2011 Economic Solutions

"The fate of the U.S. Dollar and America's economic future will be on the table at Wednesday's (Jan. 19, 2011) White House State Dinner for visiting Chinese President Hu Jintao, warns Swiss America Chairman Craig R. Smith, monetary expert and author of Crashing the Dollar: How to Survive a Global Currency Collapse.

On Sunday President Hu called the present U.S. Dollar-dominated currency system a "product of the past." [2] Because of its worldwide importance, said Hu, "the U.S. Dollar should be kept at a reasonable and stable level." [3]

The U.S. Dollar since World War II has been the world's "reserve currency," meaning that oil and other key commodities are priced and purchased using dollars. This has given the United States huge advantages in the world economy, including the sole power to print global money.

As Smith explains in Crashing the Dollar, we have used this position of trust like a credit card, buying what we wanted merely by printing paper dollars and paying our debts with devalued money." FULL NEWS RELEASE

"The destiny of a currency determines the destiny of a nation," said the brilliant free-market economist Dr. Franz Pick.

Stated another way: as the era of American economic supremacy dies, the hopes and dreams of a brighter future for our children also die.

The most important news story of 2010 went almost unreported because it happened during the same week in November that Americans ate their fill on Thanksgiving and shopped until their wallets were empty on Black Friday.

During Thanksgiving week, Russia and China jointly agreed that they will no longer use U.S. Dollars when trading with each other. This could do huge, perhaps fatal, damage to the U.S. Dollar's special status as the world's "Reserve Currency" in global trade.

What will the new year bring?

This question is harder to answer today than in more than half a century.

Our future as a nation is no longer in our own hands, as the Russia-China agreement shows.

We have borrowed trillions of dollars abroad and addicted ourselves to ever-increasing amounts of such borrowing.

We have given others, including nations such as China that we once regarded as enemies, weapons of economic mass destruction that could wreck our economy and end America's dominant position militarily and economically in the world.

Our weakening and loss of financial independence also make us vulnerable to global economic problems such as the increasingly-likely collapse of the Euro when Germany runs out of money to bail other European nations out of the consequences of their profligate spending

A solid majority of American voters in the November 2010 election cast their ballots in most states for candidates promising smaller government and lower taxes.

This widespread popular rejection of class warfare politics led to a modest rise in corporate earnings, employment and stock prices in recent months.

But economic recovery remains anemic, in part because so much remains uncertain to potential investors.

Like the productive individuals going on strike in Ayn Rand's novel Atlas Shrugged, corporations are holding back trillions of dollars by not investing or hiring new workers until they know what taxes, health care and regulations will cost.

What to expect next?

In our 29th anniversary edition of Real Money Perspectives, I explain why we could soon become "Weimerica," a nation racked by hyperinflation as was Germany's Weimar Republic after World War I. I'll also offer specific ways to survive, thrive, and even prosper during a collapse of the dollar.

Lowell Ponte, former think tank futurist and co-author of Crashing the Dollar, makes a persuasive case that our government is deliberately debasing the U.S. Dollar.

Dr. Jerome Corsi, bestselling author of America For Sale and my co-author of Black Gold Stranglehold (and other best-selling books) shows how globalism is undermining America's economic future.

David Bradshaw, editor of Real Money Perspectives, offers his suggested economic solutions based on being prepared for a "Year of Volatility."

2011 Economic Solutions will be in print and online Dec. 30th. Table of Contents.

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