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Posted November 17, 2008
Will be for sure a
strategy designed to ease the burden of ALL debts — by simultaneously
devaluing ALL currencies ... and re-inflating ALL asset prices.
Economists call
such a strategy inflation and hyperinflation. This is done by printing
Fiat Paper money.
Will be a new
financial order including new monetary units that helps to wipe clean the
world's debt ledgers.
This has already
been introduced in the EU. They called it the EURO. Since, prices have at
least doubled and in some countries (Spain), some prices have quadrupled.
Local propaganda has window dressed the operation.
To end the Great
Depression in 1933 Franklin Roosevelt devalued the dollar by 40% via
Executive Order #6102, confiscating gold and raising its price 69.3%,
effectively kick starting asset reflation.
Yes, he did.
However not a history book says this policy just failed. As a matter of
fact, it made the situation even worse. Later on, taxes had to be raised
to 92% and food stamps were introduced.
Only this time, it
won't be just the U.S. that devalues its currency. The world is too
interconnected. In other words, too many countries are sitting with
Dollars. Instead, the world's leading countries could propose a
simultaneous and universal currency devaluation.
Such a thing
doesn’t need to be proposed. It will happen automatically as all Fiat
Paper Currencies start to fail in sequence. It already happened in
Zimbabwe and is happening in Iceland.
They cease all gold
sales and instead, raise the current official central bank price of gold
from its booked value of $42.22 an ounce — to a price that monetizes a
large enough portion of the world's outstanding debts.
Such an action
is as impossible as a simultaneous and universal currency devaluation. The
forces of the markets will bring the price of Gold to whichever level it
judges fair. We and other analysts see a price objective which equals the
Dow Jones level: a Dow of 9,000 would result in a Gold price of $ 9,000.
Following
figures based on the American debt alone:
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To
monetize 100% of the outstanding public and private sector debt in
the U.S., the official government price of gold would have to be
raised to about $53,000 per ounce.
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To
monetize 50%, the price of gold would have to be raised to around
$26,500 an ounce.
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To
monetize 20% would require a gold price a hair over $10,600 an
ounce.
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To
monetize just 10%, gold would have to be priced just over $5,300 an
ounce.
Important is to understand that it is not so much the price of Gold
that is so important but rather that there is a link between a currency
and Gold so authorities cannot issue unlimited quantities of money. In
fact, one should not even have it about the price of Gold but rather
about the value of Fiat paper money! A return to a Gold standard is a
MUST for a stable currency and booming economy.
Goldonomic, Florida, USA -
+1
(772)-905-2491 |
