to be implemented upon a global reset of all currencies in latter 2013 (this would include a devaluation of the existing USD) - after a default of all US bonds/treasuries & associated government debts/obligations following a massive rise in interest rates - which is being purposely orchestrated.
This is extremely important to understand. You might be thinking that higher interest rates would impair America's ability to service it's national debt because of the increasing portion needed for interest payments, and you'd be right, but that is not what should cause you the most concern. Nonetheless, let's first explore these numbers anyhow.
Interest Expense Fiscal Year End Totals2012 $359,796,008,919.49
2011 $454,393,280,417.03
2010 $413,954,825,362.17
2009 $383,071,060,815.42
2008 $451,154,049,950.63
*As of May, 2013, Total Interest-bearing Debt rate is 2.468 %.
(Note: the Federal Reserve can't lower interest rates any further, as it currently 'loans' money to Authorized Participants/Fed member banks at ZERO %, so they can turn around & park it back at the Fed for 2%).
Interest Expense Fiscal Year 2013 May $24,378,480,861.09
April $35,951,751,963.63
March $23,472,400,737.30
February $16,901,310,565.17
January $17,816,590,831.57
December $95,736,594,801.52
November $25,068,968,472.99
October $12,922,741,407.27
Fiscal Year Total $252,248,839,640.54
2013 projection ~$350,000,000,000.
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Now with the above data you might say "So what! In fact the interest payments have went down the last year or two." Well, that's because interest rates on government debt have been increasingly lowered from an already historic low average of ~5% before the crisis of 2008 to where it is now hovering below ~2.5%. This was done in order to accommodate the ability to service existing government debt while the incoming tax revenue stream has fallen and government spending levels have risen causing increasing financial deficits. The idea is to bring about as much government and private debt as possible before crashing the global financial & monetary system.
So now to the heart of the matter. In order to bring on a global financial/credit liquidity/monetary crisis, they need to pop the derivative bubble estimated to be well over a quadrillion (that's over 1,000 trillion) by some analysts. At any rate, the BIS (Bank of International Settlements) has stated that there are over 440 trillion in derivatives keyed directly to interest rates. By comparison, global GDP is only around 65 trillion at best. What will set off the derivative time-bomb is an accelerating rise in interest rates on government bonds, primarily in the USA and the EU, and that will quickly induce rising interest rates in everything else, besides. At the end of the day, most derivatives are nothing more than speculative bets based on interest rates. When interest rates get too high too quickly, a systemic financial implosion will begin, thus drying up or freezing up all credit markets causing the whole banking/monetary system to come to an absolute standstill.
Right now the yield curve on US bonds is starting to rise and the 10-year note has went up over 60% in just several weeks - approximately 1.65% in latter April to around 2.6% at present. Apparently, the 30% rise at which the yield rate on the 10-year bond broke above it's 50dma (50-day moving average) was the highest since 1962! Also, China just had a recent massive jump in interbank lending rates from 5.329% to over 6.9% between Tuesday and Friday of last week.
These are ominous clues as to what is forthcoming. If this trend continues, massive damage will begin to occur to those financial institutions holding the wrong side of the bet on those derivative time-bombs making them insolvent overnight. When too many of these, or certain crucial banks go bust, an unstoppable wave of financial destruction will sweep across the globe. In the aftermath, a complete world-wide recalibration of key currencies and a globally financial/monetary restructuring will ensue. To restore confidence to the banking system as well as rebalance and centralize power even more, I believe gold will play a large role as it necessarily reverts to becoming a Tier-1 asset on the books of the remaining few banks which were chosen beforehand to survive.
Disclaimer: I am not providing any financial advice to anyone nor should it be construed as such. I am not a government accredited financial planner or advisor, nor may I be considered qualified by any government or government-endorsed agency to give financial advise of any kind. These are only my personal opinions which I have expressed based on my own personal knowledge which may or may not be considered accurate or even true. It is solely the responsibility of each individual to diligently verify all the information provided within, and he or she should not engage in any actions based on such information. All preceding comments and information contained and provided herein by the individual/poster known herein as Hunter are to be deemed strictly for entertainment purposes only and are not a solicitation of any kind.