Sunday, November 11, 2012

It's Been That Way Forever- The Sunday Collage

What will the world look like when people suddenly realize that we are completely bankrupt, with no capacity to get out of debt, and that our dollar is completely worthless? What will happen and how will we conduct business? What currency will we use once the current one implodes? 

The problem has always been- controlling the quantity of your currency. Invent a way to control the quantity of a currency and you will win a Nobel Prize. For the past 5000 years or so, nobody has been able to do that because bankers always find a way to weasel around those rules. Thus the defacto currency quantity minimizer has always been gold. The banker's enemy. Tie the quantity of currency to a rare and finite substance, like gold, and VOILA!... a stable, un-inflating, method of payment is produced. 

I love history and not just the history that the winners write.

I have been very excited during the last week or so. The election of the socialist, Barack Obama, has cemented the path of our country for the next four years. For guys like me, this is going to be a wonderful time. President Obama is a lot of things, but the one attribute he most certainly does not possess- is personal courage. It will take great personal courage and sacrifice to save our Republic- yet Obama has no sense of that nor any sense of urgency. Therefore we can continue to plan on manipulated employment and inflation figures, a deteriorating economy, taxes up the wazoo including Obamacare, and most importantly- a Fed Chief absolutely committed to the destruction of all personal wealth to save his crony bankers.

In short, Obama is going to make me rich. I love Obama. He is the best precious metals and firearms salesman of all time. Fortunately, I understand who Obama is. So my accumulation of precious metals and guns is oddly coincidental- both in timing and scope- with 2009. I realized the scope of what was unfolding. I became a wealth preserving nutter. In fact, I am such a nutter that I even horde pre-1982 pennies (all copper) and pre 2006 nickels (mostly copper) I have at least 100 pounds of both. I also have a lot of guns.

All great Republics and democracies fail. That is the historical nature of things. People that forget history are doomed to repeat it. That's why 2008 happened. The people born in 1909, aged 20 in 1929, were gone in 2000. We have no collective memory of that time. And so, like the idiots that we are, we did the same thing all over again- this time with real estate. And our solution was exactly the same. Bail out the bankers, print money, and inflate away all of that accumulated debt. 

If you are a history buff then you will know that throughout history- courageous men and mostly our founding fathers- hated central banks with a passion. Why? Because they knew human nature. They knew that given the power, bankers would strip away the wealth of this country and steal everything in sight. A random walk down Wall St.- should be sufficient enough to prove that point.

The creature from Jekyll Island, the Fed, was born in 1913. Some 15 years later, banks were loaning money for stocks and greasing the wheels for the Great Depression of 1929. After the collapse of stock markets, we eliminated gold in 1933 so that the Fed could counterfeit some (now unrestrained by gold) currency and keep the insolvent banks open. We never left the Great Depression. Twelve years later, Japan gave us something to do. Something to rally around (unless of course you were a Japanese American) and eventually that whole Great Depression thing went away. By 2008, we had forgotten about it, mostly.

History we think, never applies to us and is largely irrelevant. We think that somehow we are smarter than those old dummies. This time- it will be different. But it never is. History is just one giant feedback loop. We make the same mistakes over and over again. That's why, with certainty, I believe our economy and the dollar will collapse. It is completely predictable. Like death. We forget.

When the dollar collapses, government will have seen it coming. We will default. Government may in fact, already be working on a contingent way of conducting commerce. There will be deflation, and then hyper inflation, as the government and bankers feverishly try to mask it from us. Then we will have a collapse. Many people will be caught off guard. The insiders, the bankers, and the government won't. In fact, those people are already positioning themselves back into precious metals. Sneaky bastards. But then again, if they told everyone- think how much more they'd have to pay for gold and silver. I just read a story about George Soros buying gold. And don't think that old gold hating bastard Warren Buffet doesn't have some gold. In pig latin, Warren Buffet's name means approximately, "Old ego inflated bastard who profited handsomely from bank bailouts and now wants to pay some tax on it."

I don't envision some Mad Max scenario. Any number of things could happen and they will happen relatively fast. Local currencies, continental currencies, worldwide currency, or re issuing a new national currency. The government and bankers would dearly love to put us all on tracking cards, that way no income could go unobserved. Or un-taxed. I don't really care about all of that mostly because I am nearly 52 and soon- I and my wrinkly skin- will be removed from this game. Oddly enough, I really would hate to be age 30 or so right now. I think Gen Y is going to feel some real pain.

So I don't think it really matters a whole helluva a lot what the great deciders decide to do. However, it is historically possible to predict with absolute certainty that when the new currency and wealth distribution occurs, the people with the gold and silver will get the most. You might as well get some too.

It is the golden rule. He who has the gold makes the rules. It's been that way forever. 


Marcus said...

Exactamundo. America is invariably and inevitably being bled dry, a process which started in 1913, by my reckoning, with the Federal Reserve's coup d'etat, and which accelerated greatly with Nixon's closing of the gold window in 1971 . The re-election of Obama will only hasten the downward spiral, in much the same way that water picks up speed as it circles, and eventually disappears down, the drain. Obama's weakness is gold's strength (silver's too). No, I don't expect a descent into the world of Mad Max, at least not any time soon, just a step-by-step process in which the country as a whole finds itself somewhere between third and first world status and with a greatly diminished middle class. As far as Buffett, the man is a disgrace. He reaped billions in bailouts following the 2008 financial crisis and now wants to "come clean" by paying a few extra millions in income taxes. What magnanimity, what noblesse oblige, what crap. Keep sucking back on your cherry cokes and cheetos, Warren; you certainly got me fooled into thinking you're just another regular guy.

He who has the gold, makes the rules. Wise words, Brian, wise words.

Anonymous said...

If you dig history and you have a few hours to kill, check this out.

Brian said...
This comment has been removed by the author.
Brian said...

This vid is relatively new...I watched part of it. I've seen a lot of older ones. Obviously, I am on the same page as Gatto. Brian

Anonymous said...

you know the government can cease/outlaw sale of/limit private ownership of/pretty much take your gold dreams and wash it all down the toilet don't you?

JimB said...

Frankly, I think the person with the food and important staples of life will end up with both, so maybe you better buy things of necessity NOW (guns, ammo, food, etc) instead of gold and silver.

Brian said...

I got that stuff covered too.

Brian said...

Think so? Me too. So I developed a plan.

Lynn Comp said...

if you haven't seen it yet, FerFAL (argentinian blogger) had interesting insights about the quality of gold that ended up being best, and in what format after Argentina got really ugly..
just search on "surviving Argentina economic collapse"