I certainly hope not! However, signs extant in Ukraine alone, not to mention other hot spots around the world, make it is obvious, that two major nations have sided with each other. Both are communist, and both have decided they want to rule the world, together or separately. Putin and Xi, are buddies, and will help each other if needed. Either way, there is a distinct possibility of a war. Russia’s Putin said that when the Soviet Union ceased to exist in 1991, it was “One of history’s greatest disasters.” To me and free nations around the world, the demise of the Soviet Union, basically due to total bankruptcy, was one of history’s greatest triumphs!
In most opinions, when Russia massed hundreds of thousands of troops and war regalia, on Ukraine’s border, an invasion wouldn’t have happened, had Donald Trump been President of the United States. Unfortunately, it did happen, and Biden, did nothing to thwart, or in any way discourage Putin; so un-provoked, he invaded an independent nation, in violation of all of the world’s laws. Hitler, in 1939, also unprovoked, invaded an independent nation. Hitler’s actions resulted in World War Two, which caused hundreds of millions of deaths, hundreds of millions of injuries, total bankruptcy of Germany, and economic spoliation world-wide, which costs are impossible to estimate or calculate. China’s Xi, is also threatening to invade Taiwan. The outlook is gloomy, in my opinion.
If the current situation ends in a war, I have no idea how it will end, other than it will be fought with paper money, backed by thin air, and the result will be inflation, and possibly hyper-inflation.
The United States, under several Presidents, has engaged in wars, with Congressional approval, in Korea, Vietnam, and even Iraq. The last war America won, was World War Two, but all of them caused huge debts to be encountered, because wars are not cheap to fight, and interest payments on debts, if they are ever paid, will be satisfied with un-backed, paper, “monopoly” money. Un-backed currencies, or ‘paper money,’ in all wars, cause huge inflation, which is currency debasement, and the citizenry inherits this, with price escalation. Paper money fought the Civil War, and resulted in the paper money on both sides, becoming worthless.
Webster’s New College Dictionary, defines Inflation, as “An increase in the currency supply.”
In the three and a half years America was engaged in World War Two, prices almost exactly doubled. A 21 cent pack of cigarettes, went to 42 cents. A Plymouth, Chevrolet, or Ford, went from $650 to twice that, and even in phone booths, a nickel call went to a dime. Wages doubled to meet the inflation, and those who saved in paper dollar savings accounts or bonds, lost half, in just three and a half years. There are no more phone booths or Plymouths, and few still smoke cigarettes, but the comparison stands with Fords and Chevys. The dollars looked the same, and the dimes, quarters, and halves, were still made of silver, but they bought half as much. The silver coinage, lasted another 18 years, and after 1964, those coins were made of inferior metals, and still are. As obvious proof of inflationary political skullduggery, a silver quarter today, is worth several dollars in U.S. paper money.
Unfortunately, politics being what it is around the world, no nation has ceased issuing and circulating un-backed paper money, calling them “Legal Tenders.” This situation is always caused by elected politicians buying votes, by seeing to it that government handouts continue, which keeps them in office. Both Republican and Democrat votes disburse and deliver, hundreds of benefits from the Federal Reserve, which creates the dollars, per Congressional instructions. In America, before endless handouts, did citizens starve, freeze to death, were illiterate, or fail to transport themselves? The list of handouts is indeed myriad, and continues to increase, with every session of Congress.
If the world is enmeshed in a war, being paid for with the usual paper money, there will be no limit as to how high consumer goods, and all that paper money can buy, will go. To the sky, as the buck already has? At my age, I still vividly remember nickel Hersey bars, nickel White Tower hamburgers, and dime hot dogs. I still remember $1.25 per ounce silver and $250 per ounce gold, when I began this trip, on which I have now trundled down life’s path, for almost 48 years. When this is put up on Monday, will silver exceed $8? We’ll see now, won’t we!
In case of injury, accident, fire, theft, or crime, all of us purchase insurance, as protection against these things. Unfortunately, inflation insurance seems to escape most, even though the logic of such should be obvious, and it is readily available. This insurance, of which I write, requires no monthly payments and it actually increases in value as the years pass, just sitting there! No other insurance does that. It is of course, gold and silver, which the three of us, and on rare occasions, me, provide this insurance at a delivered price of 1% over our wholesale cost. On your computer, we can be reached at ‘coloradogold.com.’ Please have the happiest of new years!
Don Stott -don@coloradogold.com