Ron Paul was on Bloomberg’s Lunch Money discussing the developing currency wars.  Paul states that the currency wars have been ongoing for decades, but they are now gearing up, but that government’s always compete to devalue their fiat currencies.

Paul informs the Bloomberg host that the loss in purchasing power from currency devaluation in a currency war devastates the middle class, and cancels out any slight benefit that you might be getting temporarily in terms of trade.

Paul also states that one day soon people around the world will reject all fiat currencies, and we will move into an age where people want to buy hard assets, and that this has already started with real estate, gold, & silver

Paul’s full interview on the coming economic collapse is below:

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  1. I’ve been coresponding with some Virginia politicians, encouraging them to consider my ‘copper first’ method of re-instituting a Constitutional monetary scheme in their State. Of course, I can’t know if they’re simply being courtious, but they did seem to be receptive since I did recieve a couple return messages requesting detail.
     
    While so many folks presume mahem and catastrophy, the more I think this alnative path through, the more thouroughly convinced I become, that it can work spectacularly if executed smoothly. What lay at the core of our ills, is the breadth and depth at which valuation gets entirely fouled up by circulation of credit. As vonMises had intuitively said,  “There is no means of avoiding the final collapse of a boom brought about by credit expansion.”, but in real terms, what does that mean? It means, return of un-corrupted valuations, falsely distorted, high and low, by the credit distribution.
     
    Following the earliest Chinese example, of reverting all the paper to its appropriate physical form (copper cash), all the damage is simultaneously erased from experience and the free market then re-aligns all rational inter-relationships between the goods comprising the matrix. Their decisive advantage then, was that they operated in a WEIGHT-BASED scheme. The hinderence suffered in the West, is psychological dependence on unitary definitions unrelated to reality … i.e. ‘dollar’. So, naturally, a ten (maybe eight, by now) gram copper piece can’t ‘logically’ be called a ‘dollar’ (even though an equivalently valued alloy ‘President’s Dollar’ is foisted without shame), chiefly, because the great overriding object is to set foundation for silver to quickly find a proper exchange ratio to the copper … followed soon thereafter by a realistic SGR, in turn.
     
    When originally executed, this course preserved, the Chinese Empire AND its pivotal influence in Asian commerce! Yes, they had to burn their immensely costly Navy and introvert their foreign relations with the rest of the world … BUT THEY SURVIVED QUITE WELL, THANK YOU!
     
    Paper Rots, Coin Does Not.

  2. The Presidential Dollar!?  The coin–monetarily and metallically worthless.  The President?  Just about the same, maybe less IMO
    The VP?  Worthless as a bucket of warm spit. 
    The President. 
    I’d say worthless as a bucket of manure but with manure you can fertilize a garden. 
    All it takes for evil men to prevail is for good men to remain silent.  Grind ‘em Pat.

  3. The Bloomberg channel are such asses! I love how they show the short term USDX up for the day 0.028 (0.03%) and how they show the 5 year chart of 3 up and down trends (to try and discredit Dr Paul). Just looking at that chart it is clear to me that the next down turn will surely see the USDX fall below 72. The last time it went that low Silver went to $49 an ounce and Gold went to $1900. They should have showed the 100 year USDX chart instead.

    The dollar will eventually reach its real value of zero before Obamas second term ends.
     
    Obama/US official deficit per year:
     
    2009 – added $1,611,544,812,900
    2010 – added $1,713,865,541,197
    2011 – added $1,100,683,757,688
    2012 – added $1,306,831,074,172 (Obamas so far added $5,732,925,185,957 to total debt) (@$16 trillion)

    now it should really start to grow because Debt to GDP is past 100%

    2013 – will add IMO at least 2 trillion (@18 trillion)
    2014 – will add IMO at least 3 trillion (@21 trillion) (once we pass $20 trillion watchout! IMO)
    2015 – will add IMO at least 5 trillion (@26 trillion)
    2016 – will add IMO at least 7 trillion (@33 trillion) (Gameover by this year for sure!)
     
    I wonder what are the chances during this Currency War for The Green Back(non interest bearing cash)to return and buy up interest bearing US Bonds to stop the bleeding? Anyone?
     
