Get out of the US dollar before it is too late!
July 16, 2008 · By Charles Anthony
Anybody who wants to preserve any savings they may have should get out of the US dollar. Buy gold or silver instead. Buy anything that is real. If you want stocks, buy something that everybody wants — like beer. If you want a fiat currency, I would recommend converting into Euro because that place seems to have a predictable track record and more of the oil suppliers are moving towards the Euro too — that is a good sign.
The central bankers are cluelessly scrambling as if they are powerless. Macroeconomics is pretty simple: in the short term, printing money redistributes wealth but in the long run, screws up the economy while the poor suffer from price inflation or interest rate hikes. Statesmen just try to find creative ways of hiding their fault. If they repeat things long enough, everybody gets suckered into believing them. Here is the best ruse:
The root of the economic problem remains the fallout from the imploding housing bubble.
No!! The root of the economic problem is the central banks printing money. To stay viable, the commercial banks had no choice but to make more loans available to consumers otherwise they would lose business to their competing banks. It is unfortunate but that is how a market economy works. Market economies are great except for when governments distort them. The governments and the central banks are at fault. The housing bubble is a natural result of the monetary policy.
Inflation is rising, American banks are going bankrupt and here is the most frightening thing: acting upon this knowledge is soon becoming a crime.
Some people are rushing to withdraw their money for fear of losing it. Well, it does not really matter whether they withdraw their money now or not. If their bank suffers from a run, they will get their money back through FDIC protection:
A day after reports of losses by regional banks, causing some depositors to pull their money out, Mr. Bush held an unscheduled news conference at which he felt compelled to remind Americans that their deposits were insured up to $100,000.
“My hope is that people take a deep breath and realize that their deposits are protected by our government,” the president said.
— by printing more and more money. The sad truth is that people who pull out their dollars early will still lose in the end because of inflation if they keep holding dollars. The inflated money supply will debase the value of the currency anyway.
As for Canadians specifically, go vacation down in the States. Right now, taxes and the price of gasoline are still lower there.
“If you want a fiat currency, I would recommend converting into Euro because that place seems to have a predictable track record and more of the oil suppliers are moving towards the Euro too — that is a good sign.”
You do realise that the predictable track record that Matthew was talking about in the link you’ve used was the “reincarnation of the sixth empire that the Bible says will come about again in the last days to serve as the political vehicle through which the antichrist will rule the world.”?
Time to invest in lamb futures, surely?
Invest in Eurabia? Never. USA, USA!
Mr. C,
I was trying to subtly suggest a different way of looking at European geopolitics without being as harsh as you guys have been.
“Time to invest in lamb futures, surely?”
Since you ask, I would say YES if your only other alternative was the US dollar. However, lamb futures are not a fiat currency. In a reflexive need to be ornery, you failed to understand what I wrote and what you quoted yourself. Buying a derivative does have a certain fiat element to it, mind you. I will give you that much.
I assumed that “reincarnation of the sixth empire that the Bible says will come about again in the last days to serve as the political vehicle through which the antichrist will rule the world.” was in some way talking about the reincarnation of the sixth empire that the Bible says will come about again in the last days to serve as the political vehicle through which the antichrist will rule the world.
In the bible there is a book of revelation.
I believe that it was this portion of the bible that Matthew was refering to.
In the book of revelation, there is a lamb. I don’t really want to give away too much of the plot, but the lamb, well it turns out it’s quite important.
And that’s why I suggest buying lamb futures.
Hmm, to tell you the truth, I’d seriously consider buying US Treasury Bonds. The US dollar is down, but I’m willing to speculate that it’ll once again appreciate relative to the CDN dollar, which would net a good profit over the mid-term to long-term.
Do you have any proof the US Federal Reserve is just printing money to counter a recession?
My but the trolls sure like to wilfully miss the point don’t they?
Myself, I wouldn’t invest in Europe. Its financial base is no stronger than America’s and whether these unions are happening or not, the Paris riots that lasted nearly a year, and the growing civil unrest in nearly every part of Western Europe that has been building with the continued influx of Muslim immigrants is a bombshell I’d not care to bank on for my future.
As I said a few weeks ago, Gold, Silver, or Currency are all vulnerable. The fact is societal, national, or worse cultural collapse will render valueless all of those things. Human capital is the only thing of value in those conditions - and the continued efforts of the elites to convince us all that having children is a waste is just cutting us off from the only things that could get us through tough times.
As for the reality the the government is printing money and causing inflation - it is well documented that the USA detached its currency from the gold standard back in the 30’s. Ever since then it has needed a continual level of inflation to offset the increasing levels of public debt. Detaching the currency from gold meant that Fort Knox was no longer necessary - there was nothing needed to back the currency except America’s reputation as a good investment. Now that this is ending, they are reaping the whirlwind.
Detaching the currency from gold means that when a bank wants to extend a loan, they don’t need to have assets of equivalent value on hand to prove they have the money to lend. They “create” money by fiat - they don’t lose any money by making a loan, nor do they lose access to assets. It used to be if you wanted to lend someone money, you had to have the money to lend. That hasn’t been true for banks since the 30’s. That is what causes inflation and that is what Charles means by “printing money”.
Canada does the same thing, so we’re just as vulnerable.
BTW… on the “Bible streak” that Matthew started - the Bible doesn’t identify any distinct role for America in the geopolitics of the end-times. Therefore you might say that the Bible predicts the fall of America before the ascendancy of the antiChrist. Signs like a re-forming Roman Empire and peace in Jerusalem are posts along the way, the same as America’s collapse.
As an aside, I don’t think America will collapse entirely - ie. descend into anarchy. But I think they will subside as a world power - much like England has since its peak of power in the late 1800’s.
Greg,
The Fed bailed out BearSterns earlier this year, has just bailed out IndyMac days ago and now there is talk about bailing out both Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. This is all happening right now.
To be precise, I am not saying that the motives of the Fed leaders are to counter a recession.
Yes, i know they’re bailing out these companies, but corporate bail outs are not the same as printing money. Or am I missing something here?
If the Federal Government bails out Fanny Mae & Freddy Mac they together have a total of 5 trillion $’s in the red. That would be added to the national debt of 9 trillion for a whopping 14 T.
No wonder world markets are shedding US currency which is internationally used for oil transactions. Not a good scenario.
I remember reading a year or so ago that China bought billions of US dollars on a regular basis to keep the economy going.
If the US collapses financially it will drag most of the world with it. So international markets should think twice but when panic sets in…
Canada will hurt but it’s commodity based economy will keep it afloat.
[...] Charles’ comments about impending doom on the USA, and his recommendation of Europe as an alternative place to invest, I was gratified to [...]