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The Year America Lost Its Global Economic Mojo

Tuesday, April 21, 2015 6:14
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(Before It's News)

This article is sponsored by one of our valued partners, Birch Gold Group.

2015 is the year America lost its economic mojo to China.

In other words, America has lost the leadership role in the world it held since the end of World War II. A primary cause of the early twentieth-century global conflicts was competitive currency devaluation in order to make a nation’s exports more competitive.

For this reason, the world sought to insulate itself from these currency wars by installing the U.S. Dollar as the main trading and global reserve currency. The Bretton-Woods agreement in the 1940s set this pathway in motion.

The system worked well for several decades until the United States lost its fiscal and monetary discipline. In the early 1970s, Nixon took the dollar off the gold standard. That was the beginning of the end.

It’s taken a while, but we are now seeing the consequences of our profligate spending and unrestrained expansion of our money supply.

The problem with economic weakness is that it leads to military weakness and a loss of global influence. This phenomenon is happening today as China establishes the Asian Infrastructure Investment Bank, or AIIB. This entity will directly compete with the World Bank, which has operated out of Washington for decades as an American financial hegemon.

What’s wrong with this picture you ask? Along with our loss of financial influence, the U.S. Dollar will also lose its role in the world financial system, to be eventually replaced by the Chinese yuan.

As the dollar becomes less important, there will be less demand to own the currency. This will cause more volatility in the value of the dollar. Combine this with our massive federal debt, and the picture is not pretty.

In a recent note to its clients, Birch Gold Group, one of the nation’s top dealers of precious metals, wrote: “China’s rise in power has been well documented, and appears to be only growing stronger as more and more nations turn their back on the U.S. dollar.

“What’s the latest move away from the U.S. as global economic superpower? Despite serious disapproval from Washington, many of America’s allies are joining China’s proposed new financial institution, the Asian Infrastructure Investment Bank (AIIB). This includes our closest of allies, including England and Israel.

As America loses its ability to shape the world’s financial system, we will lose the ability to help our allies, maintain transparency, and prevent the financing of criminal or terrorist enterprises. In short, the loss of financial power equals a possible loss of national and economic security.

The situation is growing so dire that even some of the most knowledgeable and influential insiders in Washington are raising alarm. This includes former Treasury Secretary Larry Summers, who recently demanded that Washington “wake up” to the new economic era.

In the article published on its website, Birch Gold adds: “Summers argues that institutions such as the AIIB are rising because the U.S. has increasingly and stubbornly refused to cede power within the International Monetary Fund (IMF) to other nations. Another attraction for many nations is that, unlike at the World Bank and IMF, powerful nations like the UK, China and U.S. are not given veto powers. This ensures a level playing field.

“A level playing field on the global stage is not something the U.S. is accustomed to. Without veto powers, the U.S. is like Dorothy from the Wizard of Oz without her ruby slippers; although in the case of the AIIB, Dorothy is not even in Neverland, let alone wearing her slippers!

If America stays on the path of financial irresponsibility and refuses to provide fundamental stability to the currency and its future valuation, we will continue to lose our ability to shape a better world for our citizens. We will open ourselves up to threats from other nations, economic or otherwise. China, Russia, and other adversaries will take advantage of our weakness and further mold the world into a much more dangerous place.

This scenario will not end well.

The one thing you can do to protect your family’s future from what may come is to diversify your savings out of the dollar, and into hard assets that have real, tangible value – things like oil, real estate, and, of course, precious metals such as gold and silver.

Indeed, this scenario will not end well for the United States as a nation. But with this warning, you have an opportunity to take action. Don’t miss your chance.

As the U.S. dollar loses its power on the global stage, Birch Gold Group helps Americans move their savings into physical precious metals. Join the thousands of people who have already taken action. To learn how you too can secure your family’s future, request a free Info Kit on Gold from Birch Gold today – there is ZERO cost and ZERO obligation to you. All you need to do is enter your details at www.birchgold.com.

This post originally appeared on Western Journalism – Equipping You With The Truth



Source: http://www.westernjournalism.com/the-year-america-lost-its-global-economic-mojo/

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