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U.S. Trying to Push Back a Dollar Blowup

What do you guys think?


http://youtu.be/AyO-xR6ZW20




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Doesn't the strength of the dollar come from the fact

the FED bought up the short positions in gold and silver markets.

Gold standard: because man can not be trusted to control his greed

As we watch the federal

As we watch the federal govt's actions, things become more clear as time moves along. I read not too long ago but don't remember the source that usually, these trade agreements take a couple of years before put in place. Obama is pushing hard to get it done as fast as possible. This would explain it; the dollar is getting awful close to it's demise. I was thinking about how the U.S. has been propping up Europe, but who would prop up the U.S. if our dollar is nearly dead. Who could? I also wondered about what currency would take the place of the dollar when it collapsed. I knew that the U.S. and Europe might try to merge but never really thought about the dollar becoming the fiat currency rather than a new currency. And I didn't think about the dollar being the one world currency for Asia as well. This is so selfish; it only dooms our posterity. I'd rather go through the pain now than leave it to our kids, grandkids, and g-grandchildren. What a selfish world we are living in. Paul Craig Roberts said it right; he called these countries prostitutes. They don't care about their kids or citizens; only the money. Makes me sick.

The next stage is regionalism. They will push for regional

integration similar to Europe, but of course, each region will have its challenges.

Eventually, there will be about 8-10 regions each with their own common currency.

Plans are already in motion with the NAU (North American Union), the ASEAN (Association of South East Asian Nations), the MENA (Middle East - North America), and the USAN (Union of South American Nations) with proposals for the AEC (African Economic Community), and CACM (Central American Common Market) among others. Many ofthe current and proposed regions overlap, wich is part of the plan because eventually, they intend to integrate all of the regions globally, though they may retain some semblance of separateness or independence, even among nation states.

Think of it like liberty - as long as you think you live in a free country, even if you don't, you won't rebell. The thinking goes, as long as integration doesn't look like integration, you won't fight to stop it. Nation States will remain, and new ones may even be created, but they will be mere facades of their former selves with no real sovereignty.

I want to

propose legislation in my State to legalize a competition in currency. Of course those who are dependent on the government will be broke, and probably will not make it through to the next paradigm, as these things tend to kill a lot of people.
To offset some of that, I propose a new fiat currency, printed by the State Treasury. This time though, it will not be politically issued out to their buddies or those in favor with the state government. It will be directly to the people. ALL the people, and businesses.

So it will be introduced into a Free Market Competition in currencies. Since it will not be back by anything but "People's Credit" the incentive will be to diversify out of that currency and into another market currency (bitcoin, commodity backed, or any new type of currency).

This will eventually collapse the fiat currency, but it will have served its purpose. EVERYONE GOT SOME, so they have a second chance.

The states economy will GREATLY benefit from it as well.

Ron brought the Liberty movement together, Rand is expanding the crap out of it! :)

BUMP

Very good video.. thanks for posting

"When the people fear the government, there is tyranny. When the government fears the people, there is liberty."

-Thomas Jefferson

I think he's

right.

It was long but I listed to it all. One way to look at it is governments against the people. What appears to be happening is government fiat money is failing, so the only way to save or prolong it at least is to team up, with the dollar as the leader.

The way money works that could work, even with all the economic problems, because money (the dollar) would still have widespread value. It would result in pushing further two classes, rich and poor, and with the poor more reliant on government for everything.

Two things could upset that plan. First the dollar could collapse before they are able to get everything set up. I think that's what will happen. Second the people could wake up to the fiat scam and return to more sound money like gold, opting out of fiat no matter how many countries support the dollar. I think that would happen if things didn't collapse first.

Either way their attempt is a desperate attempt to save a system that could never work forever, unless you have only an elite ruling class that controls everything.

The dollar is not going to collapse anytime soon

The dollar is not going to collapse anytime soon because the dollar represents a basket of other currencies that would by definition have to become stronger. I wrote this on the gold post, that the dollar is just an "illusion" that can't go to zero if it is priced in other currencies that have the same fiat issues (Central Bank interference) associated with them. Can they all go to zero of faith is lost in all currencies? Sure. But we're not close to that at all.

