Tuesday, February 17, 2009

America Has To Come To Grips With The Fact It Is Bankrupt

I recommend you read this entire article (link at bottom), but I've extracted a few key snippets for you below:

Snippets:

...The point of no return was passed in June of 2002, and that is when the issuance of money and credit began to grow seriously. The result is the banking system is already in a state of collapse and the dollar is sure to follow. Looking back at monetary history we know that zero interest rates is pure insanity. The Fed, banking, and Wall Street know this and this helps us to conclude that none of this happed via incompetence or chance, but by deliberate intent.

In the early 1920s the Weimar Republic was hit by hyperinflation that lasted for several years. Germany, in moving into the 1930s, then experienced deflation.

We began deflation five years ago in 2004. That was kept under control with increases in money and credit. The Fed was joined about six months later by most central banks. The vast increases of money and credit continued along with monetization, so we should see the beginnings of hyperinflation soon. That should last at least 2-3 years. That will be followed by deflation and deeper depression. As the trillions in debt is liquidated it will be smothered by the hyperinflation and substantially higher gold and silver prices. The banking system has been broken. The dollar falls next versus other currencies and gold, then all currencies collapse versus gold.

What we are seeing in banking is no solution. The banks have to be purged and allowed to fail. Until that happens there will be no solution. Only a return to a gold standard can regain the confidence and trust of people worldwide. The concept of good and bad banks under present circumstances is ridiculous-moronic. The very concept is mad. Our situation is worse than in the 1930s or in the early 1990s in Scandinavia. The problem under our circumstances is that both banks are bad, because our currency is worthless without gold backing.

If we are correct, and we believe we are, the stimulus package and TARP, plus all the other bailouts are not going to work. This so-called solution is just more of the same, but more of it. When you stop to think of it how can a bankrupt nation with a fiat currency save a banking system that is bankrupt as well? The solution to this is a simple. Back the dollar with gold and set the official price at $2,000 an ounce, although it may be trading at $3,000 in the marketplace. The US Mint would then vastly increase the number of gold coins available for purchase. Of course if the treasury has little or no gold they cannot do this, and the whole system collapses. Otherwise, with gold backing, capital would flow to America. Such a currency would allow nominal interest rates and would draw users and prices would remain stable. Eventually all countries would do likewise, set a world gold standard, and tariffs that suited their circumstances. If a nation was short on gold or had none, they’d have to sell assets to others to accumulate gold.

If the forgoing is not adopted the world will continue to plunge into monetary chaos. Revolutions would take place as starvation and warfare stalked the land. We expect the worst, because no change has taken place in Washington. We have virtually the same purchased and compromised Congress. The President’s new advisors will bring about the same results we have seen over the past eight years. That is the grand push for a world currency and a world government. These are all the same characters along with banking and Wall Street that caused these problems in the first place and supposedly are finding solutions to our dilemma. In finality, if we do not take our government back from these evil, miscreants we are doomed. Your solution, as we have pointed out so often, is to prepare. Get rid of credit card debt. Purchase a water filter, freeze-dried and dehydrated foods, be able to defend your home and family, with extra assets buy gold and silver coins and shares. If you can, still try to save the system from within. If we cannot, you know what the alternative is.

America Has To Come To Grips With The Fact It Is Bankrupt

Hat tip Justin

5 Comments:

At 2/18/2009 8:33 AM, Anonymous Willy2 said...

Return to a gold backed USD will NOT solve the problems. In the 1960s the US-dollar was backed by gold and despite that fact the US kept printing more dollars, in order to pay for the war in Vietnam. And this in turn forced president Nixon to break the link between gold and the USD.

 
At 2/18/2009 11:32 AM, Anonymous Anonymous said...

Willy2,

The gold standard in the 60's wasn't a real gold standard. Only central banks were allowed to exchange dollars for gold, so the US could get away with printing money until a central bank (France) called their bluff. If every person holding dollars could exchange them for gold, the US wouldn't be able to get away with printing money because there would be too many bluff-callers.

What I don't understand is why everyone says we should get out of debt. If the dollar is going to collapse, why not get deeply into debt, buy gold, let the dollar collapse and then pay off the debts with a tiny fraction of the gold?

 
At 2/19/2009 10:45 AM, Blogger Mark Herpel said...

Private digital gold currency and local use currency, per region....this will save communities, not some 'super' government.

Mark
DGC Magazine

 
At 2/19/2009 7:36 PM, Anonymous Next Dimensions said...

Open up the market to competing currencies, such as gold.

Implement a new US Dollar, put into circulation without debt attached. The money's birth comes by spending it into the economy, not lending it into the economy. It should be "spent" into the economy on necessary infrastructure projects.

Debt can come later, after the money is created.

 
At 2/20/2009 6:10 PM, Anonymous jerry said...

Next Dimensions, what you are suggesting, I am assuming, is a debt-free domestic-only currency. Read the following link. This guy is challenging legislators over the need for debt-free money.
His Chris Moore radio interview allows you to listen to his argument.

http://rayuhric.com/

Regarding gold as currency, FDR, once he took office, made it illegal to hold gold, therefore it was worthless as a personal currency. It was a crime to even have it!!

We cannot be guaranteed that such an action would not occur again if we actually fall into a depression.

 

Post a Comment

Links to this post:

Create a Link

<< Home

me