Dollar Implosion Imminent

Originally posted by NOTurTypical
reply to post by mnemeth1

 

I've been hearing about the "imminent" implosion of the U.S. dollar for over 5 YEARS now. To me, it's almost to the point of lumping these reorts in the same lump as reports from the "Galactic Federation" who say their spaceship is coming to take all the faithful believers away.. imminently.

1. The US is in violation of the Guidotti-Greenspan rule

2. The trend of bond auction failures has been accelerating

3. The last bond auction saw a whopping 30% direct takedown and only 24% indirect participation - a total failure

4. The US is holding 5 trillion in off-balance sheet mortgage backed securities (fannie/freddie)

5. The US has over 100 trillion in unfunded SS and Medicare liabilities.

6. Large amount of evidence suggests precious metals EFTs are being manipulated and would not be able to meet gold obligations during a run.

7. Unemployment has not declined

8. Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt + 1.5 trillion of deficit spending. Where's that money going to come from?

9. Housing prices are still 50% over 1999 levels in the top 20 cities

10. The dollar is doomed - doooooooomed - game over have a nice life.

Let us also not forget that the US debt is the highest it has ever been in history, yet interest rates are at historical lows. This violates every principle of common sense. As more debt is issued, rates should rise in proportion to the risk of default. The bond markets are a joke.

Also, the federal government is doing NOTHING to reign in spending. They are binging like drunken sailors and are still pushing 2 enormously expensive wars of aggression.

Let us also not forget that Lord God Bernanke has no way to remove the excess liquidity in the markets.

This country is F**KED - Bernanke has destroyed us.

reply to post by mnemeth1


yeah just because it hasnt happened yet doesnt mean it isnt going to happen... i bet people said the same thing when hitler first came to power. "oh this guy is gonna destroy europe" "yeah right its been 5 years now and it hasnt happened".... its not a matter of if, its a matter of when...

I also might add that since the Fed is out buying up treasuries and the US is violating the Greenspan rule, its clear that its AAA rating is a complete and utter farce.

Thus, Moody's must be considered to be in on the fix and can not be relied upon for accurate debt ratings of ANY financial institution.

Moody's has made itself irrelevant.



[edit on 12-3-2010 by mnemeth1]

1. The US is in violation of the Guidotti-Greenspan rule

2. The trend of bond auction failures has been accelerating

3. The last bond auction saw a whopping 30% direct takedown and only 24% indirect participation - a total failure

4. The US is holding 5 trillion in off-balance sheet mortgage backed securities (fannie/freddie)

5. The US has over 100 trillion in unfunded SS and Medicare liabilities.

6. Large amount of evidence suggests precious metals EFTs are being manipulated and would not be able to meet gold obligations during a run.

7. Unemployment has not declined

8. Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt + 1.5 trillion of deficit spending. Where's that money going to come from?

9. Housing prices are still 50% over 1999 levels in the top 20 cities

10. The dollar is doomed - doooooooomed - game over have a nice life.

Let us also not forget that the US debt is the highest it has ever been in history, yet interest rates are at historical lows. This violates every principle of common sense. As more debt is issued, rates should rise in proportion to the risk of default. The bond markets are a joke.

Also, the federal government is doing NOTHING to reign in spending. They are binging like drunken sailors and are still pushing 2 enormously expensive wars of aggression.

Let us also not forget that Lord God Bernanke has no way to remove the excess liquidity in the markets.

This country is F**KED - Bernanke has destroyed us.

What is #1?
#2 & #3 the bonds are still being bought, succesful, no, but not a failure
#4 Its a guaruntee not outstanding debt
#5 how far in the future does it predict? 1year, 30yrs, 50yrs? how well funded are your future liablities, go hire a actuary and find out
#6 I am not a fan of ETF's either, mostly because they are a crappy investment and not understood by the people that invest in them. PM ETF's are the most complicated.
7# I agree
8# pocket change, 2 and 10 year rates will rise, flattening or even inverting the yeild curve. No private individuals will go 30, but once the midrange rates come up the trillions of sideline money will come
#9 So they are, 80% of the population still are happily employed. Guess where the best paying jobs are, in the biggest cities. Forclosures may go up, but home prices are gonna stay close to where they are
#10 the dollar is (de-facto) backed by oil, its not going anywhere until we run out of oil.

