“Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.”
Yeah, well, a lot of things are predicted for December 2012.
This seems like one of the more plausible predictions. Do your Christmas shopping early, folks. And just remember, Mountain House freeze-dried food is expensive, but it lasts forever, tastes great, and is much lighter than MREs.
“With enough biltong, bullets and beer, a man has nothing to fear.”
[quote]Headhunter wrote:
RJ, every government that ever used fiat currency wound up either having a revolution or a collapse, followed by a return to sound money.[/quote]
Except for the ones that didn’t collapse and still exist.
Are you telling us that all the governments that no longer exist collapsed?
[quote]Gael wrote:
Headhunter wrote:
RJ, every government that ever used fiat currency wound up either having a revolution or a collapse, followed by a return to sound money.
Except for the ones that didn’t collapse and still exist.
Are you telling us that all the governments that no longer exist collapsed?[/quote]
you are perfectly free to study the fate of the Roman Empires, and their monetary, fiscal and trade policies.
[quote]orion wrote:
Gael wrote:
Headhunter wrote:
RJ, every government that ever used fiat currency wound up either having a revolution or a collapse, followed by a return to sound money.
Except for the ones that didn’t collapse and still exist.
Are you telling us that all the governments that no longer exist collapsed?
you are perfectly free to study the fate of the Roman Empires, and their monetary, fiscal and trade policies.
Constantinople fell in 1453, Rom in 476.[/quote]
Include also the various Chinese empires, and the Spaniards. The Spaniards had a bubble due to gold though, but the idea of using an inflated money supply leading to Imperial Overreach is sound.
Gael,
The speed of the collapse is dependent on how big the bubble created by unsound monetary practices is. Empires created on fiat money doom themselves.
[quote]Headhunter wrote:
orion wrote:
Gael wrote:
Headhunter wrote:
RJ, every government that ever used fiat currency wound up either having a revolution or a collapse, followed by a return to sound money.
Except for the ones that didn’t collapse and still exist.
Are you telling us that all the governments that no longer exist collapsed?
you are perfectly free to study the fate of the Roman Empires, and their monetary, fiscal and trade policies.
Constantinople fell in 1453, Rom in 476.
Include also the various Chinese empires, and the Spaniards. The Spaniards had a bubble due to gold though, but the idea of using an inflated money supply leading to Imperial Overreach is sound.
Gael,
The speed of the collapse is dependent on how big the bubble created by unsound monetary practices is. Empires created on fiat money doom themselves.
[/quote]
I was just hoping to point out the absurdity of “every government that ever used fiat currency collapsed” when it’s obviously not true. We haven’t collapsed yet.
It’s like saying everyone who ever took a breath has died, except for the ones who are still alive.
[quote]rainjack wrote:
Varqanir wrote:
If a dollar is completely worthless in three years, will the dollar price of an ounce of gold be infinity?
If the dollar becomes as worthless as the fear mongers say - gold will be worthless as well. [/quote]
On the contrary, if the dollar drops, the price of gold will go up. The dollar drops as the government inflates and drives the dollar down. Gold goes up in response.
Gold is an inflationary hedge. As a general rule, gold always retains value, but never actually gains value except in relationship to currencies.
The standard explanation is that back in the 1800’s, and ounce of gold would buy you a pretty good suit, and maybe shoes to go with it. Today, an ounce of gold will buy you…a pretty nice suit and maybe some shoes to go with it.
Plot the price of gold against the dollar. They are pretty much inverse.
[quote]Gael wrote:
Headhunter wrote:
orion wrote:
Gael wrote:
Headhunter wrote:
RJ, every government that ever used fiat currency wound up either having a revolution or a collapse, followed by a return to sound money.
Except for the ones that didn’t collapse and still exist.
Are you telling us that all the governments that no longer exist collapsed?
you are perfectly free to study the fate of the Roman Empires, and their monetary, fiscal and trade policies.
Constantinople fell in 1453, Rom in 476.
Include also the various Chinese empires, and the Spaniards. The Spaniards had a bubble due to gold though, but the idea of using an inflated money supply leading to Imperial Overreach is sound.
Gael,
The speed of the collapse is dependent on how big the bubble created by unsound monetary practices is. Empires created on fiat money doom themselves.
I was just hoping to point out the absurdity of “every government that ever used fiat currency collapsed” when it’s obviously not true. We haven’t collapsed yet.
It’s like saying everyone who ever took a breath has died, except for the ones who are still alive.[/quote]
Word ‘on the street’ is that governments around the globe may (just may) be reconsidering re-monetizing the yellow metal, which will actually help reduce debt. If the official price is raised from $42 to $10,000 per ounce, about 20% of our debt would be covered by our gold. Interest rates would plummet for government debt to near-zero, because of the gold backing.
Of course, government coffers would fill with gold at that price and dollars would be created like mad, to re-liquify the world and prevent a deflationary depression (which just began a couple of months ago).
