This Factor Will Accelerate The Collapse Of US Dollar

The collapse of the US dollar continues, and it looks like there is a specific factor that will probably accelerate this downfall. Check out the latest reports about the matter below.

According to the latest reports, it seems that America’s “Fiscal Responsibility Act” will hasten a collapse of the US dollar and force Americans to take the brunt of its fallout, former Congressman Ron Paul reveals.

Paul has released a statement indicating that ordinary citizens will experience the effects of the deal, which entails a two-year suspension of the US government’s debt ceiling, through an inflation tax.

Although it is not the official stance, the ex-Texas Representative is of the opinion that the government’s tendency to increase the money supply is equivalent to having a default policy. This practice can lead to the devaluation of the dollar, which ultimately harms the wages and savings of Americans.

“Of course, this default will be felt by the people in the form of an inflation tax. This inflation tax may be the worst of all taxes, because it is both hidden and regressive. Politicians love to point the finger at greedy corporations, labor unions, and even consumers for increasing prices instead of taking responsibility for the legislation they pass that incentivizes the Federal Reserve to create more inflation.”

Paul contends that the proposed agreement, which he asserts is not related to fiscal responsibility, will have adverse consequences beyond domestic borders.

He predicts that the two-year suspension of the debt ceiling will expedite the loss of US’s world reserve currency status, far earlier than commonly projected.

“The Fiscal Responsibility Act will result in increased government spending, debt, and deficits. It will also further erode the value of the United States Dollar, thus making it more likely that the US dollar will lose its world reserve currency status sooner rather than later.”

Stay tuned for more interesting news about the collapse of the US dollar.