No Way Out: A Fifty Percent Dollar Devaluation | |
Mack User ID: 7367 United States 01/13/2007 10:15 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 173412 United States 01/13/2007 11:10 PM Report Abusive Post Report Copyright Violation | >>Thus, if we suddenly hand several hundred thousand dollars to each and every household, a dollar will become worth 50 cents in real terms, but in debt terms, it will still be worth a dollar, and folks will have more of them. Didn't bush already do that? |
Anonymous Coward User ID: 181662 Canada 01/13/2007 11:43 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 175134 Mexico 01/14/2007 12:10 AM Report Abusive Post Report Copyright Violation | |
Dr. Au fait User ID: 163242 United States 01/14/2007 08:57 AM Report Abusive Post Report Copyright Violation | |
Shadow User ID: 167681 Canada 01/14/2007 09:52 AM Report Abusive Post Report Copyright Violation | I don't think the US's creditors would be too happy to have the value of their investments halved. And I seriously doubt there is enough unencumbered gold to back a new currency [link to www.gata.org] . But the banks sure are pushing the debt on people, it's unreal the amount of money available for the asking. Thanks OP good article. Over the side and damn the barracuda |
F.B. Nyte User ID: 144284 United States 01/14/2007 09:59 AM Report Abusive Post Report Copyright Violation | If the dollar reaches down as far as 75 it will begin to recover and return to the neighborhood of the mid 90's in about a year. Quoting: MackMy best chart ever!!!! [link to www.freeimagehosting.net] |
Anonymous Coward User ID: 9217 United States 01/14/2007 10:00 AM Report Abusive Post Report Copyright Violation | |
W199i User ID: 157637 United States 01/14/2007 10:12 AM Report Abusive Post Report Copyright Violation | |
Anonymous Coward (OP) User ID: 65489 United States 01/14/2007 10:20 AM Report Abusive Post Report Copyright Violation | fed reserve notes are something of a magic feather; when we are rid of them people will realize we never needed them in the first place Quoting: W199iJanuary 05, 2007 The World's Reserve Currency by Ron Paul The financial press reported last week that the euro, the new currency created only five years ago and used by most European nations, has supplanted the U.S. dollar as the most widely used form of cash internationally. There are now more Euros in circulation worldwide than dollars. This alone is not necessarily troubling, as the dollar remains the world’s most important reserve currency. About 65% of foreign central bank exchange reserves are still held in dollars, versus only about 25% in euros. And the European Central Bank faces the same inflationary pressures that our own Federal Reserve Bank Governors face, including a growing entitlement burden that threatens economic ruin as both societies age. European politicians want to spend money just as badly as American politicians, and undoubtedly will clamor to inflate-- and thus devalue-- the euro to fund their creaky social welfare systems. Still, the rise of the Euro internationally is another sign that the U.S. dollar is not what it used to be. There is increasing pressure on nations to buy and sell oil in euros, and anecdotal evidence suggests that drug dealers and money launderers now prefer euros to dollars. Historically, the underground cash economy has always sought the most stable and valuable paper currency to conduct business. More importantly, our greatest benefactors for the last twenty years-- Asian central banks-- have lost their appetite for holding U.S. dollars. China, Japan, and Asia in general have been happy to hold U.S. debt instruments in recent decades, but they will not prop up our spending habits forever. Foreign central banks understand that American leaders do not have the discipline to maintain a stable currency. When the rest of the world finally abandons the dollar as the global reserve currency, both Congress and American consumers will find borrowing money a more expensive proposition. Remember, America can maintain a large trade deficit only if foreign banks continue to hold large numbers of dollars as their reserve currency. Our entire consumption economy is based on the willingness of foreigners to hold U.S. debt. We face a reordering of the entire world economy if the federal government cannot print, borrow, and spend money at a rate that satisfies its endless appetite for deficit spending. At some point Americans must realize that Congress, and the Federal Reserve system that permits the creation of new money by fiat, are the real culprits in the erosion of your personal savings and buying power. Congress relentlessly spends more than the Treasury collects in taxes each year, which means the U.S. government must either borrow or print money to operate-- both of which cause the value of the dollar to drop. When we borrow a billion dollars every day simply to run the government, and when the Federal Reserve increases the money supply by trillions of dollars in just 15 years, we hardly can expect our dollars to increase in value. Dr. Ron Paul is a Republican Congressman from Texas. |
Anonymous Coward User ID: 169050 United States 01/14/2007 10:21 AM Report Abusive Post Report Copyright Violation | Every moment brings us closer, not farther, from a DOW JONES BLOODBATH. [link to 64.29.208.119] |
me too User ID: 181865 United States 01/14/2007 10:27 AM Report Abusive Post Report Copyright Violation | the fiat-dollar magic show will continue until the snake handlers get bit in the ass by their own stupidity...that point is approaching,,,but first we have to see the grand finale of the show....the Weimar-terminal-hyperinflationary blow off ! Since 1913 we are 94 years into this disgusting display of men and their folly,,,but it has been done so many times before, with the exact same end result....so......nothing is new under the sun..... and what has been, will be again.... me too |
Anonymous Coward User ID: 181709 United States 01/14/2007 10:30 AM Report Abusive Post Report Copyright Violation | |
Anonymous Coward (OP) User ID: 65489 United States 01/14/2007 10:38 AM Report Abusive Post Report Copyright Violation | Quoting: Anonymous Coward 169050 upcoming presidential election and the 2008 beijing olympic games will keep the markets alive for the balance of 2007. 2008 is another story entirely. ps watch for gold and silver fireworks in 2007 as smart money continues to move out of paper and into tangible assets. |
