There is this guy, an investment adviser named Porter Stansberry. He has been all over the airwaves and web for weeks promoting a video he made called “End of America.”
The radio ad, which seems like it is playing constantly, tells how this wealthy American is making a prediction that a single event could change America forever and it might happen this year!!
Being a sucker for doomsday prophets, I watched the lengthy video. My first take on it was that for such wealthy American, the production values on the video were horrible. That said, rather than initiating laughter, his doomsday scenario sparked some thought on my part. For the “event” he is predicting is a real possibility, even this year. And if it happens, the ramifications would be, if not doomsday, very serious for the American way of life.
Now his prediction is not an asteroid, or a terrorist attack, but something much scarier.
He predicts that the US dollar may lose its status as the reserve currency this year. And if it does, watch out.
Stansberry states that most people do not understand how much of our way of life is pegged to the quirk of history that made the US dollar the reserve currency for the last 50 years. If we were to lose this status, almost everything would become more expensive, inflation would skyrocket, and our economy would completely collapse.
No one can really know all the ramifications of such a sea change as losing reserve currency status, but doomsday or not–it would be real real bad.
Why am I mentioning this now? This is what greeted me on Drudge this morning.
What can seen in this snapshot is Porter Stansberry’s ad up top, and the headline signaling the doom he predicts below.
NEW YORK (CNNMoney) — The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency.
The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.
SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs
While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.
The reason other countries want an alternative to the greenback as a reserve currency, the currency that most international transactions occur in, is because of the rapid devaluing of our dollar by this administration.
To cover for the record spending and consequent borrowing, the US has been printing money like mad and monetizing our own debt. This forces the value of the dollar down, down, down.
This is a real concern not only for the inflation it is certainly destined to produce, but because other countries are getting worthless printed dollars for the real money they lent us. If the world flees the dollar as a reserve currency, commodities of all kinds, especially oil, would skyrocket. And US inflation would likely skyrocket. And our economy would be pushed to the brink, if not over it.
The only way to avert this disaster is with real fiscal discipline, and sadly that does not seem to exist on either side of the aisle. While Democrats want to spend and borrow even more, Republicans argue over whether to cut $32 or $100 billion out of $1,400,000,000,000.00 deficit. So the best case scenario is a $1,300,000,000,000.00 deficit. More and more debt. More printing money. More monetizing the debt.
Perhaps a real doomsday approaches for America, and we have no one to blame but ourselves.