RON PAUL & JIM ROGERS Discuss Truth About GLOBAL ECONOMIC COLLAPSE & The ELITE AGENDA

We frequently hear the financial press refer to the U.S. dollar as the "world's reserve currency," implying that our dollar will always retain its value in an ever shifting world economy. But this is a dangerous and mistaken assumption.

Since August 15, 1971, when President Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold, the U.S. dollar has operated as a pure fiat currency. This means the dollar became an article of faith in the continued stability and might of the U.S. government.

In essence, we declared our insolvency in 1971. Everyone recognized some other monetary system had to be devised in order to bring stability to the markets.

Amazingly, a new system was devised which allowed the U.S. to operate the printing presses for the world reserve currency with no restraints placed on it-- not even a pretense of gold convertibility! Realizing the world was embarking on something new and mind-boggling, elite money managers, with especially strong support from U.S. authorities, struck an agreement with OPEC in the 1970s to price oil in U.S. dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence backed the dollar with oil.

If there's one thing that should be clear, it's that nothing the government or their banking partners have done to solve the economic crisis has been for your benefit. They've enriched themselves, yet again, on the backs of the American people.

Trend forecaster Gerald Celente predicted the collapse of 2008 in remarkable fashion. And now he's warning of a similar crisis to come next year. There's fear and hysteria running through the entire global financial community, because as everybody knows all they did was postpone the inevitable.

A Kremlin aide was quoted on Tuesday as saying that if the United States were to impose sanctions on Russia over Ukraine, Moscow might be forced to drop the dollar as a reserve currency and refuse to pay off any loans to US banks.

Image: U.S. Dollar (Wiki Commons).

Mr Sergei Glazyev, who is often used by the authorities to stake out a hardline stance but does not make policy, was cited by RIA news agency as saying Moscow could recommend that all holders of US treasuries sell them if Washington freezes the US accounts of Russian businesses and individuals.  China just dropped an absolute bombshell, but it was almost entirely ignored by the mainstream media in the United States. The central bank of China has decided that it is "no longer in China's favor to accumulate foreign-exchange reserves". During the third quarter of 2013, China's foreign-exchange reserves were valued at approximately $3.66 trillion.

The mayhem that went on at Walmart when people couldn't cash in their food stamps.

Gold rose to a six-month high on Thursday as fears of economic slowdown in China and lingering worries about Russia's standoff with Ukraine over Crimea dampened demand for riskier assets and boosted bullion's appeal.

U.S. equities and copper pries tumbled after data showed China's economy slowed markedly in the first two months of the year. Worries over China's first bond default and weak export data earlier in the week have also stoked concerns about the health of the world's second-largest economy.

Gold was also underpinned after Russia launched military exercises near its border with Ukraine, showing no sign of backing down in its plans to annex its neighbor's Crimea region.

The deregulation of the financial system during the Clinton and George W. Bush regimes had the predictable result: financial concentration and reckless behavior. A handful of banks grew so large that financial authorities declared them "too big to fail." Removed from market discipline, the banks became wards of the government requiring massive creation of new money by the Federal Reserve in order to support through the policy of Quantitative Easing