The final collapse of the US dollar it is just around the corner

Discussion in 'Economics' started by SouthAmerica, Mar 10, 2011.

  1. March 10, 2011

    March 4, 2011
    Harvard historian Niall Ferguson explains America's place in the new world economic order.
    http://www.cnn.com/video/#/video/us/2011/03/04/gps.niall.ferguson.cnn?iref=allsearch


    Yes, they did cut the part of that video with critical information that they don't want Americans to know about it.

    Basically Niall Ferguson said: based on global history, and he mentioned many actual examples in the last 1,000 years - every time a superpower starts spending more money on interest expense related to its outstanding debt, than in defense spending – that is a major “Red Flag” and a signal that the superpower has reached the end of the road, and the United States as you can see by these figures is reaching that point when empires die a quick and sudden death.


    *****


    US Defense Department Base Budget:
    Year 2012 = US$ 553 billion
    Year 2011 = US$ 549 billion


    *****


    Historical Data Fiscal Year End
    US Interest Expense Fiscal Year 1988 to 2010

    2010
    $413,954,825,362.17
    2009
    $383,071,060,815.42
    2008
    $451,154,049,950.63
    2007
    $429,977,998,108.20
    2006
    $405,872,109,315.83
    2005
    $352,350,252,507.90
    2004
    $321,566,323,971.29
    2003
    $318,148,529,151.51
    2002
    $332,536,958,599.42
    2001
    $359,507,635,242.41
    2000
    $361,997,734,302.36
    1999
    $353,511,471,722.87
    1998
    $363,823,722,920.26
    1997
    $355,795,834,214.66
    1996
    $343,955,076,695.15
    1995
    $332,413,555,030.62
    1994
    $296,277,764,246.26
    1993
    $292,502,219,484.25
    1992
    $292,361,073,070.74
    1991
    $286,021,921,181.04
    1990
    $264,852,544,615.90
    1989
    $240,863,231,535.71
    1988
    $214,145,028,847.73

    Source:
    http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm


    Public debt owned by foreigners has increased to approximately 50% of the total or approximately $4.5 trillion. As a result, nearly 50% of the interest payments are now leaving the country, which is different from past years when interest was paid to U.S. citizens holding the public debt.

    Interest expenses are projected to grow dramatically as the U.S. debt increases and interest rates rise from very low levels in 2011 to more typical historical levels.

    In a Nutshell: In the coming years as interest rates go up in the United States the “interest expense” paid on the outstanding US debt will explode upwards, and by 2020 the US government is estimated to be spending about $ 800 billion in interest expense per year.


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    US Historical Debt Outstanding - Annual 1981 - 2011

    03/10/2011 14,285,000,000,000.00 = Obama
    09/30/2010 13,561,623,030,891.79 = Obama
    09/30/2009 11,909,829,003,511.75 = Obama
    09/30/2008 10,024,724,896,912.49 = Bush Jr.
    09/30/2007 9,007,653,372,262.48 = Bush Jr.
    09/30/2006 8,506,973,899,215.23 = Bush Jr.
    09/30/2005 7,932,709,661,723.50 = Bush Jr.
    09/30/2004 7,379,052,696,330.32 = Bush Jr.
    09/30/2003 6,783,231,062,743.62 = Bush Jr.
    09/30/2002 6,228,235,965,597.16 = Bush Jr.
    09/30/2001 5,807,463,412,200.06 = Bush Jr.
    09/30/2000 5,674,178,209,886.86 = Clinton
    09/30/1999 5,656,270,901,615.43 = Clinton
    09/30/1998 5,526,193,008,897.62 = Clinton
    09/30/1997 5,413,146,011,397.34 = Clinton
    09/30/1996 5,224,810,939,135.73 = Clinton
    09/29/1995 4,973,982,900,709.39 = Clinton
    09/30/1994 4,692,749,910,013.32 = Clinton
    09/30/1993 4,411,488,883,139.38 = Clinton
    09/30/1992 4,064,620,655,521.66 = Bush Sr.
    09/30/1991 3,665,303,351,697.03 = Bush Sr.
    09/28/1990 3,233,313,451,777.25 = Bush Sr.
    09/29/1989 2,857,430,960,187.32 = Bush Sr.
    09/30/1988 2,602,337,712,041.16 = Reagan
    09/30/1987 2,350,276,890,953.00 = Reagan
    09/30/1986 2,125,302,616,658.42 = Reagan
    09/30/1985 * 1,823,103,000,000.00 = Reagan
    09/30/1984 * 1,572,266,000,000.00 = Reagan
    09/30/1983 * 1,377,210,000,000.00 = Reagan
    09/30/1982 * 1,142,034,000,000.00 = Reagan
    09/30/1981 * 997,855,000,000.00 = Reagan
    09/30/1980 * 907,701,000,000.00 = Carter


    *****


    As you can see by the above data: in the coming years the Defense budget will be reduced and move towards the $ 500 billion dollars per year level - at the same time that "Interest Expense on Outstanding US Debt" will explode upward into the $ 500 and $ 600 billion level.

    The handwriting is on the wall: very soon the United States it will be spending more money on interest expense regarding its outstanding debt than on Defense spending.


    You can see on this video the impact that a collapsing US dollar and International Monetary System will have on the global economy:

    http://www.youtube.com/watch?v=PCAWqSNHRmI&tracker=False&NR=1


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  2. March 10, 2011

    SouthAmerica: Just God knows what it will be left standing of the global economy after the final meltdown of the US dollar, and the collapse of the current international monetary system.

    It will be a lot worse than the collapse of the Soviet Union, because of the special status of the US dollar as the main global foreign reserve currency in 2011.

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  3. S2007S

    S2007S

    The collapse in the dollar is coming, of course everyone will ignore it as much as they can until it finally happens. And its coming a lot sooner than most think. The crisis is far from over!!! FAR from OVER!!!!!
     
  4. emg

    emg

    "The final collapse of the US dollar it is just around the corner"


    Will take a long time if the dollar collapse.
     
  5. 40 years ago it was


    1USD = 5CHF

    Today it is

    1USD = 1 CHF

    The collapse already happened.
     
  6. joe4422

    joe4422

    But remember, once the US makes the dollar worthless, then the interest payments will go to zero.


    I think long ago we made a deal with the Arabs and China. We'll build up your countries, you buy our debt, and you can pay us back when we default on all of it.
     
  7. March 10, 2011

    SouthAmerica: Reply to emg

    The collapse of the US dollar and the US economy will happen faster than the collapse of the Soviet Union – a financial collapse of the US dollar and of the international monetary system it will happen at the speed of light. Today, empires die a quick and sudden death just like the Soviet Union.

    In September and October of 2008 we came very close to a total meltdown of the US dollar and US economic and Financial system, and the experience served just as a preview of the coming meltdown of the US dollar and of the US economy.

    But in the coming financial crisis of the US dollar the world is not going to have the US government to serve as the safety net for the international monetary system – in the coming US dollar and international monetary system meltdown everything will spin completely out of control in a massive financial implosion into a black hole.

    .
     
  8. You guys do realize that an inflated USD is about the best thing that could happen to America right now, right?
     
  9. ?.....What?....That it must be a good time to earn some "free money" by short-selling some EWZ right now, "at the market". :D
     
  10. Hasn't the OP been calling for a collapse of the USD for, oh I don't know, two years now?
     
    #10     Mar 10, 2011