Originally posted by unityemissions
reply to post by mnemeth1

 

You seem a bit too sure of this for me to take you seriously. You don't say this is probable, you say it WILL happen. I must ask, who would want this exactly? If it's mad max then it's anarchy. That means the government collapses. How would the government becoming non-existent benefit the government? Or are you referring to the ruling elite? I'm just trying to understand your reasoning.

Seems like this question arises a lot; who benefits. The other thing sometimes asked is, if it is engineered - what is the mechanism, how is it done.

Ok, here is an attempt to answer those questions.

First and foremost, one needs to understand that western governments are under direct control of financial and corporate interests - they always have been. While their activities do not directly hinder the aspirations of the controllers, then they may at their leisure enact policy to help their citizens - however, at all times their overall strategies and membership is controlled and directed by the financial and corporate controllers.

While I have no great interest is detailing the entire history of how this situation arose, interested people should look at the East India company and how it usurped control of the British Empire, established the Bank of England. Then controlling its armies and navies it extended its influence throughout Europe and the world through the institutions of finance.

Having conquered Europe financially, it extended its grasp into the new world of the America's through the Federal Reserve system, and the globally integrated system of central banks.

So, without delving into this in great detail - it is necessary for people to grasp those concepts in order to understand the current economic situation, how it was engineered, why and what is the end goal.

If you are unable or unwilling to accept that it is indeed the financial oligarchs who control the western governments, and of particular interest of course is the USA - then understanding the context of the economic situation becomes basically impossible.

Without that understanding, then the whole current situation dissolves into a series of unfortunate accidents, poor decisions and haphazard occurrences.


The Mechanism of Debt.

If we have a look at Greece, Dubai and a few similar nations - here is the story of how they were reduced to insolvency, by predatory banks - Goldman Sachs, JP Morgan etc - the usual suspects.

Basically the banks came to them and offered loans for whatever purpose the sovereign needed. Instead of making a normal loan against the nations budget, and on balance sheet - they create a holding company to do the project, and lend the money to that company.

Because that company is brand new - has no assets or income, then the nation guarantee's the debt. In effect then the nation is on the hook for the total of the loan, but on their balance sheet - they show nothing, a big fat 0. In this way, nations could increase their debt far beyond their ability to pay - and still show a clean balance sheet.

When the global contraction began - then the project companies fail, and the banks return to the sovereign to reclaim the debt.

This was one mechanism used to put nations under the control of the banks - their are others used - they use a more directly corrupt method in nations where the rule of law is lax.


The Mechanism of Global Contraction.


There are a variety of methods that were used, I will deal with some of the better known ones.

Mortgage backed securities (MBS), this fraud created massive losses.

There are three inter-related mechanisms, these are; reduced, missing or ignored regulation, low interest rates, securitization followed by fraud in setting incorrect ratings on low quality instruments.

1. Regulation

Banks were able to lend to high credit risks without due diligence.

They were able to extend their leverage far beyond tolerable levels.

Due to competition, all types of lenders competed to find more borrowers - lending standards were ignored.

Loans were issued at initial low rates, with latter increases in rates that the lender knew would cause default.


2. Low interest rates.

Because interest rates were so low, banks were able to access large volumes of credit for low cost. This means they were able to increase their own leverage beyond safe levels in order to get more borrowers.


3. Security and rating fraud.

By creating complex instruments based on mortgages, lenders were able to apply AAA ratings to very poor quality paper - fraud. This allowed them to sell this paper (MBS's) to governments and investors across the world, who would otherwise never have touched it.

These securities were highly leveraged by their nature. This multiplied the amount of paper that could be sold - so from a pool of a couple of hundred billion, trillions in securities were created.

A normal mortgage might be levered 10:1, but after this process these securities may have been leveraged up to 50:1 and higher. This meant a small fall in the price of the underlying real, estate, or some small percentage of defaults on loans would wipe out all the value of the security.


Creating the Conditions for Failure.

These conditions were created by use of the oligarchs control and influence over the governing bodies, and particularly the Federal Reserve with which they could adjust economic activity up or down at will by adjusting interest rates.

When interest rates are held low for a prolonged period of time, economic activity increases - debt and therefore money expands into the system. At some point upper limits of infrastructure and productivity is reached, and there is a downturn - this is expected and normal.

If business and finance are invested in production, and within reasonable levels of leverage - then this downturn results in a moderate contraction of the economy - and some businesses will fail and some losses will accrue to lenders.

