worse, if he's proven wrong beyond any doubt (which happens often) about something, they don't care.  Not only is that potentially dangerous, I find it to be hilarious.  They don't care that (as the old joke goes) the lunatics are running the asylum.  Go figure.

4.  Whether inadvertently or purposely, the White House Crew and The Don are encouraging both lawlessness and racism in our Land.

5.  Encouraged by the Fed Gov't and deregulation, as well as by Propaganda, our Bubble Economy is bubbling on.  If you look at the time intervals between the Booms & Busts from the severe Recession of 1973-1975 up to present day, you'll see that we're overdue for the next Bust.  Unfortunately, the public and private Powers-That-Be seem to have convinced most Americans that's not true, that it's all under control now, that the economy "is booming"...no worries they say.  The Gaslighter-in-Chief is especially adamant about that.  Please, are you kidding us, or simply lying to us?  I find it comical that anyone believes it's all under control, and the economy is doing great.

6.  The median income of workers here is now $32,791.  So, half the workers in the USA make less than that...HALF.  That doesn't sound like the richest country in the world to me.

7.  Trump has alienated all of our Allies in the world except for the few who essentially are dictators, such as the Leaders of Saudi Arabia, the Philippines, the UAE, & Brazil...maybe another one or two, can't recall.  This is not good for us or the world.

8.  Our Two-Party System in politics is rotten to the core.  It's oligarchical in nature, and its practices rarely represent the will of the People.  Not long ago, a Princeton study found that politicians ignore that will 70% of the time.

9.  Our Gov't has managed to institute a State of Perpetual War.  The crazy idea that we are the police of the world is now taken as a given by most Americans.  Never mind that most of those actions are utterly unconstitutional, and many violate International Law.

10.  In most cases, the protections of the Fourth Amendment are totally ignored by Gov't in this day & age...all in the name of "safety".  Who's keeping us safe from those who violate the Constitution?

11.  Too many Americans no longer seem to understand the difference between nationalism and patriotism.  The former engenders arrogance and superiority; the latter engenders responsibility.  Trump and Crew promulgate nationalism.

12.  For this next point, I'll exaggerate a bit.  Exaggeration often drives home a valid point.  More and more, Americans appear to be dividing up into "tribes", so to speak.  Whether political, or religious, or economic, or cultural, or something else, these tribes often are less & less tolerant of each other than in much of the past... and more & more self-righteous.  For example, in politics the Left-leaning folks accuse the Right-leaning people of being intolerant, self-righteous, etc.  In fact, though, the Left side of the spectrum also is intolerant---of the Right side---and, self-righteous about it.  What's tragic and comical about that whole situation is that neither side thinks it's that way.  It's only the "other side" who demonstrates those failings.

13.  Finally, all across the political spectrum here in the USA, people are gulping down the Edward Bernays style Propaganda Kool Aid coming from Corporatists and Plutocrats as if there will be no tomorrow.  Certainly not everyone is, but most are.  That's the primary reason that we are in today's tragic situation.  It's not only a tragedy; it's a cosmic comedy.

Not only my opinion.  Be Well

Beware: The U.S. "Debt Ceiling" is an Utter Joke

It was instituted by Law in 1917.  In the 20th century, our Government's Debt Ceiling was raised 90 times.  From 2001 through 2016, it has been raised 14 times; and it was supposed to be raised again last Fall.  Through some sort of machinations, Congress conjured up "emergency spending funds" and postponed the problem until mid-March of this year.

Doublespeak---

March 2018 has come and gone, so what happened?  Congress SUSPENDED the Debt Ceiling until March 2019.  In other words, there is no Debt Ceiling presently.  It was suspended once during Obama's Administration as well.  Considering the history of it, arguably there never has been a Debt Ceiling.   The whole thing appears to be Orwellian Doublethink and Doublespeak.

The Nixon Shock---

Why is any of this important?  Why should we care at all?  It started with the "Nixon Shock" in 1971.  That's when the Executive Branch issued a "temporary suspension" of the convertibility of the U.S. Dollar into gold.  We went completely off the "Gold Standard".  Essentially, our Gov't defaulted on its Debt.  Shortly thereafter, the Dollar lost 25% of its value.  Our long, "temporary" excursion into fiat currency began.  Instead of being backed by gold, our "money" became backed by "the full faith and credit of the United States".  That means virtually nothing at all if our Gov't borrows, and borrows, and borrows into oblivion... and the rest of the world knows that.

