Is the Global Economy Runing Towards or Falling Off the Fiscal Cliff?

It Now Only A Matter of Not If, but WHEN We Fall over the Fiscal Cliff.

Here is a Passage from the Federal Reserve Publication which was entitle "Putting it Simply";

When you or I write a check, there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check, there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check it is creating $

In essence, all dollars are backed up by debt. When the Federal Reserve states that they are keeping the interest low until 2014, in which Bernanke stated numerous times, the way they do this is by printing money. Here is the Rule regarding this debt as illustrated by Chris Mortenson,

Every year, new credit (loans) must be made that is at least equal to the amount of all the outstanding interest payments that year. Without a continuous expansion of money supply, past debts would not be able to be paid and defaults would occur and possibly destroy the entire system.

The Fiscal Cliff is the Result of Printing Large Exponential Amounts of Dollars!

In essence, the Fiscal Cliff is the result of getting this country into massive debt. In fact, U.S. is the greatest debtor in the World. U.S. Debt has almost superceded the U.S. Gross Domestic Product (our Revenue) of almost $16 Trillion. In all actuality, the Debt is much greater than that, when you add the unfunded and funded liabilities. The total amount would be to great for the comprehension of the human mind, over $160 Trillion.

John Maynard Keynes intelligently wrote in his book "Economic Consequence of Peace":

Lenin was certainly correct, there is no more positive or subtle or surer means of destroying the existing basis of society than to debauch the currency. By continuing the process of inflation, the government secretly confiscate an important part of the wealth of its citizens. The process engages all the hidden forces of economics on the side of destruction and does it in a manner that not 1 man in a million can diagnose.

Let us talk about Inflation. Inflation, which is an "invincible tax" is not caused by rising prices. Rising prices are a reflection of inflation. Inflation is caused by supply and demand of the dollar. When there are too much dollars chasing after the same goods and services then everything becomes expensive. Remember, whenever the price of gas goes up, it is that the prices of gas are going up, but rather the value of the dollar is going down.

It is only a matter of time, when the incredible GLOBAL debt bubble will burst because it is absolutely impossible for us to sustain the amount of debt that we are now facing. In short, the global economy will default on their loan. Currencies will amount to nothing and your hard earned dollars will be worthless. Remember, it is not a matter of If, but When this will happen. We are in the Debt Bubble.

So the ultimate question is how are you preparing yourself to avoid this inevitable Fiscal Cliff. Are you losing your money through inflation, the invincible tax, because savers are now losers? Or are you preparing yourself like investing your money in your own financial future, financial education.

To learn more on how you can better prepare yourself and to avoid this fiscal cliff, follow these simple steps: 1. Click on: Financial Education is the Key to Avoid the Fiscal Cliff! 2. Enter your Email information. 3. Watch the Free Video that will teach you a 3 step simple formula that will prevent you from falling off this Fiscal Cliff.

If you would like to learn how you can prepare yourself with the right financial education to protect you and your family when this bubble burst, click on the following link Financial Education is the Power?