If leverage is extremely high, then small downturns are magnified by the level of leverage - so in a highly leveraged economy (one in which there are very high levels of debt) then a downturns impact is magnified - possibly many times over.

Due to the lack of regulation (engineered by the banks through direct influence in government), and the very low interest rates (set arbitrarily by the oligarchs through the Federal Reserve) - the conditions for a major downturn had been created.

Because a great deal of debt had been exported internationally on AAA rated financial paper - this downturn impacted major financial institutions throughout the world.


Who benefits?

This is a question that can be simply and easily answered.

The oligarchs own financial institutions immediately socialized their losses through banker bailout programs. Their losses were immediately transferred to a population who should have rejected these measures as fraud and theft.

At the same time, the Federal Reserve bought up billions in mortgages at basement prices. As they default, the actual real estate ownership is pssed to the securer - in this case the Fed, or Fannie and Freddie.

This real estate is being held in inventory - and not resold - this real estate is at bargain prices and represents a massive loss of wealth to the common people - and a huge opportunity for the oligarchs to seize something of value in return for their worthless pieces of paper.

It cannot be stated clearly enough - fiat paper money has no intrinsic value, but when it can be redeemed for real assets such as commodities or real estate - then those who can print and control it are able to exchange something of no value for something of true value.

The other benefit is that entire populations can be indebted, through their sovereign - the government - so that taxes paid by the population are returned to the banks. This money is never used to improve the life of the common people - it is stolen to pay debts incurred on their behalf.

Most commonly, these debts relate to projects that were never completed - spending that in no way benefited the population.

By managing the level of debt in a population to a very high level - the financial oligarchs simply get to steal all the productive labor of the people - diverting it to their own interests and society as a whole suffers a loss of living standards and quality of life.

In this way, the oligarchs are are to reduce the level of education of the general population - and keep them purely involved in the pursuit of basic needs - such as food, shelter and clothing. By subjugating them in this way - they remove their ability to rebel against the system in which they enslaved.

Additionally, through the use of integrated systems and high density living, the oligarchs control access to basic necessities such as food, water and electricity. By causing shortages and high expense in these basics they are able to thoroughly control the population. If there is public dissent of protest, the interruption, or even threat of interruption of one of these services is enough to re-establish their control.


The Non Existence of Debt.

I also make the explicit note - the fiat money created upon which the debt was incurred - had no value, and was created out of nothing. Nothing of value was tendered by the bank in the exchange that lead to the debt, it is purely fraud.

The correct and proper response is for the population to repudiate the debts of its government - refusing to pay. Then implement an entirely new monetary system, based on something of value such as gold, and cut itself off entirely from the central banking systems.

reply to post by Amagnon


Thank you! I think that post deserves an applause. Read it once already, and will come back and take notes to study any concepts I'm not aware of.

quoted from Amagnon:

The correct and proper response is for the population to repudiate the debts of its government - refusing to pay. Then implement an entirely new monetary system, based on something of value such as gold, and cut itself off entirely from the central banking systems.

Yes. remove the central banking system.



[edit on 12-3-2010 by wdkirk]

reply to post by jacksmoke


All of your arguments are irrelevant or dismissive of the situation except for this one.

"#10 the dollar is (de-facto) backed by oil, its not going anywhere until we run out of oil."

To which I counter:

90 pct of Iran oil income in non-U.S. dollar (which is why we are hell bent on attacking them)
economictimes.indiatimes.com...

The world’s biggest energy supplier may eventually begin selling oil in rubles, Finance Minister Alexei Kudrin said on Jan. 22.
www.businessweek.com...

Right now we have a gun to the worlds head forcing them to buy our worthless debt if they want to continue having an oil supply.

That will undoubtedly change here shortly.

And you can expect global war, along with a completely destroyed dollar, when it does.

As the US continues its debt death-spiral, more and more nations will demand oil outside of the dollar, and the sellers of that oil will be more than happy to oblige them.






[edit on 12-3-2010 by mnemeth1]

Originally posted by mnemeth1

Originally posted by NOTurTypical
reply to post by mnemeth1

 

I've been hearing about the "imminent" implosion of the U.S. dollar for over 5 YEARS now. To me, it's almost to the point of lumping these reorts in the same lump as reports from the "Galactic Federation" who say their spaceship is coming to take all the faithful believers away.. imminently.