The Largest Debtor Nation---

This great Land has gone from being a creditor nation to being the world's largest debtor nation.  To whom is the "money" owed?  Primarily, it's owed to foreign Central Banks, other Mega Banks (including domestic ones), and other Mega Corporations.  The kicker is this:  that Debt is now mathematically impossible to repay in full.  So why do those outfits keep loaning us funds?  For the same reason a Bank doesn't want you to ever repay the full amount on your credit card:  the perpetual interest payments; they will never end.  And from where does the Gov't get the funds to make those multi-billion dollar interest payments to Banks & Corporations...from personal income taxes, of course.

In the spirit of Orwellian Doublespeak, the Fed Reserve calls borrowing the "selling of Debt, or Bonds".  When other entities cut back on "buying Debt" (loaning us funds), the Fed Reserve (which is made up of privately owned banks) "buys" U.S. Bonds.  That essentially means a supposed part of our Gov't loans funds to our Gov't.  All this borrowing serves to devalue the fiat Dollar.

The Bottom Line---

Why should we care?  If for no other reason, because we are saddling our children and grandchildren not only with a continually devalued Dollar, but also with a Debt that will have interest payments in perpetuity.  Then there's the extremely high probability that our economy will collapse because of the Financial shocks brought on by the Fed's insane amount of borrowing.

When it comes to borrowing, the Trump Administration is following right in the footsteps of the Administrations of Obama, Dubya Bush, and others:  increasing the National Debt by multiple times.  And why all this borrowing?  For the most part, it's to maintain U.S. Hegemony throughout the world.  And why is that?  Because the availability of several key natural resources is peaking or shrinking, and without control of those resources, the USA cannot dominate the world and further enrich itself.  Naturally, the Establishment denies any such thing...hardly a big surprise.  The Plutocrats claim the whole shebang is to protect the world, spread democracy, and preserve freedom.  Right.  Edward Bernays would be proud of such claims.
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SIDE NOTE---
Price Inflation is not the result of the cost of production going up; rather, it's the result of the value of the Dollar going down.  When the value of the dollar decreases, it takes more dollars to buy the same amount of goods or services as before the decrease.
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Not only my opinion.  Be Well

The Largest Amount of Borrowed Money in Any Quarter in USA History

In the 1st Quarter of this year, the Fed borrowed $488 billion...the largest amount for any Quarter in our history.  The Treasury Secretary claims that the Bond Market is "robust", and can handle the borrowing.  In fact, that Market has peaked and is trending down.  It's starting to collapse.  Our Debt is a Bubble sitting on a pin. 

That amount of borrowing plus the Repub Tax Cuts plus other factors = a big rise in price inflation, probably within a year or so.  Mnuchin (Treas. Sec.) says it's good to have a little inflation..."We want wages to increase."  Better hope inflation doesn't exceed the increase in wages; and sorry, but most likely it will.  It's almost there already...only .5% away from the last wage increase numbers.

So much for fiscal responsibility.  Those in the Congress and the White House who claim to be "Conservatives"...aren't.  NeoConservatives are a horse of an entirely different color.

Try as they may, the Establishment (including Trump & Crew) cannot avoid the metrics of the overdue Economic/Financial Crash on the horizon.  According to a study by Deutsche Bank, countries that don't properly manage their Debt experience a huge increase in Financial shocks, shocks that can severely damage the economy.  That has been our path every 7-12 years since the 1973-1975 Recession.  You can thank the Fed, the Mega Bank Casino Capitalists, and most of our DC politicians.  It should be obvious that the bombastic Trump & Crew are not significantly changing anything for the better.  They aren't draining the swamp; they're draining the country of a decent future.  Take a look at USDebtClock.org ...not just the upper left corner, but the entire table/chart.

Not only my opinion.  Be Well

p.s.  Another reminder:  I'm not a Democrat or a Republican.

