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Message Subject Peter Schiff. the FED is promoting INFLATION!!!!!
Poster Handle Anonymous Coward
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WARNING! What ever they say, the opposite is what to expect!

If they are promoting Inflation, expect deflation.

They want to sucker people into massive quantities of metals before they pull the rug out!


What "rug" are they going to pull out.

Feel free to elaborate.


We will see a repeat of history except that the U.S. dollar will no longer be king. They will implement the world currency as planned back then and them a set price for gold will be established to prevent it's rise. Currency exchange rates will be locked into a narrow band.

[link to en.wikipedia.org]

Fixed exchange rates
The rules of Bretton Woods, set forth in the articles of agreement of the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), provided for a system of fixed exchange rates. The rules further sought to encourage an open system by committing members to the convertibility of their respective currencies into other currencies and to free trade.

What emerged was the "pegged rate" currency regime. Members were required to establish a parity of their national currencies in terms of gold (a "peg") and to maintain exchange rates within plus or minus 1% of parity (a "band") by intervening in their foreign exchange markets (that is, buying or selling foreign money).

In theory the reserve currency would be the bancor (a World Currency Unit that was never implemented), suggested by John Maynard Keynes; however, the United States objected and their request was granted, making the "reserve currency" the U.S. dollar.

This meant that other countries would peg their currencies to the U.S. dollar, and—once convertibility was restored—would buy and sell U.S. dollars to keep market exchange rates within plus or minus 1% of parity. Thus, the U.S. dollar took over the role that gold had played under the gold standard in the international financial system. (Rogue Nation, 2003, Clyde Prestowitz)

Meanwhile, to bolster faith in the dollar, the U.S. agreed separately to link the dollar to gold at the rate of $35 per ounce of gold. At this rate, foreign governments and central banks were able to exchange dollars for gold. Bretton Woods established a system of payments based on the dollar, in which all currencies were defined in relation to the dollar, itself convertible into gold, and above all, "as good as gold". The U.S. currency was now effectively the world currency, the standard to which every other currency was pegged. As the world's key currency, most international transactions were denominated in US dollars.
 Quoting: Know it all's better half


That is a good synopsis but it doesn't address the real problem. The real problem is that global trade blossomed during the mid 1800's to the late 1800's based on bills of credit that matured into gold. This fostered a stable international trade and the bills of credit appreciated, maturing into gold at the term of the bill. Using this method of appreciation, usually 90 days, labor could be paid upon maturation of the bill.

However, the banks wanted an elastic currency that they could inflate to their advantage thus their attempts to establish a central bank in every country and establish legal tender laws in each country that mandated use of their fiat currency. What this did was set a depreciating bill of credit since that bill is now based on debt, the value of which over maturation depreciates.
 
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