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Central Planners and the Destruction of the USD
What many citizens and investors overlook is that the US economy has been, and will continue to be, under the control of central planners at the expense of the free market.
The purchasing power of the US dollar, since 1914, has lost 96% of its value. This has all occured under the control of the monetary policy of the Federal Reserve. The stated mission of these central planners was to preserve the value of the dollar. Obviously, this is exactly the opposite of what occurred. Without inflation, our economy as we know it ends and the US would be forced to announce bankruptcy.
When Nixon took the USD off the gold standard in 1971, $0.4 trillion in national debt existed. Debt has since exploded to almost $16 trillion. It was after central planners took control of fiscal policy that we all witnessed exponential growth in government debt.
Galland's point is that the economic model, which allowed the United States to rise out of abject poverty, has been tossed aside. It has been tossed aside in favor of a model that has proven time and again to be fundamentally flawed and always doomed to fail. He argues that the consequences of having central planners controlling monetary and fiscal policy have created a ticking time bomb set to explode.
Galland urges investors to diversify their portfolios and skew toward things tangible.
He quoted himself in a recent email to his editor,
"The sovereigns owe a lot of money that they can't repay. As they try to roll over their existing debts and have to borrow more, the lenders – if any can be found – will want higher and eventually unaffordable interest rates. When the lenders dry up, the only solution will be for the central bankers to monetize, but the world will be watching closely, so this will likely trigger a death spiral in the fiat currencies."
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