Ty Andros Says the Dollar is Facing an Extinction Event--02-04-2012

Ty Andros of www.Traderview.com, a speaker at FreedomFest's Global Financial Summit, believes the economic system and the Dollar, as it presently exists, are facing an extinction event. Currency shifts have taken place many times before and will continue to occur; they simply are part of human existence. No matter how hard we try, we cannot change this reality.

The solution is to understand where you are in the cycle and invest your resources accordingly. Precious metals are certainly an insurance policy against the resulting chaos, and Ty believes Silver is your greatest ally in protecting and building wealth. As a believer in the Austrian School of Economists, Ty says that the current crisis was long ago foreseen, and it was unavoidable. Better to be prepared than to be surprised.

Ty Andros of www.Traderview.com, a speaker at FreedomFest's Global Financial Summit, believes the economic system and the Dollar, as it presently exists, are facing an extinction event.

That would be perfectly true if the world is governed by the rational thought. The US dollar would be dead and buried long ago.

But the world is not governed by computers. It is governed by people who have their own interests. One of such interests is pretending to believe that the US dollar is a stable, trustworthy currency. Why is it so? Because the alternatives lead to wars. Too much of planet's wealth is locked in USD, too much trade is carried out in USD. If the USD dies then the next day the planet has no common currency. Euro is even sicker, and regional currencies don't even have the volume to step in.

The USD is being undermined by aggressive printing. But that alone is not enough to destroy the USD. Weimar Republic demonstrated it in 20th century and Zimbabwe is doing the same in 21st. If a certain currency is all that you have to trade with then you have no choice.

Some say "gold." There is not enough gold in the world to facilitate the global trade. Gold is also an inconvenient currency; it can't be electronically transferred. Physical shipments are risky and expensive. We are stuck with virtual currencies, basically. And governments of the world are very happy with this arrangement. This is the factor that keeps the US dollar alive; it might be an SOB, but it's our SOB. The USD may be not backed by gold, but it is currently backed by a much better force - by willingness of people to buy and sell it. It doesn't matter to the people how much the USD gets diluted because other currencies are ultimately tracking it, one way or another. Perhaps the USD is not ideal for storing wealth for decades; but what fiat currency is good for that? Besides, you don't hold USD directly (in your mattress,) you buy a piece of action at IBM or Apple or Microsoft, and then instead of paper you own a share of an actual business that provides goods that everyone needs.

There is not enough gold in the world to facilitate the global trade. Gold is also an inconvenient currency; it can't be electronically transferred.

There is enough Gold - the price just needs to rise to about $15,000 an oz.

Also: ownership of audited Gold can be electronically transferred. There are already debit cards (e.g. from GoldMoney.com) that allow transfer between account holders. These forms of account will (if the free market is allowed to act) lead to a de-facto precious metals standard.

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