Anonymous Coward User ID: 159906 United States 01/14/2007 10:43 AM Report Abusive Post Report Copyright Violation | >>Thus, if we suddenly hand several hundred thousand dollars to each and every household, a dollar will become worth 50 cents in real terms, but in debt terms, it will still be worth a dollar, and folks will have more of them. Quoting: Anonymous Coward 173412Didn't bush already do that? "folks will have more of them."????? Sorry. I didn't see a penny of it on my paycheck, and I'm not holding out much hope for more. Wages are frozen. This is a pay-cut. |
Anonymous Coward (OP) User ID: 65489 United States 01/14/2007 11:18 AM Report Abusive Post Report Copyright Violation | Banks buying gold, not dollar based financial instruments. Banks ordered 162 tonnes of gold from producers in 2006 MOSCOW. Jan 10 (Interfax) - A total of 42 commercial banks signed contracts to buy 161.9 tonnes of gold from producers in 2006, a source at the Gokhran or precious metals and gemstones repository told Interfax. Not all of the gold will have been delivered by the end of last year, so there could be some discrepancy between the amount of gold ordered and actually received, the source said. A total of 43 commercial banks signed contracts to buy 176.6 tonnes of gold from producers in 2005. Russia produced 168 tonnes of gold in 2005. The Russian Gold Producers' Union has said it expected Russia to produce 165 tonnes of gold in 2006. The Gokhran source said that 18 banks had so far ordered 56.3 tonnes of gold for 2007. "Some banks are already signing contracts for 2011," the source said. Russia's biggest gold buyers are Vneshtorgbank (RTS: VTBR), Sberbank (RTS: SBER), Rosbank, Zenit, UralSib, Gazprombank, Nomos Bank, Soyuz, Expobank, Lanta Bank and Khanty-Mansiisk Bank. pr oil and gold will rocket A senior Iranian officer warned that if the West continues to threaten Iran's economy over its nuclear program, Teheran will discontinue the flow of oil via the Strait of Hormuz, Israel Radio reported Monday. According to the officer, 40% of the world's oil is transferred through the strait, and the world is dependent on Iran for a source of energy and a stable economy. Iran's spiritual leader, Ayatollah Ali Khamenei, added that Iran cannot allow itself to give up the right to develop its nuclear technology program. |
Anonymous Coward User ID: 1294 United States 01/14/2007 11:38 AM Report Abusive Post Report Copyright Violation | the rich make more money in debt schemes like these by first letting the whole thing collapse, resulting in deflation and a scenario where "cash is king" ... after they use all the money they've accumulated to buy up assets for pennies on the dollar, only then do they hyperinflate to get things going again. Good luck! |
Ripped off American User ID: 83027 United States 01/14/2007 11:48 AM Report Abusive Post Report Copyright Violation | |
Eagle # 1 User ID: 176523 United States 01/14/2007 12:00 PM Report Abusive Post Report Copyright Violation | OP's article SAID you would have to make the new 'libery dollar' worth TWO of the present dollars. As I said YEARS ago, one Friday evening, you will hear the following announcement on all TVs and radios..... " As of NEXT Friday, the present dollars in circulation will NO LONGER be acceptable for purchases or debt reduction. You MUST turn in TWO one dollar bills for a SINGLE new Liberty dollar, or they WILL become worthless by next Friday." Therefore, the banksters WILL win again, as you will have only HALF the NEW dollars to pay on your loans/debts, AFTER you obtain the NEW 'funny' money. Isn't that the way they ALWAYS planned it ? Total slavery for the masses, as the FED has reduced your wealth by ONE HALF in a single stroke AND DOUBLED your indebetedness ! THINK about it !!! ANY reason for gold/silver to go UP in price when the NEW currency is backed by same ? DOWN is MORE likely ! Eagle |
Anonymous Coward User ID: 181891 United States 01/14/2007 12:00 PM Report Abusive Post Report Copyright Violation | |
NCCCPC User ID: 158082 United States 01/14/2007 12:00 PM Report Abusive Post Report Copyright Violation | |
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Anonymous Coward User ID: 181912 United States 01/14/2007 12:08 PM Report Abusive Post Report Copyright Violation | Dollar devaluation would require mandated cost-of-living wage increases, but also would require issuance of a brand new currency. Call it the liberty instead of the dollar. If you tied the liberty to gold, the U.S. currency could keep its world reserve status and survive the dollar devaluation tsunami. It would require a liberty to be worth the equivalent of two dollars, where there was only one dollar in circulation before the fifty percent devaluation event. A gold-backed liberty would stabilize inflation, and bring monetary stabilization back, but in a new economic order where debt is substantially reduced, both private and government. Government debt would be reduced as folks are required to pay taxes on the dollar-devaluing household-handout. Of course, this means Gold would have a bright future. I don't see any other way out. Thank Artificial Economics for this -- the economics practiced for the past decade in this nation that wasn't mentioned in your child's college economics textbook. Quoting: Anonymous Coward 65489Maybe instead of the Liberty, they will call it the Amero. |
Future Girl User ID: 176677 United States 01/14/2007 12:13 PM Report Abusive Post Report Copyright Violation | |
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F.B. Nyte User ID: 144284 United States 01/14/2007 02:11 PM Report Abusive Post Report Copyright Violation | US$ index [link to goldseek.com] |
Anonymous Coward User ID: 108210 Canada 01/14/2007 02:20 PM Report Abusive Post Report Copyright Violation | Why do people think gold is something to invest in if a currency collapses.. If im a farmer, and you came to me offering gold for my food, I would laugh.. Gold is meaning-less and as worthless as paper money.. The real value is in a persons skill and ability to work (labour). Ill feed you as a farmer, but fuck your gold and money... Go build me a barn as payment... |
F.B. Nyte User ID: 144284 United States 01/14/2007 02:20 PM Report Abusive Post Report Copyright Violation | |