Claiming We're in an Economic Recovery is Absurd

Nevertheless, that's what the Corporate Media, the Fed Reserve, DC politicians, and the rest of the Establishment are doing.  It goes back to the last part of the Obama Era, and now includes Trump & Crew.  Let's examine several of the reasons why such a claim is absolutely false...at least, false when it comes to the overwhelming majority of Americans.  Not all, but much of the info below is taken from the U.S. National Debt Clock... usdebtclock.org

[NOTE:  Number 1 below was edited on 2-24-18.  Number 3 was edited 3-14-18...the amount of our National Debt, now just a hair away from $21 trillion.]
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1.  The current median income for individual workers is $31,654 per year; in the year 2000, it was $31,229.  Wow, what a booming increase... not.  For those who may have forgotten parts of their old math & statistics courses, "median" gives a better sense of things than does "average".  With "average", the millionaires & billionaires skew the results.  When we use "median income", that means half the workers make less than $31K+change.  HALF.  There was a time when $31K/year was a decent income; that's long gone.

2.  The current number of unemployed is more than double the number claimed by the Feds/Trump.  [See the piece/post immediately prior to this one... and the Debt Clock.]

3.  The National Debt was $2.6 trillion in 1988, and the Debt to GDP ratio was 49%.  Currently, the National Debt is $20.96 trillion (edited 3-14-18), and the Debt to GDP ratio is about 105% (the last number is for 2017).  [In 1980, our National Debt was only $906 billion, not even one trillion.  The Reagan Era more than doubled that number.]  The point being:  these numbers are a major reason for the world losing confidence in the Dollar... with fiat currency having no intrinsic worth, the only reason people value it is because of confidence.  Trump & Crew are well on their way to increasing the National Debt by trillions more.  Don't believe the Propaganda that all will balance out because of increased jobs resulting in more income tax revenue.  Reagan said the same thing, but the Debt almost tripled.

4.  The IMF has launched a ten-year program/plan that will replace the Dollar as the world's reserve currency.  The negative impact on our economy will be significant.

5.  The Establishment touts the claim that wages have risen 2.9%.  [I don't recall over what time span.]  Never mind about half of that is lost to the hidden tax known as price inflation.  With the current median income (see number 1 above), the increase comes to $76 per month... not too exciting.  With the minimum wage, the increase comes to 21 cents per hour... appreciated, I imagine, but not cause for celebration.

6.  Toward the end of March (next month),  several countries will start accepting Chinese Yuan in exchange for oil.  That will be the beginning of the end for the almighty PetroDollar.  Within a very short time, the Bretton Woods international monetary system will be no more.  The Dollar will suffer significantly; because of increased inflation, it will lose even more of its purchasing power than it already has lost.

7.  The overall worldwide Debt Bubble (public & private debt) is at a record high level.  All financial bubbles burst; in all of history, there hasn't been one that didn't.  The Debt Bubble dwarfs all the others; that's true even if only public debt is considered.

8.  The U.S. Bond Market is collapsing.  It's not the only one in the world doing so.  Bond markets collapse because of approaching insolvency... at least, that's one of the major reasons.

9.  Bizarre financial derivatives still are running at full speed.  They have only window dressing restraints from the Feds.

10.  When the Establishment reveals the monthly Jobs Report, it never gives important details:  how many of those jobs are minimum wage, and/or part-time, and/or temporary?  Currently, there are over 27 million part-time workers in the USA.  The Debt Clock doesn't indicate how many of those would prefer a full-time job... but I suspect that most would.

11.  Trump & Crew are making it easier for the Fed and Mega Banks to transfer wealth from the majority of Americans to those in the Upper Crust.

12.  In general, the permanent Tax Cut gift given to the Rich by Trump & Congress will not result in capital expansion of business enterprises.  The Rich and Super-Rich will put those tax break savings elsewhere.  I suspect every one of them knows that a Crash is coming... and that it's unavoidable.  Their primary concern is to protect their families & their wealth.
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Not only my opinion.  Be Well

It's NOT About Korea, Syria, Terrorism, or Saving...

civilians from any of that.  It amazes me how some Americans, especially some supposedly "Conservative" Americans, ignore facts, the Constitution, & history and immediately wrap themselves in the flag whenever any group of conniving politicians starts beating the war drums.  Our history as a nation is replete with examples of that.  Here are the real reasons those drums are beating so loudly; this is why private and public Oligarchs now constantly are angling for another major war.  The following points are the main reasons why "Republicans" are so loud and "Democrats" are virtually silent (and thus complicit) on the whole war mess---

