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Offline Flyin6

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Don's essay on the dollar...
« on: March 07, 2015, 09:27:55 AM »
Is the dollar gaining in value?

The dollar is worthless for the most part. It can still buy you a big mac, but the nation now has more debt than it has actual stuff to back it up. Everything you and I and everyone make no longer adds up to what we owe, so if the dollar is a fraction of what the US is worth, then it is actually a debt note. It represents $1 of debt.

So how can a debt note buy a big mac? Because the federal government says it can. The federal government is broke, really has no n=money at all, but what we do have is a pretty big land mass called the United States. We have lots of military with nuclear bombs, planes and missiles to carry them, air craft carriers, tanks and folks like Bobby who can put a hurtin' on you in a New York minute!
We have power, uncontested power for the most part although we have someone knockin' on the door (China) and a wanna-be (Russia).
China's economy is contracting. It is doing so because the folks here mostly and there are makng less money and therefore spending less, which is driving down manufacturing and inventory which slows down the factories, lays off workers and so forth.
Almost every nation on earth (Switzerland is a notable exception) is in debt up to it's bloated eyeballs. Mostly because of looming social issues and laziness. The social instrument is cutting away at everything good in productive the world over and creating the need for more and more cash all taxed from a dwindling working, well, "taxable" class of folks like you and I.
So everyone is borrowing...Everyone. No body is paying back what they owe and just continue to borrow money to pay back the debt interest!
Crazy, right? Well, it works with crazy. With you and I we see a crashed system because we are thinking people. We are maybe 5% of the population. The other 95% just knows they can still wait for their income tax check and still buy a big mac and a coke, so life's good. The Federal Reserve says, "Hey, nobody's looking and paper is cheap, let's print up some more money, then sell it to the Europeans and the Chinese, and they do. daily. by the truckload!

So in a world wide system of failing fiat money systems the best of the worst is the US Dollar. I guess those aircraft carriers and Marines and tanks count for something because people still look to us as the best place to park their wealth and bet on the future with. For that reason the dollar is gaining in popularity in an accelerating fashion. We have been on a 4 month ride where the dollar has taken off. It is taking off because Greece and a few other nations are about to declare bankruptcy and wipe away their debt. Their nations will fall into anarchy and civil unrest, but, hey that stuff happens. So with more and more folks devaluing their money, the dollar is being shoved northward. And since the dollar is now the be all in currency, Gold is declining against it as well.

What the truth is, is that this is the end. We are now in the downward spiral toward destruction of the world monetary system. We might well be headed for the one world currency as our bible predicts in a way. The more the dollar goes up, it really just means everything else is going down.

Good right, I mean the dollar is getting stronger, correct??? Not so fast Buckwheat! When the economies of the world crash, there are no longer anyone or anywhere for us to sell our Chevies and big macs to, so we are left with only ourselves and likely Canada. Not enough customers so we suffer a massive backward leap in production and factories everywhere close and well, that's the ball game.

That's when the world will go to tangible stuff. My Gold may weigh 2 pounds and have been worth $40000 a year ago. If gold goes down to $1000 an ounce or less I'll be worth less against the marker of the moment, but through it all, I will still have 2 pounds of gold. That in a couple thousand ounces of silver and a bunch of land which I will still be able to stand on and hold in my hands.

What do you think Gold will be worth then? Well, it's hard to say, but I'm betting I can buy a cow with a small corner of that gold bar of mine. When things get out of the melt down stage, I can probably buy my neighbor's farm and hire some folks... The experts say Gold will rapidly double in value as in 24 hours, then rise to around $5000 an ounce which made for a 5 time increase in my wealth, but there is another factor no one considers. Out of a crowd of a hundred, I will likely be the only one having any gold, so even though my ounce of gold might only be worth $5000, I might be able to buy 10 acres of my neighbors land simply because they will be desperate. I believe I will have many multiples in simple leveraging power with something like gold or silver.

The dollar is going down the drain. It only gets to follow everything that preceded it with the first flush...
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