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When the dollar dies, does it save the fed?

So, since the majority of the fed's holdings are gold, does the rising 'price' of gold make the fed more solvent? as a result, making their balance sheets appear better, making them less leveraged? does that mean that when the dollar begins its death dive, which would drive the rest of the worlds currencies into the same death dive, that the fed survives and gains control and ownership of everything in its debt structure through bankruptcy?

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If a there is no demand for a product

then the manufacturer of that product goes out of business. This is how I see the collapse of the dollar credit creation system. This goes for all fiat currencies since the US dollar is the world reserve currency.

The problem with using debt as money is that there is no way to finally redeem the debt since it can only be redeemed with more debt. This is why gold is essential in a monetary system, it can be used to redeem debt. The collapse of the dollar is a collapse of the debt system.

There is a counter-party for every single debt and the creditor has a claim on the assets and properties of the debtor. The debtor of the Fed is the United States Corporation so they can foreclose on the assets and the properties of the people that have been lodged as collateral I believe. The issuers of the derivatives, the credit default swaps issued to cover the default of debtors, are the first in line to claim the collateral. The major holders of these CDS are JP Morgan and Bank of America I believe.

This is why Dennis Kucinich was defeated in his primary this year I believe. His legislation would have placed the Fed under the Treasury and the debt could have been paid off with debt free US notes issued by the Treasury. At least that is my view of it. I am not in favour of State issued fiat currency but it may be a good way to clear the debts as an interim step on the way to sound money.

The alternative may be to launch a legal challenge to have all central bank issued debt declared "odious debt" and cancelled with the central bank and all its owners forfeiting any claim on collateral. In other words a true Jubilee.

"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)

hmm a lot of different things to say about this

i can't tell if your post agrees or disagrees, lol i go to write a response and then i change my mind on wether you agree, it seems like you disagree and then argue my point, perhaps i misunderstood, because first, due to legal tender laws i don't think demand can ever go to zero, at least domestically. so the fed can't go bankrupt, it was all fake anyway, the problem is if they can turn that fake money into real assets when the collapse happens.. does the fed owe anyone money? the second part of your post is the central concept of my argument, that the banks would be able to take everything in the death of the dollar either by natural causes or by instituting a competing currency, and thats where the question of gold comes in, and who would have a claim on it

i've been reading more as i write this and i feel more lost now lol trying to understand all the lingo tossed around in banking is not easy, the idea behind printing debt free money to replace FRN's as an intermediary to competeing currencies has seemed the best to me as well, but im still digging into possibilities since most people seem to hate the idea of debt free govt currency

The legal challenge

is the best route to follow in my opinion. This would cancel all debts without recourse to the collateral held by the creditor. This is the debt Jubilee which is a divine command and so must be obeyed at some point.

I also do not support the issuance of fiat currency by the state. I just mentioned it in passing as a possible temporary solution leading to the Jubilee.

I wasn't actually agreeing or disagreeing with you I was just thinking aloud as it were and not necessarily in any connected way. The collapse of the global central banking system is coming, of that I have no doubt. This is absolutely a good thing and it will be replaced with something better. I am convinced of that.

There will also be a day of reckoning for those who have foisted this system on the world usually by violent means or chicanery. It is the source of so much that is destructive both personally and socially. The task will then be to teach people how it all worked and how it was fraudulent and how it affected so much of who we are and what we do.

"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)

No. If The Dollar Collapses, This Is What Would Happen:

No. If The Dollar Collapses, This Is What Would Happen:

"Believe me, the next step is a currency crisis because there will be a rejection of the dollar. The rejection of the dollar is a big, big event and then your personal liberties are going to be severely threatened" - Ron Paul

Wisdom Strategies

well you're confused a bit

well you're confused a bit there, the dollar collapse IS the currency crisis not what causes it. and as such its exactly what i was putting for as the cause in my post, when the currecy crisis happens, the question is who benefits, those that hold physical assests benefit while those that own only paper take the losses, so does the fed look better the worse the dollar looks?

He Who Holds the Gold Gets All the Money

Very interesting observation as this has also been my perspective. http://www.apmgoldbulliondealers.com/the-bankers-are-prepari...

Ron Miller

Where did you get this from?

...the majority of the fed's holdings are gold...

Where did you get this from? Isn't it the Treasury that holds gold? The Fed is a broker to the US Treasury and has only minor percent in paper gold:


oh and i guess i should add i

oh and i guess i should add i was basing a lot of my expectations of fed gold holdings on Dr Pauls committee meetings when he asked why the fed held gold instead of diamonds or something else and bernanke responded weakly with tradition, theres a youtube of it that is quite easy to find

hmm i supppose i was basing

hmm i supppose i was basing that on several things, which were at least partially or potentially incorrect, at the very least i did not specify the way i should have, looking a few things up i see that the fed had since the 70s been dumping gold, some say suspiciously, but in the last few years have been buying it and in record numbers, 500% more in 2011 than in 2010, at 440 tonnes, i can't seem to recover the website for that data, but i at least didn't make it up, however i have seen other people say that they sold roughly the same amount so that may mean nothing. many places elsewhere you see listings for countries/institutions that own gold and we are placed at the top with about 8000 tonnes, but those are all listings of holdings not of ownership. For instance, perhaps the treasury does in fact hold that gold, hard to know if its even still there, no one has been allowed to see it, but saying it is still in Ft. Knox, then ALL of that gold is owed to the federal reserve in debt. Many places list countries and central banks at roughly 20% of total gold possession. This leaves 80% in private hands, or 128000 tonnes or so. So to be more specific on my original post, its not really the central banks i should really be talking about, rather the 'money changers' if you will, the people who own the private institutions known as central banks, consider who might have the wealth to own the rest. A lot of that is probably held by jewelry companies im sure, of course the same people own those as own the banks, so they own that gold too, there is certainly a large chunk stored away in grandma's jewelry box, but thats the only kind of gold an american is allowed to possess, and it would not save the people from what i described. there is physical demand for gold but it is covered entirely by mined gold plus recycled gold. a small list of foreigners would no doubt own 50% or more of the gold if you could honestly track ownership, which they have made impossible, but i bet if you somehow came upon the Rothschild combined holdings you would find they have a pretty big chunk of private gold, and since they started/own the central banks as well as the majority of the jewelry trade, just to name a short list, you can bet that they would have more than enough to manipulate the currency as i was saying

You said WHEN the dollar dies...

...instead of IF...ugh...reality bites(unless we get Paul)!

Watch this...

WHEN is correct, watch this and start thinking about the reality. Some scary stuff to consider.
The guy that makes these vids sums it up simply for all to understand.
Prepare yourself and your loved ones.


youtube search: storm clouds gathering

Lots of important vids to watch!

Let it be written, that in 2012 we changed the World!!!

No clue man. Great question

No clue man. Great question though

juan maldonado