US financial system is headed for disaster

July 23, 2013 at 2:23 a.m.

Editor, the Advocate:

Many economists/financial analysts believe events are occurring which may cause a major collapse in our national monetary system. Although most Americans believe our economy is slowly improving along with a surging stock market, the real truth is we are in a "financial trap."

At present, the U.S. dollar is known as the "world's reserve currency" which forms the basis of the world's financial system. In this system, international financial transactions are done in dollars. The bad news is many nations are concerned about our $17 trillion debt and that we are borrowing about 40 percent of the money needed to cover each year's federal budget deficit gap. In other words, we have become the world's largest debtor. It is also well known that the president's socialist agenda will not drastically cut spending or debt, believing that our debt burden is not a short-term problem. Because of these concerns, many nations want to end the dollar's role as the currency standard. Already, the International Monetary Fund is campaigning to replace the dollar standard with "Special Drawing Rights," a hybrid composed of the dollar, Euro, yen and British pound.

Many economists/financial analysts believe the dollar's role as the currency standard is near its end. If this happens, borrowing money from other nations may not be feasible or possible, and if the Federal Reserve tries to cover our debts by printing more money, our dollar would experience serious devaluation with hyper inflation. This is our financial trap, and the only possible way out is to drastically cut spending and our national debt. The problem is our Socialistic Administration is doing the exact opposite. They and the Federal Reserve believe the economy can be stimulated faster by more deficit spending supported by printing money. This is supposed to produce more tax revenue, and our overwhelming debt problem will painlessly disappear. Many governments have tried printing money to pay off overwhelming debts, but it has never worked without serious financial consequences.

If you believe in this scenario, then express your concerns in the 2014 and 2016 elections.

Allen J. Novosad, Edna



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