    Perhaps instead of GreenBacks buying up the US Bonds the IMF buys them instead using SDRs? SDRs from what I have read online are non interest bearing if the country has a certain amount in reserve. Perhaps this is the plan all along to have the IMF  buy up every ones debt and create a single one world currency? I dont know enough about SDRs, Greenbacks and Bonds to figure this one out and don’t have the time currently to figure it out in the near future :)
     
    I think this could make for an interesting discussion.

  4. Stacker X   I’ve been thinking along the same lines re the increasing rate of debt accumulation.  If BHO gets his way, there’s nothing   to curb his  appetite for debt and the fed’s complicity in this criminal action  to monetize the debt with printing, the race to the top, or bottom depending on your point of view, could easily accelerate the debt burden. Your figures are probably correct and you may be an optimist.
     In 1982 the debt started ramping up at about $125 billion a year. It accelerated to $250 billion by the early 90′s(there was no balanced budget BTW)  and then to half a trillion by the early 2000′s.  It’s been  accumulating at $1 trillion plus for the last 5 years along with the GAAP rule increase for mandated future payments that’s running $10 trillion a year. Guns and Butter are getting really expensive.
      It’s not if,  but when,  we see real inflation rolled down the streets  at a rate that could easily be 15-20%. This is inflation that can’t be  jawboned by the BLS.  The fat’s  in the fire and it will be as evident at in the 1970, before the BLS started its unrelenting BS.
    All expenditures, whether the family of four or the ‘family’ of 315 million, will have to be financed.  We don’t have the tax revenues to come close to funding a government that’s growing expenses by 20% a year just to keep up with inflation and maybe another 5-10% a year to continue funding the mandated expenses and entitlements.The government beast will demand to be fed even if the average family goes hungry. 
      Without continual increases in funding levels, particularly those mission critical like SS, Medicare, Obamacare, Defense and the poor, this whole debt Ponzi scheme collapses.  See Argentina and Venezuala struggle with 25-30% inflation.  The crash crash in those countries is already in the streets even of the lying bastards in the presidential palaces lie with vigor.  
    Wage and price controls, rationing, forced expropriation of assets like retirement plans and huge dollar devaluations are all part of the plans this country will take to try to stop this juggernaut of spending and debt. ALL HAVE BEEN USED IN THE PAST.
     These harsh measures won’t work because we passed the tipping point when Debt to GDP hit 100% and under GAAP rules, amounts to 500% or greater.  It’s just a matter of time when this tsunami hits. 
    Just following  our present course will give us $5 trillion in additional debt by 2016 but that assumes a static debt, deficit and tax revenue situation.  This cannot remain static however as the more the government takes the less the private,  tax paying sector makes.  Revenues drop, inflation kills capital and profits and the entire local, state and federal government zooms past 50% of the GDP. They are at 43% of GDP today and rising at a geometric rate. 
     Then we’re Greece.  No  amount of printing, whether its the ECB shoveling Euros into the black hole of Greece or the Fed shoveling trillions into the black hole of our deficits will stave off disaster. Greece, Spain, Argentina and Venezuela are perfect examples of what will come our way.
     Crap will hit the fan.   At that point in time there’s no way anyone will be able to say we are not  past that terrible point.  Currency collapse, debt destruction and hyperinflation (defined at 25% or more per year) will be this country’s fate.  The name of the country and our history are no immunity to the stark math of what is going on today and tomorrow.
     Anyone who wants to call me Gloomy Gus or dispute this is welcome to challenge my conclusions.  If I’m wrong, so be it.
     I can’t figure out how we get past this.   History is a harsh mistress and her course is pretty much a foregone conclusion unless some miracle happens.  I’m not optimistic on the latter

