Desperate Measures

Of course, the US government is aware that it is hovering near the edge of such potential disasters. You can rest assured that the politicians in Washington are already busy coming up with ways in which they can save the dollar so that they can hang on to their precious jobs for at least a little while longer. The problem is that invariably the solutions that they come up with will not have your own best interests at heart. Instead, they will be designed to serve the best interests of government.
Basically, the government is faced with a very simple decision. It must either develop new sources of revenue or default. The second oPMion is highly unlikely for the reasons that I have already described. Still, the US government may consider implementing what would amount to a partial default on its outstanding debt. The government would continue to pay the interest on such debt, but would grant itself an extension of its own choosing. In other words, those who have invested in US government securities would have to wait an extra ten, twenty or even thirty years before they would see their capital again.
Such actions would be brought into play with all of the necessary fanfare to sell them to the public. Maybe the extension would be said to be necessary to combat some evil and distant empire, purposes that Iraq and Libya have conveniently served in the past. Perhaps the spread of Islam will be sighted as a threat that must be stopped, or that perennial favorite, the war on drugs, could be used again to usurp yet more of your basic rights. By employing such means, the government ensures that even when it decides to steal money that belongs to the public, most will be willingly led to the slaughter. The vast majority of people today would rather simply believe the political rhetoric dished out to them than have to actually start thinking for themselves.
The only thing that will save such hapless lambs is if Uncle Sam realizes that even this partial default is not in his own best interest. Such tactics could easily cause the US currency to take a serious plunge in value. Hence, unless the US financial situation becomes even more precarious, it seems that Uncle Sam will continue with his preferred oPMion, that of finding additional sources of revenue. For the most part this has taken the form of pulling yet more money out of the pockets of the populace. This is often accomplished by means of political smoke and mirrors, meaning that while the words uttered by politicians speak of lower taxes, their actions go to ever greater lengths to separate you from your money.
To date, this approach has made use of an ever increasing amount of legislation designed to monitor your every financial affair. As detailed in the following part of this Report, it is almost impossible in this modem age for an American to invest his money anywhere without first informing Uncle Sam of his decision. All bank accounts and investments in the US arc held wide open for government scrutiny. Similarly, the government demands that it be informed of the import or export of any significant amount of funds. It seems that it is only fear of the possible economic consequences that has kePM the US from instituting full fledged exchange controls. That is, at least for the moment. Once Uncle Sam finds himself in an even more desperate situation, there is no telling what he may get up to.