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Old 01-16-2013, 07:14 PM  
wehateporn
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Germany Want Their Gold Back

The US want to grab the guns before the collapse and the Germans want their Gold back.

http://libertarianglobal.com/archives/991

"The dollar crisis, and America’s monetary collapse, has already begun.

Yesterday, Germany, Europe’s financial leader and owner of the world’s second-largest gold stockpile, demanded the United States’ Federal Reserve return over $200billion dollars’ worth of gold reserves to the German central bank. This rush for commodities, gold and precious metals in particular, are an indicator of a global loss of confidence in American fiat money, even despite its status as the world reserve currency. Public figures such as Ron Paul have correctly stated that people naturally move towards commodities such as gold and silver when confidence in a currency is lost; and Germany is no exception. But why is this happening?

The failure of the dollar can be linked to two major factors: debt, and inflation.

First and most importantly, government spending has skyrocketed since the 1960’s. Lyndon Johnson’s “Great Society” began a massive upswing in spending which continued throughout the decades, culminating in the pervasive welfare state we have currently. Entitlements such as Social Security, Medicare, and Medicaid are the largest items on the government’s budget, dwarfing even America’s unparalleled military spending. These insolvent programs are simply too massive to be feasibly paid for, even with the most regressive and confiscatory tax plan. But instead of reducing spending, the government decided to simply take on more debt.

US debt has reached unimaginable levels, eclipsing the nation’s entire GDP; and neither party seeks to reduce it. Democrats are particularly fond of merely raising the debt ceiling, in the name of “fiscal responsibility” – like trying to pay off credit card debt with another credit card. But there is another trick up their sleeve: monetization of debt.

Government will issue bonds, which are then bought by the Federal Reserve using newly printed money, and thus increasing the money supply. This increase in the money supply is inflation, and it waters down the value of a consumer’s dollar. Currently, inflation stands at 11% – a rate which reflects the dollar’s 98% loss in value since 1913. Besides rising prices for consumers, other signs of inflation are present, such as Congress’s scheme to model American currency on Zimbabwe’s by printing a so-called “trillion dollar coin.”

In response to this loss of value in American currency, individuals and governments have begun the scramble for commodities like gold, which are worth a great deal on the open market. Germany is the second nation to pull its reserves from American holding. It marks a lack of faith in America’s rapidly inflating currency, and the ability of the American government to pay its debts. The dollar is destined to be worth less than its paper, and only those with hard commodities will have real purchasing power.

Start saving your coins and jewelry, because the dollar, and the government which prints it, are destined for catastrophe."
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