47 replies to this topic

[ninjadude]

AsteroidX, on 06 February 2013 - 07:22 AM, said:

We do not have the gold anymore to back up our currency.

you say that like it's a bad thing.

or news.

[Yamato]

AsteroidX, on 06 February 2013 - 07:22 AM, said:

We do not have the gold anymore to back up our currency.

http://www.fsmitha.com/h2/gold.htm

Under a gold standard, people will want to hold dollars, not gold.   Under the current system of government fiat, people will want to hold gold, not dollars.  In the article you link it references the dollar as the reserve currency of the world, another major bragging point that makes the US #1 in the world is the status of our currency.  Will we be fool enough to believe that for the first time in world history, our currency is going to maintain that status for centuries?   The problem with fiat currency is that it always goes to zero, as the dollar has been approaching already in the past 100 years.   We're sheltered from that effect domestically just enough to let our banksters fool us into thinking there is no inflation but this won't be possible when our Asian enablers dry up their well and want to start to see some of their capital return to their shores as their economies turn from predominantly production and cheap labor to consumption and a more sophisticated standard of living.   When they're consuming for themselves they won't need us anymore and the bills are going to come due and that's what's going to be one of the key features of the real crash to come.   When 70% of China's market is consumption like ours is, the US consumer is who's going to get nailed.   Those everyday low prices at Wal-Mart aren't going to be so everyday low anymore and our service economy will face the music on how few modern goods we can produce for our own consumption over here anymore.

[AsteroidX]

I think thats what I was trying to say by posting that link.