Posted on 04/14/2011 6:42:19 AM PDT by SeekAndFind
The most astounding feature of the political fray as the 2012 election comes into view is that not a single Republican other than Congressman Ron Paul is stepping forward to brand as his or her own the issue of honest money. The whole party is into the negotiation with the president over the budget, and the underlying issue--the failure of our fiat currency--is up for grabs.
It is true that there's plenty of blame to go around on the dollar. It had a value of 265th of an ounce of gold on the day that George W. Bush acceded to the presidency and was worth less than an 853rd of an ounce of gold on the day he left office. The New York Sun, which supported Mr. Bush in 2000 and 2004 elections, issued in December of 2005 an editorial called "The Bush Dollar," warning of the collapse of the greenback. It had just sunk below a 500th of an ounce of gold.
Today, of course, it is worth barely more than 1,500th of an ounce of gold. The giddiness of the plunge of the dollar really started to be felt in the years after the Democrats acceded to the leadership of the House. At the time the Sun called for renaming the dollar "The Pelosi." The collapse has been so dramatic that the Europeans, the United Nations and even the Chinese communists are talking about the need to create a new international reserve currency. Yet not a single Republican has stepped onto the national stage and declared a run for the presidency on a platform containing the strong dollar as a major plank.
Now that the Republicans are back in control of the House they are in a perfect position to press this issue.
(Excerpt) Read more at forbes.com ...
The inflation resulting from the devaluation we are witnessing is the only salvation, the only cure for the cancerous debt. The devaluation is by design. Republicans know this as well.
Obama is the designated devaluer.
Massive spending reductions will lower the slope of the debt growth curve but will do nothing to reduce the outstanding debt. Only inflation and devaluation will do that.
The power of compounded moderate inflation is immense and over a mere five years at 7% can reduce the debt by half merely by devaluation. The trick is to establish a moderate and tolerable rate of 7%
Some think the US$ will be dropped as the reserve and that may very well happen. My view is that many others have a very similar problem and there will be a general relative devaluation and price inflation. Gold and silver are primary indicators the process is in effect.
A good old fashioned major war is about all that can knock the process off track. I don’t discount that possibility.
Right on, you got it.
>> The power of compounded moderate inflation is immense and over a mere five years at 7% can reduce the debt by half merely by devaluation. The trick is to establish a moderate and tolerable rate of 7%
The other necessary trick is to figure out a way around adjusting massive entitlement outflows upwards to compensate for your 7% inflation. Otherwise that deficit ain’t goin’ nowhere, brother.
>> My view is that many others have a very similar problem and there will be a general relative devaluation and price inflation.
I share that view, and I’m still struggling to wrap my head around the implications of multiple simultaneous defaults/devaluations everywhere in the world.
Why? What happened to the last president who tried to strengthen the dollar by ordering the Treasury to print Silver Certificates for legal tender? Hint: JFK
Ya get the govt ya voted for. Too many slick lawyers who do not know how to work, life time elected people who ride around in a pickup truck saying whatever with a flannel shirt an jeans on. These people just screwed the greatest economy into the ground.
Need a guy who knows, been there, made money, took looses, stood up, dusted himself off and got back at it, Not a lawyer. Not a politician
” I’m still struggling to wrap my head around the implications of multiple simultaneous defaults/devaluations everywhere in the world. “
Don’t worry - you’ll be able to observe those implications first hand...
Of course, you’re probably gonna be too busy trying to survive to notice - or care....
A lot of folks are doing that now.
We can not pay off the debt with honest money, the only way to pay off the debt is with worthless money. Those with hard assets will tread water, those without will sink and the bankers will make out like the bandits that they are.
The GOP under Bush started the current weak dollar. They don't have anything to say, because it's what they want.
>> Of course, you’re probably gonna be too busy trying to survive to notice - or care....
My plan is to not only survive, but thrive under the coming conditions. :-)
They are too busy shooting themselves in the feet. The Young Guns. Why worry about Obamacare, EPA, DOE and all the other huge strangulation agencies and bloated government when you can attack Social Security and scare Senile Citizens to death.
I saw an inspiring focus group segment with Frank Luntz and a group of Tea Party republican freshmen. The RNC should take some cameos from this group and start making and showing TV spots non-stop.
That man is Mr. Trump.
They solution to the the falling dollar problem seems to be missing in action in the arcticle itself and in all the comment except yours.
Let me explain the reason for the falling dollar and the rise in gold, silver and commodity prices in simple terms.
The value of the dollar is falling primarily due to the historically high DEFICITS that are being run by the Federal Government and are expected to continue for many years in the $Trillon per annum range. The problem is that the world’s capital markets cannot support that level of new deficit spending - the extra cash for investing in U.S. treasuries just isn’t there.
So the shortfall of dollars available from normal markets for U.S. treasuries has to to be made up by the Fed and they just pull the necessary ‘credit’ out of the sky, their rear ends or their Xerox machines and hand it over by various means to the Federal Government.
That gives us huge new money chasing fewer and fewer goods every year. THAT’S CALLED INFLATION AND IT IS COMING AT US LIKE A FREIGHT TRAIN.
THE SOLUTION: GET THE DEFICITS DOWN TO ZERO SO THE FED WILL STOP PRINTING MONEY THAT DEPRECIATES THE VALUE OF THE DOLLAR.
because secretly they enjoy the thought of the ChiComs waking up and crapping their pants every morning
-—The other necessary trick is to figure out a way around adjusting massive entitlement outflows upwards to compensate for your 7% inflation. -——
You are correct.
My understanding of the current discourse is that the Ryan budget is attempting to do just that. A means for accomplishing the various social purposes will be provided by entities and sources other than the federal government.
However, it must be understood that the current debt can’t be eliminated by decreased spending. Eliminating debt is the reason for the inflation. Future debt can be prevented or lessened by new programs addressing retirement/ healthcare and the budget
You mean a 40% reduction.
From post: "The most astounding feature of the political fray as the 2012 election comes into view is that not a single Republican other than Congressman Ron Paul is stepping forward to brand as his or her own the issue of honest money. The whole party is into the negotiation with the president over the budget, and the underlying issue--the failure of our fiat currency--is up for grabs. It is true that there's plenty of blame to go around on the dollar. "
Here's my take. Republicans trying to sell cuts in non-defense discretionary spending using the argument that the debt sky is falling sounds pretty lame when they refuse to tie inflation (oil and food) to the deficit. Voters want to know how it affects them NOW and the near future. So how does it affect them when Republicans say tax cuts are off the table and Democrats say spending cuts are off the table and the falling dollar and inflation have nothing to do with it?
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