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Old 01-08-2013, 04:04 PM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
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This is an article about the period of time that America was on the gold standard. The dollar was 42% gold backed but, this proved to be adequate.
This ended in 1914 because the PTB needed a flexible currency to get WW I rolling.

This article shows that all the distorted statistics from GOV have distorted the true state of the economy. Investors are starting to catch on and have refused to invest.
Gordon T Long : Global Macro Economic Research

This is a good article talking about all the various leeches who attach themselves to GOV in order to collect a paycheck that they don't deserve.
All the various functionaries, bureaucrats and court-jesters.
Zombie Nation

Automation and low-wage competition have wiped out the job market.
GOV is printing like crazy to keep the economy going. War and war industries are the only thing that is "selling" right now. So, WAR it will be.

There is lots of talk about inflation and hyperinflation. The economy is actually in deflation. The amount printed by the FED is far less that the notional amount that people lost in the previous crash.
The problem at the moment is that the world is shunning the dollar.
After 1944, the dollar was the reserve currency.
After the Korean war, the war-profiteers and the empire builders fired up a war in Viet-Nam. The over-printing that was required to make war destroyed the value of the dollar.

Various countries shunned the dollar.
Since the dollar was no longer a gold currency, Kissinger managed to make it the next best thing. He tied it to oil. All oil had to be purchased with U.S. dollars. This extended the life of the dollar onward from 1971.
Once again, various countries are shunning the dollar. China has set itself up as the oil broker for the world. Most other countries have joined some kind of trade union to get away from dollar trade.

The dollar is being shunned in world trade. This rejection contributes to inflation in America as all those dollars come back.

At some point the R.O.W. will reject U.S. dollars and America will be forced to use a gold backed currency. The probable outcome is that America will use a gold-backed dollar for foreign trade and a domestic fiat dollar at home. Adrian Salbuchi already wrote about the likelihood of this.
There is much talk about gold confiscation. If GOV can print endless quantities of the domestic currency to buy gold, it doesn't make sense to confiscate gold.
You can bet that there will be laws against exporting gold.
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