1.  The fiat Dollar's status as the world's reserve currency is being seriously threatened.  Countries not only are dumping Dollars, but also are joining together in agreements that bypass the Dollar completely.  That's especially true regarding Russia, China, and other countries in Asia...but also elsewhere.  [Many countries appear to be fed up with the financial & economic Bully-Boy tactics of the highest levels of our Gov't...and justifiably so.]  The PetroDollar is on its last legs everywhere; its collapse is fairly imminent.  The USA's military, which essentially is the Fed Reserve's enforcement/intimidation arm, often has been used to keep countries in line relative to the dominance of the Dollar.  [That's probably why Saddam was taken out.  He was on the verge of selling oil in non-Dollar currency.  Libya and Iran were threatening to do the same.]  Without that Dollar dominance, our fiat Dollar and debt-based economy would be toast...much more than both are already.

2.  The Global Debt Bubble, which is a gazillion times larger than the Stock Market Bubble, is on the verge of bursting.  Arguably, it could be said that it's already bursting.  I suspect that most Oligarchs (especially those in public office) think another major war will kick the can down the road.  Except for the "Defense" (which should be "War") Sector of the Stock Market, investors then would turn to the Bond Market (which should be the DEBT Market)...because they perceive it as less risky.

3.  I also believe that, above all else, Oligarchs have a great desire to keep our debt-based economy rolling along.  Why?  Because it transfers wealth from the Poor and Middle Classes to the Upper Crust better than anything since Feudalism.  Adjusting for inflation, in the last thirty years or so the incomes of the Super-Rich have gone up by 700%.  In the same period, the incomes of the rest of us have remained relatively flat.  Our economy primarily is based on two things:  Debt, and War (referred to as "Defense" by the Oligarchy).  Since the advent of rampant Financialization, "average" Americans have had to go into fairly massive debt in an attempt to simply stay even in terms of lifestyle.  Unfortunately, that debt isn't doing the job in most cases.  Close to 50% of us are living in poverty or near-poverty, and the Middle Class basically has been hollowed out.  Most Oligarchs don't appear to care, but they have very effective Propaganda techniques to make some people think they do care.  Plus, they have tried & tested diversion techniques (such as war, the Two-Party political system, phony "Populist" movements, etc.) to distract us from the greatest transfer of wealth in human history.  [As I've stated several times, none of this is a grand "conspiracy".  Oligarchs mostly do all this simply because they have mutual interests and objectives; it's merely "good business" practice to them.  Sometimes they work together, but most of the time it's done independent of one another.  Even if it were a "conspiracy", of what use would that knowledge be?]
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Side Notes:  here's a little history---

1.  Since the end of the Korean Conflict [that's the official, technical name...because then supposedly our participation in that war doesn't violate the Constitution] in the early 1950's, our Gov't has had nuclear weapons in S. Korea aimed at N. Korea.  Is it any surprise then that N. Korea has developed nukes?

2.  Not too many years ago, N. Korea offered to freeze its nuke program in exchange for concessions (such as the lifting of economic/financial sanctions) from our Fed Gov't.  Our Gov't refused even to have talks about that proposal.

3.  Even more recently, N. Korea offered to freeze its weapons-delivery program in exchange for the lifting of sanctions.  Again, our Gov't refused to have talks about it.

4.  China has been trying for years to get our Gov't to just sit down and talk with N. Korea.  No luck.

5.  The 1950's Korean "War" never officially ended.  A "Cease-Fire" Agreement was made between military muckiwups on both sides, but the Gov'ts involved have not yet signed a Peace Treaty.  Technically, they're all still at war.  Any good or common sense appears to be lacking on both sides.

6.  Various reports indicate that most of N. Korea is experiencing famine to one degree or another.  The Gov't there is desperate for relief...one way or another.  I can't think of one good reason for not sitting down and having talks with them...rather than threatening an unconstitutional First-Strike with a nuclear option.
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More Notes---

It should be obvious by now that Hillary Trump is not:  "America First", or "draining the swamp" in DC, or going to favor the little guy over outfits like Goldman Sachs (now, even more so, it's Gov't Sachs), or going to make sure that "everyone has healthcare", etc., etc., etc...ad nauseam.  The man is Same-Old, Same- Old, except that he's a much more dangerous version.

