The strength or weakness of the Euro is based on the US Dollar...
Based on the US consumer...As the US consumer caves in...the European economic zone which is dependant upon US consumers to keep their economy inflated...deflates.
The Euro is not going to take over as Global trade medium of exchange...
And the US Dollar did not take over as global trade medium of exchange from the British pound until the Crown system imploded 1929-1933 and then went through a bankruptcy reorganization 1933-1945...
They have reserves from selling more of their goods and services to the USA than they buy from the USA...
The US consumer is keeping the world inflated...As US consumers reach maximum potential...That will stop...and the world will implode...
Europeans are also in almost as massive debt as Americans and can't replace the USA as the demand of the world...
Demand will collapse and supply will have to be cut to sustain prices...Currently and for the past 6 decades demand has been inflating faster than supply...
Basically every contract in existence is based on there being more money in circulation tomorrow than today...to of course service their continued existence...As the US consumer reaches their maximum potential to sustain global inflation...It will become impossible to service the continued existence of all the contracts on Earth...slow at first but rapidly increasing speed...All the contracts will be busted...
The Global system will implode to oblivion...
They can use US Dollars to bid up the price of Euro's all they want...Once the US Consumer can no longer sustain it...the Euro will implode along with everything else...
The Euro derives all its current strength from the weakness of the US dollar...
To keep that game going...you need the supply of US dollars to continue increasing...
US consumers will reach maximum potential and stop...game over follows that.
Same thing happened in Germany...Once German consumers could no longer support the inflation of the world...they stopped...and the roaring 20's turned into the dirty 30's...
The roaring 6 decades is going to suffer the same fate...Just of a far greater magnitude...
Metals are bought and sold to turn a profit...A yield.
You need an inflating money supply to sustain yields.
You need consumers requesting the required amount of money to be manufactured to sustain the inflating money supply.
With real estate caving in the primary source of money supply inflation in the USA is caving in.
In 1791 the US Dollar did not exist...then in 1792 it was created out of thin air by decree.
Germany inflated to maximum potential quick then imploded...Rome inflated to maximum potential slow then imploded...
I'm sorry but positive thinking has a maximum potential...a mania is a mania.
The one prior to 1929 was 10 years in length...So far the current one is over 60 years...
Total credit market debt or the money supply in 1980 was 4.3 Trillion dollars.
Now it's 47 Trillion dollars...a 1100% increase of the money supply.
Gold and silver are not money...They are commodities like paper that can be used to construct money.
The Treasury of the USA is required, according to the rules, to supply the demand for numismatic coins. The Silver 1 Dollar coin and the $50 Gold Eagle coin along with all the other coins in the USA...the Federal Reserve is not involved with coins.
How much deflation could you handle before screaming for inflation?
Would you all be happy with Gold at 35 dollars an ounce and silver less than a dollar an ounce like 1971 for Gold or pre 1964 for silver?
According to the 1792 coinage act...A Dollar was 371 grains of pure silver...
There are 480 grains in a troy ounce so a dollar was 77% of an ounce of silver.
An Eagle was defined as "Eagles—each to be of the value of ten dollars or units, and to contain two hundred and forty-seven grains and four eighths of a grain of pure, or two hundred and seventy grains of standard gold."
Around half ounce of gold was equal to 10 dollars or 3710 grains of silver or 7.73 ounces of silver or 1 ounce of Gold was equal to 15.4583 ounces of silver...
The Constitution of the USA gives Congress the power to.
Secton 8
"To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures"
In whatever way Congress pleases...period end of story.
Currently the Congress authorized price of Gold is $42.2222 an ounce. Of course it costs to coin an Eagle so the face value is $50
And a Silver Dollar is 1 ounce of silver now.
1792...1 ounce of Gold = 15.4583 ounces of Silver
Now 1 ounce of Gold = 42.2222 ounces of Silver.
There is of course far more silver than gold.
PM's are not debt free...
Without bills to pay money would not circulate.
Bills = debt
My body is a store of value...
The top decrees what money is...period end of story.
Power is the medium of exchange...
Allow me to take more power than I give from another and I care not who makes the rules since I will eventually suck all the power from the hands of the many into the hands of the few or one and then they who have the power will make the rules of the game you are all playing...
Gold and silver coins no longer circulate because the required circulation to sustain the mass delusion you all are enjoying was unsustainable with gold and silver coins...
It's why all the silver in circulation stopped in 1964...The US Treasury has, according to the rules, an obligation to supply the demand for coins in the USA and when the raw material of the decreed money costs more than the the money...substitutes have to be found.
When the Roman silver mines could not supply the demand for money their money was debased since people are powered by food...Not silver or gold or copper...etc.
The US population's demand for money became greater than the supply of silver more than 100 years ago then add industrial consumption of silver and the jig is up.
Anyway you slice it and dice it...Taking more power than you give is inevitably doomed.
You are never going to find a way to have your cake and eat it too.
It's impossible.
You are all ignorant...Not because I say so...Because you all are...period end of story.
You are all ignorant whether I'm here telling you all or not.
Cutting down trees faster than they regrow is unsustainable.
It's an accounting irregularity...Money is not the problem.
Your ignorance of the accounting irregularity is the problem.
Absolute capitalists capitalize on weakness.
Ignorance is a weakness.
Trees don't have any power to stop the axmen.
Depending on lies and delusions for enjoyment is evil since they inevitably self destruct and shatter...
Ever hear...All good things come to an end?
