A Clear Choice between the Left and the Right.
America is in the deepest hole it has ever been in “debt-wise.” For every dollar our government spends (invests), about 50% is borrowed from China. Invests is the word our current administration uses instead of spending. When I recently bought a boat, I knew it was not a monetary investment in my future. When I published my new book I thought it might be an investment, but have learned that it will cost me as much as the boat, each of which will return little if any of my money. Americans know the difference between money spent down the drain and money invested. The government doesn’t seem to know the difference.
Without getting into the exact numbers of how indebted our nation is, especially to China, there is little we can do to turn the tide. There is little either candidate in this election can do to change things. This election is a clear choice between the Left and the Right. The Left wants more government and more spending while the Right wants just the opposite. The Left, represented by the current administration, will get our nation to its demise sooner than Governor Romney. At least with Gov. Romney we will feel like we have a fighting chance to stave off financial Armageddon.
China is the world’s number one superpower and the United States of America is responsible for the shift. China has 600,000 more active duty personnel in their military than the U.S. China owns more of our debt than all the debt of all the European nations combined. We all knows what happens when we, personally, don’t pay our bills, our mortgages, our rents; we lose our right to have electricity, or to have a place to live. Can you imagine what it would be like if we each had a secret source of money than would seemingly never run dry? Well, (npi) this is exactly what our government has: a Printing Press that can print money it doesn’t have.
I don’t know about you, but if I could use someone else’s money to pay my bills I would feel pretty guilty doing so and I would come to expect that to continue. The Federal Reserve, who seem to act completely independent of our government, makes most people believe that they are acting in our best interest. All they are doing is digging the hole we are in deeper and deeper.
In Larry Edelson’s blog “Uncommon Wisdom,” which I have been following for years, he states that the only way we can get out of the mess we are in is by the establishing of a new World Reserve Currency. Right now, the U.S. Dollar is the world Reserve Currency; every commodity in the world is priced in U.S. dollars. As the value of those dollars fall the price of those commodities rises. There are many factors that are affecting the value of the dollar to keep it bouyant or artificially higher than where it should be. Many countries like China and Russia are pushing to replace the dollar as the world’s reserve currency.
The primary reason our government is pushing China to quit holding down the value of its currency, the Yuan, is not so our manufactured products, our exports will have a fighting chance to compete with China’s, but to devalue the dollar so our debts can be paid off (to China) with cheaper money. To help you understand this, let’s say we devalue $100 by 30%. We would now have $130, but that $130 would still only buy $100 worth of anything. This is what we are now experiencing at the grocery store and at the gas station.
Workers in China get paid an average of 6.5 times less than workers here in the U.S. China could double or even triple the value of the Yuan and still make its products cheaper than we could here! We still would not be able to compete with them. A good way see the value of the dollar as measured against a basket of major currencies is with the ETF symbol UUP. It is currently sitting at $21.93 a share and has seen a 52 week high of $23.10 on July 24th. It hit a low of $21.64 on Sept. 14th. On the other hand, the value of the Yuan as tracked by the symbol CYB is at its 20 year high! The yuan has risen 0.4% against the dollar since the start of 2012, following its 0.3% gain last week.
I hold out little hope for America returning to its once proud position in the world. But, if it has any chance at all of regaining that position it is with Gov. Romney at the helm for the next 8 years. Regardless of our financial condition, there is more godliness in its peoples than anywhere else on earth. No other nation exalts the One True God Of Abraham, Isaac and Jacob as the United States of America does. Keeping God first and loving our neighbors as ourselves in our individual lives as well as in our government, will go further to preserve and protect “this greatest nation on God’s green earth” (as Michael Medved says) than “all the tea in China!”
God bless you and God bless America!
- Ron Paul: How Long Will the Dollar Remain the World’s Reserve Currency? (margotswebnews.wordpress.com)
- Why The U.S. Dollar’s Reign As World Reserve Currency Is Ending (etfdailynews.com)
- China To Challenge US Dollar Reserve Currency Status (blacklistednews.com)