Relative to the title of this piece, the bottom line is this---  the war drums are all about maintaining the American Empire, the world fiat Dollar, our debt-based economy, and the tools that make the Super-Rich richer.  They have almost nothing to do with saving average people or helping other countries.
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Not only my opinion.  Be Well

The Biggest Bubble of Them All

Please read this piece completely before doing this--- open up a new window on your machine and find:
usdebtclock.org  ...I know, it sounds boring; trust me, it's not.  This is not the old Debt Clock.  This one has many, many categories of both public and private debt...and other important factors.

Take note of the following---

1.  Scroll down to the second to the last line of numbers.  Notice what "Corporation Assets" are doing as compared to "Household Assets".  You have to look carefully and take your time.  Don't focus only on the last digits in the trillions of dollars number; also watch the middle three digits until they change.  Supposedly, this is all in real time.

2.  Go up one line and find "US Debt Held by Foreign Countries"...decreasing relatively rapidly.  They are dumping US dollars.  According to Ron Kirby of Kirby Analytics, the total number of dollars dumped in the last 8-9 months is just a bit shy of one trillion.  Who is "buying" the debt?...probably the Fed Reserve.  That's more monetizing of our debt, which is unsustainable.

3.  Go up two more lines of numbers to "Money Creation" and all the way to the right find "Currency and Credit Derivatives 2016".  Last I looked, the total was well over $478 TRILLION.  That's many, many times more than the entire world's Gross Domestic Product (GDP).  Derivatives are a type of gambling bet.  Given the numbers, all losses could not possibly be covered...which is what happened in 2008.  That's why things like the Bespoke Tranche Opportunity not only are ridiculous, but harmful/dangerous as well.  Furthermore, they drain money from what could have been investments in means of production...the expansion of factories, or new businesses.

For info on the Debt Clock, scroll all the way down and click on "About" over toward the right side.
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On a different note, there's a MUST-SEE documentary on Netflix (and probably elsewhere online):  "Money for Nothing".  It's a partial history of the Fed Reserve, showing how that institution---along with the Administrations of LBJ, Nixon, Carter, Reagan, Clinton, both the Bush men, and Obama---have contributed mightily to the economic ruination of the USA.  Yes, they all did some bit of good for extremely brief times, but overall their policies and actions have brought us economic disaster... unless you're Super-Rich.  If you don't agree, watch the film.

Not only my opinion.  Be Well

Has the Crash Already Started?

Let me state up front, I'm not an economist or monetary theorist, or anything of that sort.  I rely upon a wide variety of those people (their writings & interviews) for information; that variety stretches all across the political spectrum.  This is not a "Right-Left" issue.  Also, any conclusion from anyone regarding an economic crash really is nothing more than an educated guess; no one knows for certain (despite what they might say) until after the fact.  Nevertheless, things are not looking good, as follows.

1.  China already has started dumping the dollar.
2.  Japan (one of our staunchest allies) is setting up a currency swap agreement with Russia...totally by-passing the dollar.  Trade between those countries will be in rubles and yen.
3.  Several other Asian countries are setting up currency swap agreements amongst themselves...totally by-passing the dollar.
4.  The BRICS countries have launched their own development bank.
5.  China and Australia have set up a currency swap agreement...by-passing the dollar.
6.  India and Japan have done the same.
7.  China has set up currency swap agreements with several countries.
It seems clear that many countries are sick & tired of the U.S. Govt's Financial & NeoImperalist Hegemony.  This could very well mean the end of world reserve currency status for the dollar.

In addition---

1.  All the analysts I've read or heard agree that stocks & bonds here are highly overvalued; to a slightly lesser degree, so is real estate.  These same analysts say that the Fed Reserve has been propping up the financial & real estate assets for years with QE and essentially ZERO % interest rates, but now the Fed basically is out of tricks.  If they raise rates to where they should be, the Recession will slide into a full-blown Depression; if they don't, the Asset Bubble will burst...as all bubbles eventually do.
2.  The Fed Reserve is monetizing our debt.  Since the Crash of 2008, it's the Fed who has been buying the majority of U.S. Treasury Bonds.  Foreign gov'ts no longer are as interested in financing our debt as they once were.  Monetizing our debt is not sustainable.
3.  As stated in a previous post, the prices of gold and silver (to a lesser degree) are being manipulated by Mega Banks and Mega Hedge Funds in order to give the dollar the appearance of being strong.  Some evidence suggests that Gov'ts also are involved in this price manipulation.  Keeping the prices low via manipulation of the Futures Market is a priority for the Oligarchs.
4.  The real unemployment rate in the USA is estimated to be somewhere around 20%, not the 5.X% reported by the Gov't & the Corporate Media.
5.  Most of the money pumped to banks via QE is either still sitting in the banks OR it was invested in no-job-producing ventures, such as foreign currencies, bizarre financial derivatives, physical gold, and physical silver...as well as the Futures Market.  Put simply, the Fed saved the Mega Banks rather than the economy.
6.  The Global Debt Bubble now is about $200 trillion...and ready to burst.
7.  It's estimated that the Financial Derivatives Bubble is about $1.25 quadrillion... a bomb that may or may not eventually explode.

