Its so simple really, that is why 99 percent of all the people around the world don't get it, because it is so obvious. So many big shots, experts all telling us what needs to be done to "save" the economy. None of their ideas will help.
Every single government that has ever abandoned the silver or old standard for a paper money standard falls.
Many of us remenber the silver coins that circulated in the U.S. up until 1965. Remember too the silver certificate dollars that we had in our wallets? They were backed by silver.
For over thirty years now we have abandoned any backing of hard money to keep the government in check. The result? Money creation for any boom or bubble the leaders could think of. A massive explosion of money supply.
So everyone was sold on this idea for a long time now, that "hard" money is a old relic. The truth is that hard money that backed our money kept the government in check. They could not inflate the money supply as long as we had the safeguard of our dollars being backed by gold or silver.
Now we have a government that has papered the world with useless pieces of paper that are actually created out of thin air and passed along as money. Just like what is happening in Zimbawee money has been diluted to the point that it has not much more value than butt wipe.
Along with this money creation comes inflation.
The reason the rest of the world is experiencing a downturn also is they have a fiat money system too. They have done the same thing and that is money creation to the point where it looses all value.
Anyone remember seeing the pictures of Weimer Germany where people took wheelbarrows full of German marks to the grocery store only to get one loaf of bread for all of that money? Or how about the wheelbarrows of money thrown into furnaces in that same country for fuel as wood or coal were more expensive to burn then the dollars created by those morons who printed it in excess.
We have just been fooled into thinking the dollar had some value and we have sold that thinking to all the countries of the world.
Its panic mode and guess what the bigshots have as ammo to save the markets? Paulson recently said, "we have many treasury tools to restore the markets" those tool's are the printing press.
MY summation.. they will print more money and that will be like adding gasoline to a fire. In the end when most have been burned and the dollar collapses we will again adopt a gold or silver backed money system and then we will see freedoms and less government intervention once more.
Thks Seabass