The Beginning of the End?

There will be no asteroid, no fire from the sky or seas boiling. No nothing biblical will happen on 2012 December 21. Instead things will start out small and build up to a climactic changing of the world as we know it or in other words the end of one age and the beginning of another.

As I just stated things will start out small. Money being the back bone of the worlds trade will start to wain, more specifically the USD. Why or how? Well it all goes back to the good old interest on what you owe. As you may or may not know the USD is base upon a system of the government needs cash and asks for a loan from the federal reserve telling them we will give you back more than you gave us or interest. The problem is how will you get the money to pay them back if you keep spending is all, so they ask for a loan to be able to pay of the larger loan and cover what they spent, so even a larger loan!?

Well you may think this is not just crazy, but well how did we last this long doing this or how long have we be doing this. Since 1913 when the federal reserve was reestablished. By doing this the US government was essentially given unlimited funds to rev up to WWI. This all may sound like a conspiracy theory, well lets not focus on conspiracies and focus on what we do know. The real reason why the USD has been able to keep up is because it has become digitized or in lay-mans terms 97% of all currency in the USA exists only on computers while only 3% exist in physical form.

After running the numbers, both economists and mathematicians have concluded that the USD will become unsustainable around 2011-2013 when the loan devices growth has become exponential beyond control even if 99.9% becomes digitized. Think why does everyone want you to use your debt card instead of real cash? Remember those commercials that had everyone using their card like a well oiled machine and the one person who uses cash is looked down upon?

Fine so this happens, think everyone will go crazy? Nope, wrong again people will adapt and change to fit the changing conditions however banks, money and trade online will most likely disappear and large cities will have to depopulate because of they will be unable to sustain themselves with food. Most industries will all so leave the market due to lack of funding and need. All this and more to come will not happen overnight but will take many years and more likely decades to unfold. Till next time enjoy the world now for it will not last.