Economically worldwide things are developing as I stated in my article two years ago. Virtually every nation is bankrupt, has resorted to printing money to lower the value of their currency with a resultant currency war. They all have huge debts, failing economies, and centralized control by Fed-like organizations. They are now trying, with Russian and Chinese help, to destroy the dollar as becoming valueless by setting up their own currency as the medium of exchange rather than the dollar. The only ones who do not know this are the people in the USA, who are being kept in the dark. If it became known that the USA cannot pay it debts, there would be panic. So my guess is that everyone in the media has gone along with the government warnings not to say anything that would create a panic and a run on the banks, which would create worldwide chaos. Unfortunately, there is no way out of the buying and spending that cannot be repaid. The money has been committed or spent.
You cannot pay off an 18-25 trillion dollar debt (soon to be) with 3 trillion dollars in tax revenue, much of which is already committed to entitlement programs. In simple terms, that is like having $3 to your name and owing nearly $20. How do you pay that off? Will the lender give you any more money? Not a chance. If you are a central planner, you will tax the rich or take it from someone else, but there is not enough to pay the debt. So, where does that leave you? Imagine reading this in a newspaper.
Likewise China and Russia are in huge debt and are printing money also. The Chinese are in a terrible spot having built massive cities that are virtually unoccupied. They consumed raw materials to build those cities, which produced only temporary work. But the debts on those huge construction projects have to be paid. It was all done with "cronyism" for those who had an "in" with the government. That is how the Chinese economy works. They used money from the people to do it. The numbers from the USA and Chinese economy are false and are propaganda to support the government and prevent panic. The Chinese growth rate is not the 7% they claim, and the USA unemployment figures are a deception. Sixty-three million people are out of work in the workforce in the USA. James Rickards has the best chapter on China that I have read in his book, Currency Wars: The Making of the Next Global Crisis.
Both China and Russia are accumulating huge amounts of gold to support their new currency. There is some question that there is even any gold in Fort Knox. There has been no accounting of that allowed as far as I have read. Americans do not read about that either.
When the collapse will happen is unknown. But, I am reading more about it every day as the idea is spreading. Some say 6 months, others longer. However, it appears to be a certainty.
Written by Dr. Jim Ausman
James I. Ausman, MD, PhD, is Professor of Neurosurgery at the University of Southern California in Los angeles (UCLA); Editor-in-Chief of Surgical Neurology International (SNI); President, Future Healthcare Strategies; Chairman of the Board, The Waymaster Corporation Productions' and Creator, Executive Producer, THE LEADING GEN® TV Series. Dr. Ausman travels to all parts of the world teaching and lecturing.
This article may be cited as: Ausman, JI. The Currency War with Russia and China. HaciendaPublishing.com. April 11, 2015. Available from: http://www.haciendapub.com/articles/currency-war-russia-and-china-james-i-ausman-md-phd