1. The US is in violation of the Guidotti-Greenspan rule

2. The trend of bond auction failures has been accelerating

3. The last bond auction saw a whopping 30% direct takedown and only 24% indirect participation - a total failure

4. The US is holding 5 trillion in off-balance sheet mortgage backed securities (fannie/freddie)

5. The US has over 100 trillion in unfunded SS and Medicare liabilities.

6. Large amount of evidence suggests precious metals EFTs are being manipulated and would not be able to meet gold obligations during a run.

7. Unemployment has not declined

8. Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt + 1.5 trillion of deficit spending. Where's that money going to come from?

9. Housing prices are still 50% over 1999 levels in the top 20 cities

10. The dollar is doomed - doooooooomed - game over have a nice life.

Let us also not forget that the US debt is the highest it has ever been in history, yet interest rates are at historical lows. This violates every principle of common sense. As more debt is issued, rates should rise in proportion to the risk of default. The bond markets are a joke.

Also, the federal government is doing NOTHING to reign in spending. They are binging like drunken sailors and are still pushing 2 enormously expensive wars of aggression.

Let us also not forget that Lord God Bernanke has no way to remove the excess liquidity in the markets.

This country is F**KED - Bernanke has destroyed us.

That's a nice list you got there, but you missed my entire point. That point was I'm sick of hearing about the "IMMINENT" collapse of the U.S. dollar.

I've been hearing/reading about this "imminent" collapse for going on 5 years now. Perhaps you and I have a different definition of "imminent" we are working off of?

[edit on 12-3-2010 by NOTurTypical]

reply to post by TheCoffinman
Oh, okay then, well then let's start sounding the alarm that the Sun will supernova.

Originally posted by mnemeth1

Originally posted by unityemissions
reply to post by mnemeth1

 

I got a question regarding maxing credit cards to buy physical gold/silver. Wouldn't the debt roll over into whatever new system is formed in one way or another?

dude, when the dollar goes, it will be Mad Max Beyond Thunderdome time.

No one will give a shat about paying back debt.

Lets say I take out 10,000 in credit debt and buy 9 gold bars.

Then the dollar implodes.

I sell 1 gold bar for 100,000.

I now pay back the 10,000 i just spent.





[edit on 11-3-2010 by mnemeth1]

keep the gold bars.. there will not be anyone left to pay it to... but you are right the so called riots in LA and other places are going to be nothing more than a popcorn fart compared to what is waiting...

bunker down people and stockpile goods you need and goods you can trade.... because it is right there at the door

Originally posted by NOTurTypical

I've been hearing about the "imminent" implosion of the U.S. dollar for over 5 YEARS now. To me, it's almost to the point of lumping these reorts in the same lump as reports from the "Galactic Federation" who say their spaceship is coming to take all the faithful believers away.. imminently.

I've been hearing/reading about this "imminent" collapse for going on 5 years now. Perhaps you and I have a different definition of "imminent" we are working off of?

I figure less than a year, may be 2 tops before the whole thing detonates.

Its going down the crapper as we speak.

Bond auction failures ARE an imminent threat to the dollar.

I don't know how much more imminent you can get.

Should I just wait until after the dollar collapses before I start the warning cries?



[edit on 12-3-2010 by mnemeth1]

reply to post by unityemissions

Why must their be anarchy when the dollar collapses?

There doesn't. And there won't.

The Dollar is relatively new in the US .. The form we use has only been around for several decades. The US has had many other currencies, and even at one point every state had her own currency.

The US has never seen "mayhem" during a currency change.

The World has never seen mayhem during a currency change.

DEBTS do not change in a currency change.. maxing out credit cards to buy Gold isn't exactly a safe thing to do.

Currency collapse (complete economic collapse) is not probable either.. but assuming it does happen I hardly doubt everyone will take to the streets and start shooting one another.

Originally posted by mnemeth1

Originally posted by NOTurTypical

I've been hearing about the "imminent" implosion of the U.S. dollar for over 5 YEARS now. To me, it's almost to the point of lumping these reorts in the same lump as reports from the "Galactic Federation" who say their spaceship is coming to take all the faithful believers away.. imminently.

I've been hearing/reading about this "imminent" collapse for going on 5 years now. Perhaps you and I have a different definition of "imminent" we are working off of?

I figure less than a year, may be 2 tops before the whole thing detonates.

Its going down the crapper as we speak.

Bond auction failures ARE an imminent threat to the dollar.

I don't know how much more imminent you can get.

