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Offline Flyin6

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The Coming Death of the Dollar
« on: February 28, 2015, 10:01:13 AM »
The Coming Death of the Dollar
By Steve Sjuggerud, editor, True Wealth

 "The Federal Reserve believes that it is managing a reversible process? [but] it is mistaken."

 More than anyone I know, Jim Rickards has thought about what the death of the dollar might look like.

 Jim literally wrote the book on it? called The Death of Money: The coming collapse of the international monetary system.

 Inside, Jim explains (with more thought and detail than anyone before him) exactly how the U.S. dollar could ultimately collapse, and what that collapse will look like.

 It all starts innocently enough, with what I've been calling the Bernanke Asset Bubble?

The Bernanke Asset Bubble began when the Federal Reserve cut interest rates to zero and started printing trillions of dollars to prop up the U.S. economy and prevent prices from falling (deflation).

 "The fact that central banks are pursuing inflation [by printing money], and cannot achieve it, is a gauge of the persistence of the underlying deflation," Rickards says.

 The Fed "believes that deflation can turn into inflation," Rickards explains in his book. But it's a delicate balance ? and this is where the trouble can start: "Money printing in the cause of defeating deflation may result in a loss of confidence in the fiat currency system."

 Once the confidence is lost, Rickards explains, "there is no way to reconstitute it; an entirely new system must rise in its place? Very likely, a new system will be needed, with a new foundation that can engender confidence."

 What path will the demise of the dollar take?

 Rickards says "the dollar's demise will take one of three paths"?

1.World money
2. A gold standard
3.Social disorder
 Let's look at each of these scenarios?

1. World money

 A process of creating a "world money" is already underway?

The money is called SDRs ? or "special drawing rights" ? and it's created and administered by the IMF ? the International Monetary Fund. Rickards explains how SDRs could take over, and that the dollar's weight in the SDR "will be reduced in favor of the Chinese yuan."

 Rickards suggests that this switch toward SDRs might not be gradual. It could "play out in a matter of months, light-speed by the standards of the international monetary system" in the next crisis.

 In his book, Rickards highlights the dangers of this scenario, where much of people's retirement savings could be wiped out.

2. A return to a gold standard

 A return to a gold standard "could arise from extreme inflation, where gold is needed to restore confidence? or extreme deflation, where gold is revalued by governments to raise the general price level."

 In either case, the price of gold would be much higher than it is today.

3. Social disorder

 Reading this section of his book was fairly scary. Rickards says that "social disintegration is not predictable," but "the official response is."

 In short, expect government oppression? As Rickards says, "order comes before liberty or justice."
Site owner    IS 6:8  Psalm 91 
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Offline cudakidd53

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Re: The Coming Death of the Dollar
« Reply #1 on: February 28, 2015, 12:24:06 PM »
Gold and Silver are STILL on sale!  Of course I'm sure there will be a price drop again, as soon as my Personal IRA is funded and I actually make a sizable purchase.......seems to play that way when I buy!   >:(  (audible laughter)
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"When you're dead, you don't know you're dead. Hence, dealing with this fact is not difficult. It is only hard for those still living around you.....It's the same when you're stupid."

Offline Flyin6

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Re: The Coming Death of the Dollar
« Reply #2 on: February 28, 2015, 05:20:33 PM »
I'm buying a chunk of silver come Monday and maybe 50 lbs of copper too
Site owner    IS 6:8  Psalm 91 
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Offline cudakidd53

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Re: The Coming Death of the Dollar
« Reply #3 on: March 01, 2015, 08:01:48 AM »
In what form on the copper- what I've seen (JM Bullion) are stamped rounds at roughly twice the current melt price on copper, so haven't even considered it.  What about copper water line instead- at least serves multiple purpose?
2012 Silverado LTZ - Duramax
Christian since 1975 - Field Trial Brittanys - NRA Lifetime Member

"When you're dead, you don't know you're dead. Hence, dealing with this fact is not difficult. It is only hard for those still living around you.....It's the same when you're stupid."

Offline Flyin6

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Re: The Coming Death of the Dollar
« Reply #4 on: March 01, 2015, 08:39:28 AM »
In what form on the copper- what I've seen (JM Bullion) are stamped rounds at roughly twice the current melt price on copper, so haven't even considered it.  What about copper water line instead- at least serves multiple purpose?
You know, I hadn't looked at the price vs melt. Thought it was close like AU and silver...

Skip the copper idea...
Site owner    IS 6:8  Psalm 91 
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