I’ve been getting chain emails predicting or foretelling the arrival of the “Amero” and the destruction of the US Dollar for several years now. Snopes lists such emails as “false” and the pure lunacy of the whole scheme just seemed too far-fetched – until recently.
After all NAFTA (which covers primarily Mexico, Canada, and the United States of America) uses the US Dollar as the official, formal form of currency. Bill Clinton even extended an invitation to England to join NAFTA and adopt the US Dollar rather than cave to the pressure of the European Union and adopt the Euro (England opted to keep the Pound Sterling as their currency, but held the NAFTA invite as leverage against adopting the Euro).
Why would the United States of America (“the government” not “the People”) want to drop the dollar and change the currency?
If I’ve done my math right, at today’s federal funds rate of 1.0% that’s US$106,000,000,000 annually in interest alone. If I were to put that on my Discover Card (at 29.99% interest), that’s US$3,178,940,000,000.
In short, the interest alone on the National Debt is crippling the US Tax Payer. Instead of paying for programs to help build the nation, our hard-earned money is going to pay off the deficit spending of our “elected” officials.
The “Bailout” of 2008
Added as an amendment on an unrelated bill, the US Government at the direction of President George W. Bush decided to “give away” an uncapped amount of money that is over US$700 Billion. That’s a lot of money, money that doesn’t exist. Money that’s being created out of thin air, which effectively devalues the real Dollars that are in circulation today.
For example, if there were $700 Billion in circulation today, and tomorrow the Government “infused” another $700 Billion, a Dollar in your pocket would be worth half as much. That’s one part of what we know as inflation.
If you have $1 Million in your 401(k) or IRA, it will have the buying power of half that.
It doesn’t matter how much we seem to throw at the failing economy, the situation keeps getting worse and work, and the DOW keeps making record points lost per day. It’s nearly half what it was earlier this year. That in and of itself should tell you that hyperinflation has already started.
It seems as if the government is deliberately devaluing the Dollar, doesn’t it?
Panic or Relief?
With regular people living on credit, without much in savings or checking accounts, what’s to lose? It’s all just numbers on a statement, not “real” money, right?
For those among us that have lived frugally and have money saved, it’s going to be worth less… if not worthless. Most retirement accounts (IRA/401(k)) and pension plans are tied to mutual funds and the stock market. We’ve already seen what’s happened to the stock market and their mutual funds.
So are people going to panic if (when?) the government declares the Dollar as worthless? Probably.
Adopt an Existing Currency or Implement a new Currency?
I can’t imagine the USA adopting the peso or Canadian Dollar as the national currency, nor expanding the European Union’s power by adopting the Euro. England may offer us the British Pound (as we offered them the US Dollar) as the formal currency, but I don’t see conservatives allowing us to adopt their currency any time after the Revolutionary War and the Declaration of Independence. Can you?
What then? Will the Federal Reserve or the US Government issue a new currency? Some say that’s what the Amero is. This would give the government an “out” with its many debts. It would give the corporations in America a chance to “start over” with a new currency.
Deployment of US Troops on US Soil
For the first time in who-knows-how-long, the US Military will have active troops on US soil.
The Pentagon will have 20,000 uniformed troops inside the United States by 2011 to help state and local officials respond to a domestic catastrophe. (http://www.foxnews.com/politics/2008/12/01/pentagon-beef-domestic-security/)
What kind of “domestic catastrophe” could warrant a military response? Another 9/11? California Wildfires? Hurricanes and floods? Isn’t that what we have the National Guard for?
What could happen that we’d need more than local law enforcement and the National Guard? A collapse of the US Economy? The elimination of the US Dollar as the official currency? A declaration of Martial Law?
Critics of the change fear that the new homeland emphasis threatens to strain the military and possibly undermine the [Insurrection Act and] Posse Comitatus Act[s], a 130-year-old federal law restricting the military’s role in domestic law enforcement, the newspaper said. (ibid., hyperlinks added )
I can’t predict the future and don’t know if any of this is going to happen. The chain of events just seems very, very coincidental. Add to that the recent “crash” in the price of silver (arguably one of the best “alternatives” to paper money) and suddenly the pieces are beginning to make up a potentially scare future.
Are all these events (9/11, the creation of Department of Homeland Security created, mortgage collapse, economic crash, Bail-Out Bill, stock market dropping by half, retail silver shortage, silver price dropping by half, Pentagon preparing to deploy military on domestic soil) just coincidental? Is this an orchestrated plan or simply dominos falling one by one?
Or am I off my rocker? You tell me.