Should I just wait until after the dollar collapses before I start the warning cries?

Familiar with the boy who cried wolf fable? Kinda the direction I'm going with this. I was upset the first, second, third, fourth, fifth, times I heard that the US dollar was going to collapse. This was years ago.

Then I was upset about the "Bank Holiday" that was going to go down. Which didn't. See where I'm going with this?? I'm tired of trying to prepare for the dollar collapse that's imminently right around the corner... which NEVER comes. So now, 5 years later, I'm jaded, I don't care anymore. They "boy" has cried "wolf" tooooo many times.

reply to post by NOTurTypical


Exactly! I notice the OP is fairly new here, so maybe he hasn't been through all this doom and gloom time and time again already. I mean, in reality the US went bankrupt decades ago. You could pin it to '71 or around the turn of the century, or many other dates.

The truth is, the game is just that...a game. The game masters keep it flowing one way or another. It will crash when they want it to. Not a moment sooner.

I'd like to respond to a couple of issues that people have raised on here.

One is; what the hell does 'imminent' mean - we have been waiting forever for a dollar collapse, when, if ever will it happen?


There are two opposite and gigantic forces at work in terms of monetary balance at the moment. Deflation and inflation.

The forces on both sides of this equation are of monumental size, never before seen in the USA - but not novel to the world.

Without wishing to get into an argument regarding definitions I will explain both of these forces in simple terms.

Inflation is an increase in the money supply, deflation is a reduction in the money supply. Inflation usually represents a decrease in the value of money, deflation an increase in the value of money.

The money supply for the US has been greatly expanded by the Fed through the QE and stimulus programs - and the monetization of Fed debt - which basically means the Fed buys treasuries directly, without on-selling them.

This liquidity is then injected into banks, and should then be expanded by 10 or more times into the real economy through loans. The problem is that instead of making loans - the banks are just using the money to gamble on markets and financial paper (mainly bets, not related to production).

This means that the money is not being expanded - so the liquidity is not being expanded into the productive economy, but is inflating the stock market(s) and going into other investment vehicles.

So, the stimulus package effect is being limited by the banks. This behavior could have been predicted by anyone with even a cursory knowledge of what was going on - that it was overlooked by Bernanke is preposterous - so we can assume that it was simply a way to inflate markets and give his mates some extra gambling money.

The stimulus has had SOME effect, but its effects will wear off rapidly, and no new investment in productive enterprise seems to have occurred, so we can conclude that no lasting improvement has resulted.

So the Fed monetary expansion seems to have produced little inflation so far.


In the other corner from inflation we have deflation. Deflation occurs due to debt destruction, and from money not being put to use - low velocity of money.

Credit is a form of money, specifically it is the form of money created by banks, when a loan is defaulted on, the bank then 'writes off' the bad loan - this destroys money - this is deflationary.

Another cause of deflation is that money simply does not move into the normal economy - that is banks hoard the money, or use it for speculation - this lack of money flow is deflationary.

At the moment there seems to be a balance between defaulting debt, lack of lending and new money creation by the Fed. Whether or not there is inflation in the US seems to be controversial.

Most money is normally created by banks from loans - but in a contracting economy, lenders are unwilling to make loans, so the Fed is replacing the normal mechanism of money creation.

The problem with the Fed increasing the money supply, is that the debt is socialized - and is not being loaned against productive enterprises.

This means that it does not represent investment in future repayment, for example a loan to an expanding business would represent increased ability to pay - ie. increased economic activity - rather it is 'dead' money, that simply attracts interest with no increase in ability to repay.

The other problem with stimulus is that it may not be assigned against debt, so without repayment plan - the money just ends up sloshing around with no mechanism to withdraw it.

Because the US debt is so high, it cannot be repayed by its own economy - you can't raise enough taxes to pay the US debt back. Massive spending cuts might do it.

This means that a policy of inflation is likely to be undertaken by the Fed - this causes debts to be worth less in real terms, so they can be payed back with printed money on the cheap.

The problem with this is that at some point this may cause a loss of confidence in the dollar.

Apart from the technical factors effecting inflation and deflation - there is another force that can be far greater - that is demand for money.

The demand for money is purely subjective - it is underpinned by the confidence that people place in it - if the US dollar suffers a loss of confidence among its users - it may suffer immediate inflation as people sell it to obtain other preferred assets or currencies.

There are many signs that international confidence is being lost in the US dollar.

