Dollar Crisis Looms if US Doesn’t Curb Debt !

• It is way past midnight, way too late! The USD crisis is set in stone. The FedRes will continue QE and monetize debts. They have consumed as much as 80% of public debts issued last year. This year will not be any different. Their strategy, despite denials, is to print money out of thin air and hyper-inflate away all the debts. The banksters next move is to own the country.
   
• Foreclosures are at record highs despite Obama’s administration’s help. This means that banks are now left holding massive amount of property and land. At the moment, these assets are way below their book value, anywhere between 10% to 50% of book value. To get out of this, the banksters will hyper-inflate. Within 2 years, these land and properties will rise way above their book value. Voila! The banksters balance sheet will then look pretty good and they will own most of the country. The sheeple are screwed once again!
   
• CNBC reports:
   
  The United States must soon raise taxes or cut government spending to curb its debt, and failure to act will risk a crippling dollar crisis as investor confidence ebbs, a panel of experts said on Wednesday.
    
  “It has got to be done. It will be done some day. It may be done with enormous pain. Or it may be done more rationally,” said Rudolph Penner, a former head of the nonpartisan Congressional Budget office who co-chaired the 24-strong Committee on the Fiscal Future of the United States.
    …..
  The national debt has risen above 50 percent of GDP (gross domestic product) from 40 percent two years ago, and within 20 years will blow past a previous record above 100 percent of GDP set after World War Two without stern official steps.
   
  Mounting debt could sap investor confidence in the economy, and the nation’s ability to honor its obligations, pushing up interest rates and causing a steep fall in the value of the dollar as international creditors seek safer returns elsewhere.
    …..
  At one end of the options, the committee reviewed a policy mix based on low spending and low taxes. This envisaged payroll and income tax rates staying as they are, around 18-19 percent of GDP, but healthcare and retirement program costs sharply curtailed and defense and domestic spending cut 20 percent.
   
  The other end of the scale looked at a high spending/high taxes policy mix that would maintain the projected growth in Social Security and allow higher spending on federal programs. However, this would see taxes rise above 40 percent of GDP, or in the neighborhood of Denmark or Sweden, in order to hold the national debt to 60 percent, unless a value added sales tax was also introduced to augment government revenue.
   
  Between the two were several intermediary solutions relying on a blend of higher taxes and lower spending. The committee made no recommendations but warned there was no time to waste.
   
  “If action is taken soon, the country has a wide choice of options to help achieve fiscal sustainability. All are difficult; but if action is postponed, the options will be fewer and the choices even more difficult,” they said.

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