|
The mark of intelligence is the ability to change
one's mind if facts demand it. I think I am intelligent, and what I am
about to write, will outrage a lot of you, but I have given this a lot
of thought, and as a result believe it to be true. Is the dollar a
stable paper money? No, because it is being printed endlessly, and as
Stott's law states, "The more of anything there is, the less they will
be worth." Obviously, this means not just dollars, but virtually
everything. The more tomatoes there are in summer, the less they will
sell for, because they are plentiful, and of course, the more dollars
there are, the less they will buy, meaning they are constantly worth
less. But collapse means they are worth nothing, and I don't think this
will happen. Why?
There are according to Ted Butler, $50 trillion
worth of bonds, and $40 trillion worth of paper money in the world
today, and getting higher all the time. When the last major currency
went to zero, or at least the one we all use as a reference, it was in
1924, with German Reichsmark. Why did it go to zero? Because, as is
current with the dollar today, they printed it endlessly to pay their
bills. The bills consisted of reparations for the damage they had done
in WW I. While the Germans were printing like mad, other nations
weren't. During the Revolutionary War, young America did the same, and
the continental paper currency became worthless, and the phrase, "Not
worth a continental," came into existence. During the War Between the
States, the North and South both did the same, and both currencies
became utterly worthless. No arguments there either.
 (Editor's Note: A 20
million Reichsmark bill issued during the 1923 hyper-inflation. During
this period paper money was not counted but weighed - e.g. two
wheel-barrels of paper bills for a pack of cigarettes)
Today, we live in a world which has instant
communications. No secrets can be kept any longer, and what goes on in
the world of economics especially, is almost instant
knowledge…everywhere. The next fact I wish to bring to the surface, is
that there is not a single currency in the entire world which is backed
by anything. The euro is supposedly backed 15% by gold, but I don't
believe it. When currencies went to zero in the past, there were always
other currencies which were backed by gold and silver. In our own
history, when our three currencies went to zero, the world still had a
lot of currencies which were backed by gold. We were isolated,
communications wise, and when ours went to zero, the world continued to
live on as if nothing had happened. When the Reichsmark went to zero,
the Germans suffered mightily, but the rest of the world continued on
undisturbed.
Since everyone is printing, and I do mean
EVERYONE, it follows that all around the world, inflation exists. Some
nations may have more inflation, and some will have less, but all
national governments spend far more than they take in, and all use the
printing press to pay their bills. This means that prices of
everything, will always go up in any currency…without end probably. All
currencies are being printed at the whim of their respective
governments, so all prices in those currencies will go up. Inflation
will be more severe in some places, and less so in others. The
inflation in the U.S. will probably be more severe because of the
stupid war in Iraq and Afghanistan, plus endless governmental waste and
perpetual handouts to the undeserving.
Does this mean that one shouldn't protect one
self by getting out of dollars and into a different denomination, such
as ounces of gold or silver? Absolutely not. How about speculating in
different currencies? That is gambling, and most gamblers lose. Isn't
getting gold and silver a gamble also? Not really, and for one simple
reason. Pieces of paper with ink on them, are only as good as the
issuer of that paper, be it Enron, a real estate deed, car title, or
paper money. Gold and silver depend on no government, no law, no
economic conditions, or wars. Gold and silver are not dependent on
politics, or which political party is in office. They stand alone, all
by themselves, with no dependence on anyone, or any condition.
Why then, don't I think the dollar will collapse?
First of all, it already has collapsed by 98%, in the last 75 years,
but, haven't the other currencies done the same, more or less? I think
so! "If all you have is a hammer, everything looks like a nail." "If
all you have are bills, payments always look like a printing press."
Has there ever been a government which spent what it took in, and not a
farthing more? Has there ever been a government which never borrowed
from its citizens, or from whoever would loan? Nope. Has there ever
been a government that was fiscally sane? Nope. So they all print, and
all prices go up at the same rate as they print. The dollar n umbers,
according to one wag is increasing by 14% a year. Will one of them
eventually fail? Maybe a minor one, such as in Zimbabwe, but not the
dollar, euro, pound, ruble, peso, or the like….in my opinion anyway.
The percussive boom of the D.C. trumpets, in the form of White House
press releases, news conferences, Congressional utterances, and the
like, all covered in detail by C-Span, Fox, NBC, et all, make
interesting music….to some. I consider it all dissonance, lies, and
froth. But all governments are doing the same! If we were the only
nation going awry with the incessant drum roll of constantly increasing
currency supplies, frosted with all sorts of government lies which make
bad things appear OK, the dollar might go to zero. But all nations are
clattering the airwaves with their propaganda, and glittering lies
about how wonderful everything is, but in reality aren't.
For goodness sake, do not save in dollars, do not
buy whole life insurance policies, and do not buy annuities. They are a
guaranteed loss. Nothing has changed, except everyone is doing it. When
everyone is doing it, the merry go round may continue ad infinitum, or
as long as the sheeple believe. And believe they do! If they didn't
believe, there wouldn't be $50 trillion in bonds out there in all
nations. A bond is a belief in a currency. If $50 trillion in believers
are out there, they may be fools, but that figure is at least a bit of
a hint that it isn't all going to come down in a gigantic dollar heap.
There doesn't seem to be any limit on the babble, lies, and trash which
governments can release in order to keep the suckers happy and content.
The fools are everywhere. They believe the claptrap their various Pooh
Bahs spout forth, which the media promptly publicize. As long as they
believe, their currencies, at least the major ones, won't go to zero.
Just close to it, and the process will continue.
Save in dollars? Trust dollars? Absolutely not.
Think that the dollar's total collapse is just around the corner? Not
me…any longer anyway. Look fellas, 95% of Americans live in the same
type of house, drive the same types of cars, watch commercial TV, eat
at McDonalds, and the list is endless as to how much they are all
alike. They all trust and have faith in the dollar too. They save in
dollars, open savings accounts and buy CDs in dollars. $40 trillion in
currencies and $50 trillion in bonds, means quite simply that this
paper money, and paper everything else, is not about to go the way of
all flesh any time soon. Just continually degrade and self debase.
All prices will continue to rise everywhere. All
currency presses in every nation will continue to hum, and turn out
basically worthless scrip which EVERYONE ACCEPTS. That fact means that
the process will continue. It is dishonest, fraudulent, and packed full
of lies and deceit, but haven't governments always acted like that? Did
Roosevelt, Churchill, Hitler, or Stalin tell the truth in WWII? Have
any governments ever told their citizens the truth about the value of
their money and their 'balanced budgets?' Currently, the large majority
of Americans think Iraq is hopeless and want troops to come home, but
the politicos just voted $140 billion in scrip to keep them there for a
couple more months. Truth is non-existent in national governments
around the world, and most of their citizens eat up the lies as if they
were prime rib. The readers of this know it is a fraud of the most
gigantic proportions, but we are in the minority. We are smart and
protect ourselves. We try to convince others of the utter futility of
saving in dollars, but as is usual, they won't listen. As long as we
are in the microscopic minority, we can protect ourselves at a
reasonable cost…in dollars or whatever currency is in use. When a
couple percent of the populace wises up, our protection will go up.
There is a finite supply of gold and silver, but there is no shortage
of trees with which to make paper, with which to turn out bogus
dollars. So…protect yourself.
|
