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Posted on 04/14/2011 8:56:35 AM PDT by SeekAndFind
Bond legend Jim Grant tells King World News there's only one way out of America's debt hole:
"Well, in my mind it will resolve them necessarily by undertaking the step of restoring the dollar to convertibility into gold.”
Grant has been calling for Bernanke's resignation for months. He says the debasement of fiat currency will continue and this will drive a gold rally.
“To me the gold price takes the form of a very uncomplicated formula, and all you have to do is divide one by ‘n.’ And ‘n’, I’m glad you ask, ‘n’ is the world’s trust in the institution of paper money and in the capacity of people like Ben Bernanke to manage it. So the smaller ‘n’, the bigger the price. One divided by a receding number is the definition of a bull market."
(Excerpt) Read more at businessinsider.com ...
Nope. That would limit inflation and they NEED inflation to decrease the cost of the debt. They have lived on inflation for 100 years and they are not about to stop now.
I think we’re beyond the point where the debt can even be repaid. Stepping up to the gold standard will require repudiation of the national debt. That’s probably a good thing since it will destroy the governments’s credit rating and effectively close the door behind us.
And devalue the dollar, price gold at a gazillion dollars per ounce, send china a couple of old gold necklaces in one of those jewelry exchange envelopes and say “here ya go, our debt is paid!”
Yup. And they will lie through their teeth to convince us that it's good for us. Never mind about the bit that each American pays for that inflation through lost buying power.
Last year, Kim Jong-Il revalued the North Korean currency to 1/10 it's previous worth and forced his citizens to redeem their old money for the new. He effectively confiscated 90% of their savings.
The Fed's policies are doing exactly the same to us -- just at a slower rate and without all the drama.
The Fed's policies are doing exactly the same to us -- just at a slower rate and without all the drama.
When the dollar is done and the new currency is introduced (The "Amero" or the "NearZero" or whatever they end up calling it), you can bet that the exchange rate will be unfavorable to us.
Returning to the gold standard does nothing except make it easier for the economy to implode.
Of course the economy is going to implode anyway. There is absolutely nothing we or anyone can do about it.
I hate it when I sound like a gloom and doomer : (
Sadly you speak the truth...too many people have their heads in the sand. Too busy Watching Oprah and Dr Oz and Regis and can’t be bothered by this silly economy fiasco. Oh, they aren’t watching on the 2nd and 3rd of the month because they are all out cashing their checks and turning in their food stamps.
So when does the government, make owning gold illegal, and start confiscation? I think that they already did with silver (Liberty Dollars)?
“Last year, Kim Jong-Il revalued the North Korean currency to 1/10 it’s previous worth and forced his citizens to redeem their old money for the new. He effectively confiscated 90% of their savings.
The Fed’s policies are doing exactly the same to us — just at a slower rate and without all the drama.
“
Excellent point! I didn’t know that about NK.
Only after trying all other possible options only to fail at every try.....then.......THEN and ONLY then will the government and the Fed finally give in and return us to the gold standard. They will collapse the dollar first trying everything else and in the process send us into hyperinflation and make paupers of the vast majority of middle class savers that take no preemtive action to shelter their wealth. Of course this is all JMO, but we seem to be travelling down the same old well beaten path to financial ruin trod by so many other nations before us.
um lemme see... there’s about 500M in fort knox. we owe 14T, or 28 times that amount.
ayup! that’ll do it!
500m = .5B = .0005 trillion
How about 28,000 times that amount? I know, I know lots of calculators don't have big enough screens for all those zero's.
Every man, woman and child in this country owes about $50k right now and at the current rate that debt load will double every 3 or 4 years. In 12 years everyone could owe almost a million dollars. Isn't compound interest (inflation) a wonderful thing?
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