Another lie you all believe is truth...
Or...You can't get too much of a good thing?
Another lie you all think is truth...
There are many lies that are 1000's of years old that you think are truth...
The current iteration of the Absolute capitalist hierarchial food powered make work enterprise...what you commonly call civilization is a lie that you all believe is truth that is easily 6000 years old...As old as recorded history...
Old self destructing lies have to be replaced with new lies...
Prior to 2000 the New Economy lie was believed to be truth and it was replaced with the War on Terror lie September 11, 2001...Along with the Ben Bernanke we have a weapon that can slay GOD lie in 2002...
The top controls the lies...They don't control Truth...
The first lie a liar wants another to believe is that truth is impossible to know...
Another ancient and popular lie that people fall in love with and it then becomes a cherished delusion...
Ignorance of truth is the root of all evil...
Evil gives you what you want to get what it wants...
The top knows truth...
All the lies and delusions that have ever been manufactured in all human history have been manufactured by the top and sold to the bottom to keep the bottom ignorant of truth...You all want hopes and dreams the top then sells you all hopes and dreams to give you what you want to get what they want...
Hopes and dreams are Lies and Delusions...rejection of the just think positive ignore the negative equation at the core of your reasoning algorithm is required to see truth...
I know truth and since lies and delusions are finite and fragile...I'm impervious to them...
None of you are aware of how powerful you are...
I am...
Since the Euro is being inflated at almost the same rate that the US dollar inflates then doesn't that mean if the US stops inflating the dollar then the Euro will start losing all its value? If the Euro inflates while the dollar doesn't , wont the Euro lose value to the dollar? The problem here is that while both currencies are being inflated at more than 10% per year, the dollar is being inflated just a tiny bit faster, which explains the slow degradation of the exchange rate.
ReplyDeleteYou get what you pay for. You don't get what you don't pay for. Which one is true? Which one is false?
ReplyDeleteAnd a Silver Dollar is 1 ounce of silver now.
ReplyDelete1792...1 ounce of Gold = 15.4583 ounces of Silver
Now 1 ounce of Gold = 42.2222 ounces of Silver.
There is of course far more silver than gold.
PM's are not debt free...
Without bills to pay money would not circulate.
Bills = debt"
Silver is consumed, gold is not. There may be more silver still in the ground, but it is getting harder and harder to get. Most of the gold ever mined is still around. Much of the silver is gone. When enough more is also gone, because it is being consumed by industry, the amount of gold and silver will reach parity. Then what?
Hi Hypertiger! Glad to see you're still writing. I think those guys at "the top" are a bit concerned anyway, as when things go south there's a concern that they may get a "French Revolution" style haircut. As per silver, I think it will continue to have value, but during any major crisis, being part of a tribal group with a supply of food and weapons will probably be of greater value. Even if you have several contracts worth of silver stashed somewhere, it may be difficult to convert it into something that you really need. Having some junk silver for inflationary events, and some cash to cover deflationary events isn't a bad idea.
ReplyDeleteAmerican government officials are saying that certain corporations are too big to fail. This is their justification for bailing them out when they get into trouble. In so doing, the American government has become a kind of Corporate Bankruptcy Insurance Company, yet without collecting any premiums.
ReplyDeleteIt is Fascism in reverse. Italian Fascism under Mussolini was when the government essentially took control over corporations. In modern America, the corporations have taken over the government, through the policy of giving corporate executives top positions in governmental regulatory bureaus. These men tend to work for their old corporation unofficially, while working for the government officially.
Chrysler was the first bailout back in 1979. The Savings and Loans came ten years later. Today it's Fannie Mae and Freddie Mac. In my view, no corporation should be allowed to get too big to fail. If they do, it is evidence of some sort of monopoly that is dangerous to America itself. No company should have so much power and money that its demise would threaten the nation's economy itself.
When America becomes an insurance company for all corporations that are "too big to fail," then the national government is the dog being wagged by the tail. Ultimately, this means that the big corporations can take more risks with greater immunity, because the government can be counted on to bail them out, while allowing the corporate executives to keep their huge salaries and even bigger bonuses.
Now we are coming to the place where people are applying this principle to America itself. If government looks at businesses as "too big to fail," so also do other nations look at America as "too big to fail." If America fails, those other nations will lose a huge market for their exports, and then their own economies will fail. But which nation wants to be the first to back off from its exports to help us out? None of them. Will Americans pass up a bargain from China (Walmart) and pay more for homemade products? Hardly. Therefore, it is inevitable that America, with its "free trade" policy, will eventually reach the point where Americans no longer have the jobs to earn enough money to buy any products at all--even the cheap imports.
That will be the point where the world economy collapses, like the cow that has been milked dry.
http://www.iht.com/articles/2008/07/20/business/20fail.php
"Gold and silver are not money... They are commodities like paper that can be used to construct money."
ReplyDeleteOne minor bicker. (And it's not that ol' "only gold and silver are money.") Ultimately, one possesses only one thing he can offer another--his abilities (e.g., labor, talents, knowledge). However, such are not always portable. Thus, media of exchange have developed over the centuries whereby one can "convert" his talents (etc.) into an item that can then be exchanged for another's talents. And, historically, this has been the relatively rare metals gold and silver. Such money stores our labors, etc., for such time that we need to exchange them for those of another. The metals acceptibly fulfil this role.
By the way, I just stumbled upon your blog, and can't help but notice that you use some of the same terms and style of a long ago friend with the initials T.D. That's not you, is it?