None of the above is good news.  The global economy appears to be imploding.

Even if the dollar's world reserve currency status ends, though it would collapse our economy, it wouldn't be the end of the world (so to speak); however, the road to recovery would be long and extremely difficult.  A few analysts are predicting that we will be bartering in commerce for a time; I think that could happen, but it's not for certain.  Nevertheless, just to be safe, I see a few things that people would be wise to do.
1.  Get out of any MEGA Bank, ASAP.  As pointed out in a previous post, in the event of a crisis they will be BAILED-IN.  Your money will be confiscated..."legally".  That's according to the latest G-20 Agreement signed by President Obama...late last year.
2.  Keep some amount of ready cash stored at home...or somewhere nearby & always accessible.
3.  As much as you can, accumulate some amount of commodities*** (including food) that might be used for trade.  That's not to say you need to go to the extremes of some of the "Preppers" out there, but it seems prudent to position yourself so that you could survive for at least a few months.  IF there is a huge Crash, it might take that long (or longer) to get some sort of monetary system up & running...some consumer liquidity in place.
***Commodities for barter would include:  OTC medicines, water filters, food seeds, long shelf-life foods, firewood, toiletries, gasoline & oil, silver, common calibers of ammunition, various tools (hoe, shovel, etc.), warm clothing, solar energy components (if possible), fresh produce (if possible), blankets, alcoholic beverages, & yes, even tobacco, food animals if possible (chickens, goats, etc.), & others.  Pick & choose.  Some, such as seeds, toiletries & water filters, take up little space.  [I suspect that I've missed some of the best items for bartering...do some research on your own.]

I realize all this sounds rather pessimistic.  I see it as being realistic.  Many economists, monetary theorists, money/portfolio managers, financial analysts, etc. agree that we are facing the distinct possibility of a major financial/economic Crash much worse than 2008 sometime relatively soon.  Some of them predict no later than the end of 2016.  These people span the entire political spectrum, so I don't believe this is political, partisan propaganda.  Most of the works I've studied are not by people selling gold or silver...or anything else, not even a book.  That suggests we should pay attention to what they're saying.  Again, though, remember that it's all an educated, best guess.  No matter what they say, none of this is guaranteed to happen.  Nevertheless, it very well could happen.  As the Boy Scouts say, "Be Prepared".

Not only my opinion.  Be Well

The Coup in Greece & Why it's Important to You

The new government in Greece was blackmailed by Oligarchs.  The Greek Gov't did not close the banks; it was the European Central Bank that did so.  Imagine if, for example, the Fed Reserve here closed all banks in the USA.  They would be re-opened only if our Gov't agreed to receiving a large loan AND the following:  raising taxes on everyone; cutting SS (which is paid for by every individual over the span of his/her working life); and selling off public infrastructure to mega corporations.  What do you think would happen?  I think our Gov't would cave in to the demands.

Those at the top of the hierarchy in the Euro-Zone, the IMF, Germany (the richest country in Europe), the European Central Bank, various hedge funds, etc. brought about the coup in Greece in order to continue Debt Bubble economies there and throughout the world.  Greece had been mounting what probably is the first democratic challenge in the modern world to the oligarchical, fiat money, central bank, debt bubble, false economic model, and wealth-transfer-to-the-rich SYSTEM.  It will be interesting to see what the Greek Parliament does now.