    • @ AGXIIK Your probably the first person to call me an optimist in a long time lol! I think I am strange in that I find all this financial information more riveting than a mystery Novel or good movie. The fact that the majority of Americans have their head in the sand is amazing to me. I am also amazed that many when provided with this information run away in terror instead of facing a problem head on. What happened to that American can do spirit? I guess it died with most Americans grandparents.
      As for my numbers. I think I was being conservative in my yearly deficit numbers. If we go into Hyperinflation by 2014(per John Williams) can we imagine >$100 trillion dollars US Debt? That seems pretty scary.
      I remember in High School learning about Germany’s Depression and saying to myself how could people be so stupid. I remember hearing about Gold way back then, because the German Jews had it and it helped them preserve their wealth, but by doing so this caused others who didn’t have it to hate and despise them. While many starved the German Jews were sitting pretty. I said even back then (22 years ago) that most likely in my life time I might live through a depression and to be ready. And as far back as 1988/9 WW3 has been on my mind thanks to my first encounter with a Nostradumus Video.
      If your Gloomy Gus I am Depressing Dan! lol. But I dont see myself as depressing because I am just bringing to light what seems obvious to me.
       

    • Americans still have the can do attitude(well some of them) but government regulation and bureaucracy smothers them. Start a new business? The paperwork will stop 99% of the people now plus it will eat most of your startup cash getting all the permits, pay all the fees and taxes…

  5. Wow  Stacker X
     You’ve been considering and thinking about this for 22 years.  That’s a long waking nightmare.  I’ve just started getting my brain wrapped around this a few years ago and this keeps me awake at night (and posting like a fanatic)
      Two phrases come to mind   I’ll paraphrase them
    You can ignore the math but the math won’t ignore you
    You can ignore the math but it doesn’t make it any less real.
    If we went back to 1982 and started with a line graph charting the growth of the federal debt for 30 years, taking even a modest $150 billion a year, the arithmetic line of the cash accounting system of federal deficits would bring us to about $5 trillion, roughly 30% debt to GDP.  That’s affordable.  We started in 1981 with a debt of $900 billion which would have ramped to $5 billion.
    In reality the debt grew exponentially, and in some ways almost on an Order of Magnitude scale.  The cash accounting system never works with debt since it fails to account  the compounding of the old debt PLUS new debt.   Pat Fields coaches me on that subject and I am probably still missing a factor or two.
    The last 30 years showed a 16 fold increase in national debt but  with GAAP rule accounting that’s showed clearly  within another 30 years, scarcely larger than  one generation of Americans, the true amount of debt is $220 trillion. 
    Booyah!!!  Hi kiddies, here’s your father’s debt.
     Your calculations are much more likely  to hold true since the exponential growth of GAAP debt will become reality as all those due bills for promises in Social Security, Medicare, Obamacare are presented for payment.  2022 is only 10 years from now.  A large chunk of that $220  trillion will be laid at the feet of a much poorer,  younger generation.  These calculations don’t even take into consideration inflationary trends since the government always computes based on static models. The government tells us 2 plus 2 equals 4.  This math says 2 squared plus 2 squared equals Oh Crap.
     Hence the reason that a $10 hammer or $20 military toilet seat ends up costing $600   Lol—sort of.

    • @AGXIIK I posted the video that intrigued me about WW3 in the Tin Foil Hat Club Forum. Honestly I was intrigued and remembered the video and only remembered a few bits and pieces I bought a book on Nostradumus back in 1993 to do more research. Then 1994 World Trade center attack happened then I began to become more observant. Thinking something would go down at the turn of the century Missile wise (always remembered the 45 degree Nostradumus Quatrian). Deciding back then I didnt want to work in NYC (I live in NJ). I actually was offered a job in 1999 to work in the World Trade Center as a web designer but I turned it down. Dodged a bullet I guess ;)
      When the Twin Towers fell I immediately thought 30 minutes into the disaster that Osama Bin Laden would be named as the Mastermind. They were building him up for years. When Bush waged war with Afghanstan I said the US would go bankrupt as a result. Knowing nothing back then about finance, economics or Gold.
      Then around 2000 I saw it again on TV and recorded it. Then I started thinking about it again. between 2001-2003 I did nothing but read up on alternative media(conspiracy) then after 2004 I began to read up on Real Estate investing(first), Stock Market and Precious metals(around 2006). Now just waiting for Shit to Hit the fan.
      My guess going forward from all the shit that I have seen iand read is very Similar to Gerald Celentes forecasts actually it is pretty eerie. But for me it is all planned years and years in advance.

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