The US dollar today is not backed by the same level of industry and export power that it has been in the past.

In fact 40% or more of the US GDP is dependent on finance, and those financial institutions have massive unrealized losses - I think this is leading to a loss of confidence - if the Fed policy of monetization continues, this further erodes confidence.

China holds a lot of dollars - but seems to have lost interest in buying more - requesting in fact future sales of US debt to China be priced in Yuan.

It seems to me that the dollar is likely to undergo a slow decline - this will be interupted by short bear market rallies as it is over sold - but it is in secular decline.

At some future point, the big dollar holders will begin to sell in earnest - at that point the dollars fall will be spectacular.

As to when this will occur - that is not easy to answer. Previously I felt the dollar would be at 50% of its current value - the decline has been slower than I anticipated.

I think it will take a while yet - possibly a few years before the critical point is reached.

A lot of people seem to think its "all or nothing." That is, we either see an endless string of double-digit gains and McMansions free for all, or else its mad-max-beyond-thunderdome time. In reality, life is complex and there are zillions of possible choices in between.

There is plenty -- PLENTY -- to suggest the US is in for a protracted period of economic unpleasantness, but this doesn't mean everyone will be reduced to using little shavings of silver to barter for hunks of stale bread while squatting in burned-out husks of empty malls. Think NUANCE here people. Some places will be better off than others. Some individuals will thrive and continue to innovate even if most do not. Please don't automatically jump to cartoonish black-and-white extreme conclusions.

Spain hasn't been the most powerful nation on earth since the 16th century or so, but millions continue to live pleasant and satisfying lives there, and few would argue with the statement that the average Spainsh citizen is better off now than 450 years ago.

[edit on 3/12/10 by silent thunder]

Originally posted by NOTurTypical
Familiar with the boy who cried wolf fable? Kinda the direction I'm going with this. I was upset the first, second, third, fourth, fifth, times I heard that the US dollar was going to collapse. This was years ago.

Then I was upset about the "Bank Holiday" that was going to go down. Which didn't. See where I'm going with this?? I'm tired of trying to prepare for the dollar collapse that's imminently right around the corner... which NEVER comes. So now, 5 years later, I'm jaded, I don't care anymore. They "boy" has cried "wolf" tooooo many times.

Well I'm not sure who you were listening too, but the facts are speaking for themselves in my opinion.

Austrian economics is poor at given the exact time an event will occur, but its clear to anyone with half a brain that given our course of action a dollar catastrophe is bound to occur.

Given that the bond auctions are failing right now, I can't see it being too much longer before the plug is pulled.

I'm figuring around a year or so.


[edit on 12-3-2010 by mnemeth1]

Originally posted by silent thunder
A lot of people seem to think its "all or nothing." That is, we either see an endless string of double-digit gains and McMansions free for all, or else its mad-max-beyond-thunderdome time. In reality, life is complex and there are zillions of possible choices in between.

There is plenty -- PLENTY -- to suggest the US is in for a protracted period of economic unpleasantness, but this doesn't mean everyone will be reduced to using little shavings of silver to barter for hunks of stale bread while squatting in burned-out husks of empty malls. Think NUANCE here people. Some places will be better off than others. Some individuals will thrive and continue to innovate even if most do not. Please don't automatically jump to cartoonish black-and-white extreme conclusions.

Spain hasn't been the most powerful nation on earth since the 16th century or so, but millions continue to live pleasant and satisfying lives there, and few would argue with the statement that the average Spainsh citizen is better off now than 450 years ago.

[edit on 3/12/10 by silent thunder]

Mad Max time happens when hyper-inflation hits.

Currency changes when there is no hyper-inflation are relatively tame events.

It is the act of destroying that currency through inflation that causes the chaos and suffering.

We are headed that way.

As I said earlier, there does not have to be chaos. However our criminal government is ensuring chaos is bound to occur.


[edit on 12-3-2010 by mnemeth1]

reply to post by mnemeth1


If we are heading towards hyperinflation, it won't be for at least a few years. It just doesn't happen over night. We were heading for a deflationary spiral, the bailouts countered that, and now we're heading into inflation. First, you will have to see double digit inflation before counting on hyperinflation to be likely. We're just not there yet.

Basically, if your understanding of imminent means within the next 3-20 years, I'd agree. Since you're saying within a year or two tops, I'm saying it's highly unlikely.

[edit on 12-3-2010 by unityemissions]