DOLLAR COLLAPSE

RE: Hyperinflation History: La Terreur by John Rubino -www.Dollar Collapse.com

With the enormous debt of the U.S.A. and the ever increasing deficits, is a collapse of the currency inevitable? Collapse, what does that mean, against what?

If the dollar is inflated, what of it, aren't all the world's currencies being inflated; so in comparison what has changed?

The deal is that the dollar is useful to buy things with--people see it as a measure of value. So if it takes more and more dollars to buy things, eventually it will take a wheelbarrow full to buy a loaf of bread. What does that do to peoples savings, --they become worthless if they are in the form of dollars.

Money of all the commodities is the most useful and relied upon to make things work. It is what we all work for, guard, value and prize. Without money there can only be barter and we lose the efficiencies brought by the division of labor--each man would have to grow his own food, provide his own water, power etc.

When a currency like the dollar becomes weakened by ceaseless 'printing' more of it, it becomes weaker and weaker to the point that no one values it any more, and does not want to hold it as a store of wealth or accept it in trade.

Inflation of currency is a counterfeiting trick resorted to by governments throughout history. For awhile it seems like instant riches, then the chickens come home to roost and all the paper money proves to be next to worthless.

Rubino is quoted here: "Historically — and there’s a lot of history on which to draw — when a country’s currency is trashed, so is its national character. The relationships between work, savings, debt and more generally honesty and fair play, are all perverted when money ceases to function as a store of value."

"Governments, meanwhile, can only do their thing if they can pay for it, and as the value of their monetary reserves and tax revenue falls, they go absolutely crazy. Frequently, hyperinflation equals dictatorship."

There has never been a time before now, less you consider- post WWI Europe, or maybe the Roman empire, when the whole world was awash with paper [fiat] currency(I owe You nothings). Before there was a least one nation who had remained solvent, and therefore it's currency was used as a 'reserve' currency, and easily exchanged for gold and silver.

Our constitution specifies the coining of gold and silver to be used as money, thus safeguarding us from deliberate currency debauchery. Our founding fathers wanted to spare us the agonies of currency boom and bust, yet since 1913, when the Federal Reserve Act was passed, we have gradually gotten away from any pretense of gold backing and have steadily inflated our money.

There is a price to pay. We have already seen the whipsaw effect of changes in the money supply- inflation/deflation cycles. Now, however we are beyond that and on a roller coaster ride of hyperinflation, from which there is no return except destruction of our economy.

With Love and Kindness,

THE HATMAN