Just because the US dollar will be worth bugger all, if you create another fiat currency like the americo or watever it's called the debt is reset and the dance begins all over again. If they just make a transition to get people swapping US dollars for Americos, then you control the transition into a new currency. We're not screwed. It just might be hard if you want to maintain a luxurious lifestyle and want lavish cars and houses! Life is only as hard as you want to make it. Il return to my previous comment- silver doesn't pays bills. Cash does. Don't forsake your nations currency just yet
Which is why the US will lose influence and their currency will lose the reserve currency status. (Think WW2 Germany. You can keep releasing new currencies, but it won't fix the problem.) I suppose when a new "stable currency" albeit FIAT or PM backed comes around, then I'll consider exchanging my Precious. Also when the stock market/society/everything comes back to normal. But even when this new "stable currency" comes online, it'll still be a while before society catches up. The only reason I'm investing in PM's is because, well, what else is there to invest in? Everything else is in a complete shambles. Basically all the money I'm saving into Silver, the day-to-day stuff in cash
Yeah.. Pms seem the default position, but that is wat makes me concerned. Seems too obvious and the whole "if it seems too good to be true, it probably is." im keeping my eyes and ears open as complacency will turn your gold or silver into a pile of drugs. Worth a bundle, but might get you in hot water if you're caught with it. Haha.. Yeah new currencies don't fix the problem, but what did most of Europe do? They went to the euro- fiat. What did the Germans do after the mark? More fiat. Does anyone on here actually think we will go back to gold standard? I think it's too tin foil hatted for me. I predict America will admit alien contact before they give up their position and revert back to gold standard. iMHO they have too much riding on not going back to gold.
By the way, I think gold has more value in vaults with fiat to compare it to indirectly, than to use it as a direct currency or attached to a currency. Who's offering a way out? Wats the alternative?
Il simplify - what's the alternative to fiat? Are we going to divvy up the gold? oR keep it in vaults and not risk the paint coming off the tungsten bars lol.
Look no further than 40 years ago when we weren't using the FIAT system. We'll have a currency backed by some kind of asset so it at least is worth SOMETHING. We could peg a certain amount of gold to a currency. So each $100 bill can be exchanged for gold if you wanted to exchange it. That was the old system and while it wasn't perfect, it was honest. You can't print gold (although u make the case of Tungsten lol) But hell, it doesn't even have to be gold. It could even be partially backed by land. As long as that thing was real and had some kind of intrinsic value. That's my prediction. A monetary system backed by Gold/Silver. Silver seems more likely at this stage since there's not enough gold to go round.
Silver is a commodity though... It's used for stuff.. And as a commodity it's price will fluctuate with the market. I think there is going to be less honesty in the market short term, not more. I think your guess is very optimistic. Remember that not all land is equal either.. Who wants to be part owner of a swamp or beach frontage? Tough isn't it! Too much riding on keeping the pretend system charade going on. They will work out a way to continue to convince the masses that paper is better than gold. Even when the shtf, the sheeple still won't get it. Dumb people don't get smart overnight.
As i said, it isn't perfect The only reason why we changed to the FIAT system when Nixon abolished the gold standard 40 years ago, is because America were going to default if they didn't. So the system did work - it's just that the world super power got their way. But what happens is that you set a value that silver will always be. Otherwise, the amount of silver you can exchange for paper varies depending on the price of the day. Land was a poor example. Dude, when people realise that their paper is worthless - people will scramble to hard assets by default. We're going to experience deflation in the short terms as things get bad, then hyperinflation when people realise that the paper is worth nothing! We're merely reliving history.
But during times of deflation, prices drop (deflation) so technically isn't their currency worth more?
What happens is that there's temporary deflation as things get bad. Then the Central Bank (in this case The Federal Reserve) say "Holy Crap! We need to print more money to fix this problem" - which is what causes the hyperinflation. Happens everytime. So far, the only solution to this debt crisis is to print more money, which makes absolutely no sense what-so-ever. You don't print more money when you have too much debt. It's lunacy. When the stock markets crashed in 2008? Print more money. We don't have enough jobs? Print. We can't afford to pay for the federal budget? Stuff budget cuts, Print!
great video, well done. I think I am even more impressed by the intelligent and respectful debate between yourself and PPSS. Great work guys, that is what these forums are all about - sharing information and all of us gaining knowledge. Had you asked me 4 months ago what type of currency system we need to move to, I would have said gold/silver backed. However, I, like PPSS, can also see the difficulty in moving back to this system. Logistically, it simply isn't that easy. Moving off a gold standard was easy, but when the US last confiscated gold and set its value they didnt have the major hurdle created by the internet and media allowing the population rapid access to a wealth of information. I agree unbacked fiats aren't working at the moment - something has to change. For one, our governments are irresponsible and corporations have too much power over them. I fear the next 5 years are going to be very tumultuous. Whilst I am doing what I can to try and be financially secure, it is more the inevitable downtown in the jobs market that worries me and would quickly erode that financial position.
Thanks. I think the important thing is that the new currency must be "backed" by something. The fundamental flaw with the FIAT currency is that it's technically only worth as much as the government tell us. It's only worth as much as the paper and ink it's printed on. The currency needs to be worth something. Otherwise you have the current system where governments and banks can print as much as they want, and corruption becomes strife as a result.
Agreed. But they can still make a gold backed system crooked. Nothing stopping the US claiming printing it unbacked. When was fort knox last audited? and who is to say we can trust the auditors. I think we would be better off with an independent basket of commodities or something. A yardstick that each currency is then measured against - but there is no physical trade currency. It is simply used to gauge the value of one currency compared to another. However I can see that going wrong also... Some have claimed on here a basket of currencies would work, but again, the US with their massive GDP would influence that. Found this to be an interesting read today, even if I don't agree to it all; http://www.zerohedge.com/news/doug-casey-how-prepare-when-money-dies