On Democracy Now tonight, it was pointed out that Goldman Sachs had been involved in a fraudulent way in getting Greece to qualify financially for the Euro-Zone in the first place.  Goldman apparently made a lot of money on the deal.  That was back when, of course, Greece had an entirely different government.  My point is that what's going on doesn't involve only the IMF, the Euro-Zone, the European Central Bank, and Greece.  Other mega banks are also a part of the whole scenario.

So, why should anyone care, especially anyone in the USA?  Here's why---

The situation in Greece is but one example of what's going on around the world relative to Neoliberalism.  Using various institutions (mega banks, other mega corporations, the IMF, the World Bank, the Bank of International Settlements, the WTO, "Free Trade" Agreements, governments, and others) and rampant Edward Bernays style propaganda, Neoliberals are ensuring the continuation of the largest transfer of wealth in history from the poor & middle classes to the super-rich.   Many methods are used, not the least of which is to make certain that everyone everywhere is in massive debt.  [None of this is a "conspiracy"; most all of it is in plain sight.]

Sooner or later, the worldwide Debt Bubble (public & private) will burst.  History shows us that all financial/economic bubbles eventually do so.  I imagine that Oligarchs either have, or are working on, some new system of money and economics.  Once the crash occurs, though, it may take months or more to institute that new system.

Until We the People in every country stop putting faith in deceitful politicians, this all will continue.  That's not pessimism, it's reality.  That means all politicians in all the traditional, major political parties in every country.  They've had their shot for hundreds of years.  In general, they have failed to enable a just and prosperous existence for all of us on a long-term basis.  It continually amazes me that people support these same, old, hack political parties and their dismal records.  They all, and that includes the Democrats in this country, work for the Super-Rich.

Not just my opinion.  Be Well

Game Over

This is a Comment I made on the CBS online newscast for 9-18-13---  [The ADDENDUM below is not part of the original Comment.]

ScottHaley says--- 
1. RE: Fed to keep interest rates low by buying more bonds--- Ask yourself, where does the Fed get the money to "buy bonds"? Is it from the Treasury (fiat printing, out of thin air), or from its member banks (which, according to a 1984 Fed Court case, "are not Federal instrumentalities, but are private corporations")? ["Buying T-Bills or Gov't Bonds" is Gov't-Speak for loaning the Gov't money.] Who gets the interest payments when the Fed "buys bonds"?

2. The Fed Reserve is authorized by the 1913 Fed Reserve Act, a LAW. That Law allowed the Congress to abrogate one of its required constitutional duties: to regulate the value of our money. But there's a problem with that, long ignored by the DC politicos: no law supercedes the U.S. Constitution. Politicians know that full well, but ignore it. This issue is important because Congress supposedly answers to the People, but the Fed (according to Greenspan on a PBS interview back when) "answers to no one"..."no one has authority over us".

3. RE: Obamacare--- According to my research and what was reported on CBS News, a policy via Obamacare tailored to me personally would cost approximately $600 per month. I can't afford a policy for $100 per month. So much for the grand benefits of Obamacare...at least, in relation to me.

4. RE: shutting down the Gov't v. raising the Debt Ceiling--- For the past 80-85 yrs or so, the Fed Gov't has been adhering to Keynesian Economics...essentially, institutionalized deficit spending. It's not a matter of the Gov't being bankrupt in the future; it's already bankrupt, & has been for decades. The politicians have no intention of ever eliminating the National Debt; the Debt Bubble will continue to grow until, like all bubbles, it eventually bursts. The recent "sequestration" efforts did nothing substantial to reduce spending; those efforts only addressed the proposed INCREASES in spending. Even those are being exempted by Congress passing laws to that effect. Deficit spending is continuing, & will continue, until the Debt Bubble bursts. Then it's goodbye Keynes... & our economy...game over.  

ADDENDUM: Since going completely off the Gold Standard in 1971 (under Nixon), the only reason the dollar has any value at all is because it is the world's reserve currency.  With ongoing institutionalized deficit spending and the ever-increasing national Debt Bubble, inevitably the time will come when other countries decide that the dollar should no longer be the world's reserve currency.  That's when the bubble will burst; countries will dump their U.S. dollars.  That will cause our economy to tank.  Game Over.  What can be done to prevent that scenario?  In my opinion, nothing substantial---the propaganda favoring Keynesian Economics is too thick.  Will we recover from the biggest crash in history?  I believe so, but it will be an incredibly long, difficult and painful recovery.