[Posted
October 5, 2009]Psst... Dollar is in Distress
In case you didn't already know it
You Tube Sep 25, 2009 - CNBC - Interview with Jim Rickards
Future of the Dollar
JIM RICKARDS: My view is that it has to do with gold. What he [referring to Kevin M. Warsh, Governor of the Federal Reserve Bank, who ran an Op-Ed in the Wall Street Journal on the day the G20 opened] is doing is sort of preempting the collapse of the dollar. Gold goes to $1500, that's not because dentists are suddenly busy, filling people's teeth; it has to do with the fact that the dollar is imploding, and so Warsh is saying to the G20, "We're not going to let that happen." He can't come out and say that, because the minute the Fed Governor talks about the collapse of the dollar, the dollar will start to collapse, so he's doing that by indirection.
The Fed needs the dollar to go down by about half over the next 14 years. We have 60 trillion dollars of liabilities.... There's no combination of growth... no feasible combination of growth in taxes that can fund that liability. ... We can pay 30 trillion, but not 60. So 4 percent inflation over a period of 7 years cuts the value of the dollar in half. That's what the Fed does best. If you had a nickel and three pennies in your hand - eight cents — that's the value of the dollar relative to 1913, when the Fed was created. So the idea of price stability is nonsense. What they do is inflate the dollar to sort of prop up the banks. So they need to do that, but it's a dynamically unstable process, so if you try... they would love to do it gradually, and that's the plan, but if the market gets ahead of it, if the market sees this playing out — which they probably will — we could have a very rapid collapse of the dollar. We would see that in gold.
When you own gold, you are fighting every central bank in the world. go to CNBC video
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Actually it is not money. You are befooled. You are such a fool that you accept a piece of paper as money. Therefore I say you are rascal. That is my business. If I say "Government, give me gold," and government has passed law, "No, you cannot possess gold," that means cheating. How I shall keep gold, that is my business. First of all you give me gold. It is due to me. But you are giving me paper. That means cheating is begun from you. more
Government treasury should be protected... wait, what government treasury?
excerpt from Srimad-Bhagavatam 4.16.10, purport
The word upagupta-vittah is very significant in this verse. It indicates that no one would know the extent of the riches King Prithu would confidentially keep. The idea is that not only the king but everyone should keep his hard-earned money confidentially and secretly so that in due course of time the money can be spent for good, practical purposes. In Kali-yuga, however, the king or government has no well-protected treasury, and the only means of circulation is currency notes made of paper. Thus in times of distress the government artificially inflates the currency by simply printing papers, and this artificially raises the price of commodities, and the general condition of the citizens becomes very precarious. Thus keeping one's money very secretly is an old practice, for we find this practice present even during the reign of Maharaja Prithu. Just as the king has the right to keep his treasury confidential and secret, the people should also keep their individual earnings a secret. There is no fault in such dealings. The main point is that everyone should be trained in the system of varnashrama-dharma so that the money is spent only for good causes and nothing else.
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