What Americans also don’t know is the real collapse is happening right now, and has been going on for several years now. 1 in 3 Americans are dependent on the U.S. Government for financial assistance, in one form or another (Social Security, Welfare, Medicare, etc.). 1 in 5 Americans are on welfare alone. And the REAL Unemployment Rate, when you factor in illegal immigration, people who have stopped looking for work, people “under-employed”, or people who have been out of work for over 1 year, and are removed from the official Unemployment Index, is at least 15%, or about 1 in 6 adult Americans.
This just puts more an more pressure on the U.S. Dollar to be over-produced to support a dying economy, where the dollars are “made up” by banking interests, not formed from a position of strength, or actual production output. The Dollar is dying for many reasons, but the nation, from Washington to Main Street, is at it’s weakest economic point since “The Great Depression”. The period from 1930-1939 was the only period where actual unemployment has been this high (we doctor the official numbers much more in these days). The point is the dollar is spiraling downward, like the flush of a toilet bowl. It only has value to it’s dependents, and it’s tax slaves. Everywhere else, it is getting left in the dust by innovations like Bitcoin.
Bitcoin is not a direct competitor to the dollar at this point, but it’s upside is something the dollar only dreams about. Being only a few billion in total market capitalization, Bitcoin is just starting to gain traction worldwide. Being so small, like a dingy in the Pacific Ocean, a “whale” (large investor) can go by and cause an incredible fluctuation in it’s market future as shown here. A $100-$200 Million investment in Bitcoin could change the value of BTC by hundreds of percent within hours. A country could look to Bitcoin as a national currency, and make its value grow greatly almost overnight. With fiat currencies dying left and right (Argentina, Cyprus, Greece, Zimbabwe, etc.), this is a more and more probable outcome, not just pie-in-the-sky. The odds are in Bitcoin’s favor.
Bitcoin value vs. the Dollar value will have an inverse relationship over time, going forward. The more value the dollar loses, the more Bitcoin will be worth against it. Dollars will buy less and less of it as the REAL U.S. economic inflation rate grows past the 5% or so currently in effect. This train will not stop. And neither will Bitcoin.
Countries like Russia and China, who has quite the buddy-buddy economic relationship, have publicly stepped out against Bitcoin this year. That may or may not be the case. One theory is they are dissuading their tax slaves from investing in a non-government issued currency, at least until they can co-opt its value themselves at the government level. Why let the minions set the price? The wise thing to do would be for China, for example, to set the price of the Chinese Yuan against Bitcoin, as a neutral 3rd-party, at 1 Yuan = 0.001 BTC. As Bitcoin value and demand increases over time, particularly in the highest populated nation in the world, what will that do to the Yuan? Exactly. In my opinion, this card is still on the table. A larger strategy to, if not outright control the BTC market, manipulate it to their selfish interests is a viable option for these totalitarian states. China and Russia may choose to play it down the road, but when they’re ready. Their indentured servants can wait until then.
The Chinese have the 2nd-largest economy on Earth (per GDP) to the U.S., and growing rapidly. They will usurp the Western stranglehold over the world’s markets as the true market leader eventually; it’s just a matter of when. They “Death of the Dollar” will tie-in with that intimately.
Keep in mind how Chinese culture works. They don’t make public threats, or declarations of power. They see the U.S. Dollar as an enemy and will benefit greatly from its demise. Where Russia boasts egotistical bravado and swag, Chinese moves coolly, calmly, methodically to surround its enemy before it strikes, like a master chess player. Bilateral trade agreements with multiple nations, joining the BRICS Development Bank, massive gold mining and purchases worldwide, while building their military might into a global superpower.
They have had enough of the U.S. Government’s economic nonsense and will look to suffocate the U.S. slowly, behind the scenes. Russia and China combined could collapse the dollar right now, if they wanted to, but they don’t for two reasons. 1) Americans are such great consumers that it would cause great damage to the Chinese economy in the short term. The U.S. is by far China’s #1 export partner. 2) They have not come up with a global replacement for the dollar, yet. But they’re working on it as we speak.
So let Russia’s Putin pound the podium with zeal. China is the one behind the red curtain, and they have a bill for the U.S. for over $1.2 Trillion in debt. The U.S. Dollar will pay that debt, one way, or another. And so will every American citizen pay for the sins of their economic masters.
Images from Wikimedia Commons and Shutterstock.