I wish that I could say that my title was just a little overly dramatic in order to drive traffic to the blog…but it’s not.  The big deal is that China and Russia announced today a change in their monetary policy that directly and negatively impacts the U.S.  However, it’s not China’s and Russia’s fault: it’s the U.S.’s fault because of what we’re doing (specifically, Quantitative Easing [QE]).

Here’s what’s happened: China and Russia are now actively decoupling their currencies from the U.S. because we’re printing money to devalue our national debt in the name of stimulating the economy.  This QE has been tried around the world in the past and it ALWAYS FAILS and ALWAYS DESTROYS the economy.  So China and Russia are stepping away from what has been in the international standard currency (U.S. dollars) in order to keep the U.S. from dragging them down.  But here’s the rub: the U.S.’s QE moves DEPEND on the rest of the world staying coupled with the U.S. dollar.  If other nations decouple, our currency will go into free-fall (i.e., hyper-inflation, extreme price fluctuations, lots of really nasty things and destroy countries and individual lives).

Here’s the article from the International Business Times: China, Russia to dump US dollar for bilateral trade

And for information about what Quantitative Easing is, check out “The Dummy’s Guide to QE2”:

 

So, what do you do to protect yourself against an economic collapse?
– God
– Guns
– Goods
– Gold

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