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Comment: One thing I have learned.

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One thing I have learned.

I worked in the North American financial markets for 25 years and my original introduction to "the coming collapse" thinking came during the 1990-92 recession of GHW Bush. I do believe that the world economy is very sick due to all the things we discuss here at the DP. However I have come to the conclusion that it is impossible to time the "big event" whatever shape that may take. This means that the best approach is probably the cautious one that says hope for the best but plan for the worst.

Having said that my own personal belief is that we are very close now to the change that everyone talks about and that change, in my personal view, will be the replacement of the US dollar as the world reserve currency with a gold trade note that will be settled in physical on completion of an agreed trading cycle. This will be similar to the international bills market underpinning the classical gold standard that ended in 1914 and was never re-instituted.

I also believe that every country will be free to determine their own national currency arrangements but that whatever their decision their national currency will have to be marked to the international gold trade note market.

There will be I believe an interim period, of unknown length, when credit will dry up completely since the present global monetary system will have to be completely replaced by the new system. The present system is of course all based upon credit/debt so this is why i believe it will simply disappear. This means that as an individual it would be prudent to maintain a store of physical gold and/or silver and a stash of cash since in all likelihood even FRNs will remain legal tender until the new system is in place. Gold and silver will I believe be revalued much higher to provide adequate liquidity for the new markets. In addition to these monetary precautions it would be wise to keep a good store of non-perishable food in case the food distribution system breaks down for a while.

I have read of people advising that taking on debt would be a good idea if inflation is ahead. My own view is the opposite. The reason I believe this is that all debt notes, to my knowledge, contain draconian provisions for seizure of property and assets in the event of a credit/debt crisis. That these provisions will be acted upon is I believe a certainty.

The financial derivatives that many believe make the biggest banks vulnerable have been legally protected and provided with primary claims against ALL property and assets insured by them. These banks who are at the core of the present monetary system will use their legal powers to seek to seize ALL assets and property covered by their agreements. The only defence against such seizure so far as I know is the claim of odious debt and that may take some time to implement and prove. If the new system is going to be a just one then it is likely that these claims and counter claims will have to be settled before the old system can be finally wrapped up.

So, to end where I began, it is beyond my ability to know or even guess when the process we are enmeshed in will finally end. However as Churchill said after the Second Battle of El Alamein, "Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning."

PS. Here is where I buy PMs.

"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)