On top of that, the $176 billion deficit for October puts the total reported US deficit for 2009 at a record $1.4 trillion, and te US may reach its legal credit limit of $12.1 trillion in December. The US government is at its credit limit. Before the US can borrow more money, the US congress must approve an increase. What does this mean to you?
Sometimes it is difficult to understand what this all means because experts use strange jargon, words such as "quantitative easing" which means the government is "printing money". It is also difficult for honest people to understand how bankers can print money and collect interest on counterfeit money.
This printing of counterfeit money robs us all, including foreign central banks, because the dollars and bonds we are holding are dropping in value.
The US government is using inflation to steal from its own citizens by devaluing their labor and savings. In other words, the more counterfeit dollars the US prints, the more dollars it takes for you and me to live.
Life is about to get hard for Americans as the world says,"We do not trust your dollar."
If the world's central banks stop buying our bonds and dollars, the US will have to raise interest rates, which will crush the stock market. If higher interest rates do not work, then the US will have to print even more money, possibly leading to a hyperinflationary state, once again stealing from those that work for and save money.
The rich know how to print their own money like the Fed - it's the middle-class that is most affected by the financial crisis.
Bretton Woods Agreement and The US Debt