The dollar is still "perceived" as king. People in Argentina are trading their pesos for dollars with a 30% haircut, just to get what they perceive to be something that holds its purchasing power. The dollar is still represented in 70% of the world. Not the Euro. Not the Yen. Not the Yuan.

I am bullish dollars and gold, which is explained in my next book, "Illusions of Wealth."

Does this mean I am confident about the U.S. economy? Hell no. Europe either. But pricing one currency versus another won't paint you a clear picture.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

I think you're right

I really don't know so very much about currencies and such, but I do think that the dollar is still king for most people in the world--maybe I'm wrong.
I also feel there very well may be a collapse if things continue to go in the direction they are, but I don't think it will be very soon(<3 years)I believe I am realistic in being optimistic about the great possibility of us, and many other countries, going in a more sane, healthy direction. Maybe something like a bad illness that you overcome, and in the process you realize your bad habits and change your old ways and start living right to maintain health. It's going to take a lot of very hard-working antibodies to shake off some of these very aggressive germs that have infested our organism, though.

You don't

think faith is being lost in fiat currencies?

All you have to do is take a look at the protests and turmoil going on around the world. The only thing is the people don't know why things are so bad, but they will learn. Money is a confidence game. You're right that people in places still believe the dollar is strong, but that doesn't have to stay that way. People are questioning things now, including what governments tell them, like their money being safe in a bank when that's proven false by bail-ins like Cyprus.

rpcongress

I understand what you're saying, but what is going on in Greece and the rest of Europe is actually dollar bullish. What's going on in Japan with Shinto and the G20 allowing the Yen to weaken is dollar bullish. That's 70% of the dollar right there.

People in those countries need to hedge their currency risk too, and some have done it with stocks, but I believe more and more will turn to gold/silver. I am already getting inquiries from Argentina, Sweden and Australia, to name a few.

I do agree that it will be a race to the bottom, and think in the meantime, this will be dollar bullish only because of "perception."

Perception can change on a dime and gold is the insurance that is needed because of this.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

You have to consider

The BRICS nations dropping the Petro Dollar. They are no longer going to trade in dollars, and that will weaken it. Once it start to gain enough devalued momentum, it is happen way more rapidly.

Ron brought the Liberty movement together, Rand is expanding the crap out of it! :)

CT

There is validity in that, sure, which is why I think the elite talk up the story that the U.S. has all this shale gas extraction potential we can use for future energy. Fox News is still promoting this illusion: http://www.foxbusiness.com/investing/2013/07/10/opec-to-lose...

But others say it's not the case, which is why there is validity to what you say, but maybe not quite yet. (Think ponzi scheme here...it lasts until the scheme is caught onto....):

"In a sobering report, Arthur Berman, a veteran petroleum geologist specialized in well assessment, using existing well extraction data for major shale gas regions in the US since the boom started, reached sobering conclusions. His findings point to a new Ponzi scheme which well might play out in a colossal gas bust over the next months or at best, the next two or three years. Shale gas is anything but the “energy revolution” that will give US consumers or the world gas for 100 years as President Obama was told."

http://www.globalresearch.ca/the-fracked-up-usa-shale-gas-bu...

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

That's

what he was talking about. Man, the people of the EU are typically more awake than us now, lets see who wins the energy race. I will put my money on Russia...

Ron brought the Liberty movement together, Rand is expanding the crap out of it! :)

No

I don't think you understand.

Just because there are more idiots following something doesn't make that something any more correct.

What do you think is going to happen when more people in America realize how shaky the dollar is, and that it's only getting worse? Like I said money is a confidence game and slowly people are losing faith in what "experts" like Bernanke and even the President say. Just today the White House revised down their economic growth forecasts, again. They can't keep bluffing, and inflation is on the way. The bond market is already getting crazy. Rates will rise before long and along with that serious inflation. They can't hold the illusion together much longer.

RP

Dollar has been in an upward trend since September of 2011 and is continuing higher with the issues that the euro in the inner having which represent 70 percent of the dollar. It has nothing to do with inflation, as far as the "price" goes. purchasing power is another issue and that my friend is the illusion that the dollar is stronger.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

You still

don't get it.

Other countries support the dollar's purchasing power to their detriment. I'm saying there is a limit to that. Once interest rates rise, and they will, you're going to see notable inflation, not the kind that can be debated I mean super obvious. The paper metals market is false, so gold may not rise as fast, but physical demand will be obvious. Gas prices I don't think can be so manipulated, and that's where you'll see spikes, maybe even $20 plus per gallon, meaning havoc. It doesn't matter if other countries continue to inflict even worse on their citizens by following the dollar. Americans themselves will turn away from it.

Why are you so

Why do you communicate in a demeaning manner by saying, "You still don't get it." Discuss, don't take the higher ground.

I explained my position and stand by it. You say, "once interest rates rise," but they haven't until recently, right? The dollar has gone up against all other currencies since September 2011, right? Then you "speculate" as to what will occur next, without addressing what I said, that "inflation" or "purchasing power" is not the same as the dollar priced in other currencies.

In discussing these types of things, it helps to understand definitions. Inflation, as I see it, is the amount of fiat (dollars) and credit in the economy. Where you and the Austrians (some of them, but not the one's I quoted in my book), missed the "credit" side of the equation as we have been mired in a "deflationary" credit contraction that Bernanke has been trying to fight (and failing) tooth and nail with bouts of QE.

Simple as that.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

I said

"you still don't get it" because above YOU said you understand what I'm saying. I'm saying you don't. That's not taking a higher ground. That's only saying you don't understand what I mean.

This stuff is way too complex to get into meaningfully with a few words in a text box. But basically the dollar in relation to other currencies is irrelevant because they're all the same (failing). The only thing that's relevant is the dollar in relation to physical gold. When enough of the market actually realizes that everything else WILL adjust accordingly.

You said

You said; "You don't think faith is being lost in fiat currencies?" and started talking about protests in other countries.

I replied that I am dollar bullish because of the weakness in other currencies.

In your last post, you basically said the same thing you replied to that I wrote;

I wrote; "the dollar is an illusion. Can they all go to zero if faith is lost in all currencies? Sure. But we're not close to that at all."

You wrote; "the dollar in relation to other currencies is irrelevant, they're all the same (failing)."

If you look at the 5 and 10 year charts, they are all losing purchasing power to gold (takes more to buy). This isn't true the last couple years for any currency though. But I do agree "everything WILL adjust accordingly," so I think we're on the same page.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

You said:

"The dollar is not going to collapse anytime soon because the dollar represents a basket of other currencies that would by definition have to become stronger."

That's what I disagree with. What the dollar represents or its relation to other currencies, or it's current purchasing power, or it's recent record is irrelevant. The dollar will collapse when enough people realize those things are irrelevant. You can't know how close that is or isn't. That's dynamic and can't be predicted, but I'm less dollar bullish than you.

we can

agree to disagree on that.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

Question

Doug, you seem very knowledgeable on this subject (currencies). I was wondering what your thoughts are on the forex exchange market. I am fairly clueless about monetary policy and its effects on various markets but it seems like it would take no genius to speculate the USD would drop against every currency pair after the FOMC minutes today (and thus maybe worthy of speculating on if you have some appetite for risk).

dollar

Newt, I am currently at FreedomFest in Las Vegas, and a few speakers, Jim Rogers, Steve Forbes, and this lady from Europe, Barbara Kolm from Hayek Institute were panelists. She said Euro is toast. Example, France has 2/3 their workforce, according to her, working for the government and while Germany workers work till 67 and receive a pension, Spain I think it was, citizens work till 50-55. Germany's production can't support all of Europe.

All currencies will fight to go lower and as Rogers said, this is the first time this has ever happened.

The dollar got slammed yesterday because of what Bernanke said. Notice how the Fed speaks and currencies and markets moved? Euro was breaking down. They support each other, till they can't. Euro experment has only been around 13 years. Troubled waters ahead and by default, the dollar will benefit, no matter how screwed up we are here.

going to ask more questions of some of the speakers here to confirm my understanding.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!