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As an agnostic, I try not to indulge in things like "faith" too much. Should I put faith in the US Dollar? How about gold? Actually, the prudent investor refuses to put "faith" in anything, and attempts to make allocations based on the reality that we don't know the future.
I notice you didn't attempt an interpretation of recent IMF statements treating of gold. No, I don't know the future any better than you do, but I would suggest that those at the helm of the global banking empire probably do know a bit more about what they have planned than you or I.
"What if" TPTB have a plan already, and further, they have revealed a few hints about that plan? Would it be wise to ignore them, preferring faith that terrible things just aren't "likely"?
This is where "faith" (or the lack thereof) can finally play a reasonable role in assessing things "likely". TPTB are in far more control than we often like to give them credit for. Yes, that implies that I have "faith" that they are fairly powerful, but we each must form a basis, or foundation for interpreting the many signals coming at us.
I have chosen to keep TPTB firmly in the center of whatever possibilities that I may be considering. I always try and ask, "What are they really up to?" Here's a corollary, "It may look like chance, but it's probably been planned."
Back to "hyperinflation". I mentioned the possibility that this might NOT happen when I brought up the history of Sterling. One thing is for sure, "if" TPTB are planning on A, or B, one will happen. I may be grateful if they were gentle about it, but I would be foolish to assume they will be. Not to mention, our masters are not gods actually, and even if they had planned on "A", things could take place that result in "B". So, we should be prepared for BOTH. However, considering we really don't need much preparation for the "slow" scenario, then logically, all we can do is prepare for the worst.
Obviously, I don't believe in going to defcom 4 like many posting about the virtues of gold, but then again, I try never to forget who owns almost all the gold. And that impacts my decisions too.
Oh yes, as far as the wheelbarrows go, that is the traditional image of hyperinflation, and I wouldn't get hung up on it. As I said, when whatever we have in our bank accounts buys nothing, it won't really matter if you have a physical wad of paper.
As far as the mitigating effect of having the USD serving as the world's reserve currency at the moment, granted, that has been the saving grace for the addled USA for a long time now. Will that somehow prevent hyperinflation? Maybe, maybe not. Such a thing absolutely depends upon cooperation at the highest level. If that breaks down, or is "allowed" to break down, then the jig could be up sooner than you think. In 12 hours? Yes, possibly. Which means that a military mobilization to help stop it would be largely moot. Something to consider.
Another clue that should not be ignored is that many nations have been significantly increasing their gold reserves, as they use gold as one more attempt to diversify out of the USD, without killing themselves in the process. The writing may be on the wall, we just have to be able to see it.
I'd like to rephrase something you assert. You say that hyperinflation is "extremely unlikely". Unless you are friends with Bernanke or someone at that level, then you might as well say, "I trust! I trust that they won't let this happen." (Actually, that might be more logical than saying it "can't" happen...)
I would sugest that TPTB can indeed make it happen, if they want to, when they want to. They may also think that they have good reasons to do it, especially if we realize that they have desired a true world currency for a long time now. The decades-old dollar hegemony never was supposed to last forever. There will come a time, maybe sooner, maybe later, but it will have to go, in favor of something even more "global".
And as far as trust goes, it doesn't really go too far these days! As a result, don't be too sure that the sheeple are going to want to jump back into a "bargain" stock market. People have learned, many the hard way, that holding stock in a company is pretty much "trusting" the people running that company. And what we have seen many times since Enron is that we would be foolish to place too much trust in people who are virtually history's greatest thieves.
The very obvious statement you made is that this seems all very planned. That is correct. The Fed is not full of idiots. It has very intelligent people working there. Once they realized that they screwed up, they needed to do scenario analysis on what could happen. Right now we are witnessing the product of that: Funnel money to banks to eventually pay for put backs. I think the shareholders of the banks should be suffering, but that is not currently the Fed's apparent mandate. That is a different conversation, however.
For hyperinflation to take place, the money needs to actually be in people's bank accounts. While we are seeing this through government programs, which increase our debt, leading to the hyperinflation argument, one must take into consideration many other mitigating factors. Namely, the US tax code. Why bring up the tax code? Because it is extremely weak and can be improved dramatically. We have some of the lowest taxes in the world because of it. Unlike many bankrupt countries in Europe (see... well Europe) we do not have substantial tax rates (Over 60%) nor do we have Value Added Taxes. I do not see raising income taxes as a legitimate way of fixing our deficit, as no one will go for this. However, a VAT could be passed because it taxes consumption, not earnings...
Originally posted by babybunnies
Originally posted by Lil Drummerboy
Hmmm,.
I will place my bets on nothing happening
Particularly when it is one of the largest shopping seasons of the year.
Then you're a moron. If you're buying ANYTHING this holiday season without paying CASH you're an idiot.
Originally posted by Angry Danish
reply to post by Mythkiller
I wonder how they chose the dollar values for gold, silver, etc. $4000 / ounce for gold, kinda sensationalist.
Originally posted by Lazrmau5
reply to post by nepafogo
Hmm well to get enough money out of the gold market ......... you have to be rich to begin with. So really most of America will not be able to do this and when I say rich I mean making well over 750,000 a year. ......... So your little dream idea really wouldn't work. Unless you bought alot of gold before 2000 when it was barley 400 a ounce.........
The incredibly rich, global banks, governments, huge corporations that bought gold at a very, very low price could be behind the dramatic rise in gold prices. They could, for example, be producing video's predicting global chaos caused by say the decline of the US dollar which sucks the last bit of wealth from the masses who, wanting to get on the gold gravy train, buy gold pushing it's value higher and higher and higher.
Then through some form of financial manipulation / chicanery, the producers of doom and gloom videos, the incredibly rich, global banks, governments, huge corporations, etc., wanting to reign in the rising number of millionaires and wannabe wealth seekers, could cause the price of gold to drop back down to where it was years ago.
So now the poor or soon to be poor saps that bought gold at say $1,300 per ounce or higher, lose whatever wealth they had and the ultra rich, global banks, etc. are no worse off, and could actually be better off if they were the ones selling at $1,300 per ounce....
But hey, that's what some may call a conspiracy theory.......
Originally posted by eNaR
Originally posted by Angry Danish
reply to post by Mythkiller
I wonder how they chose the dollar values for gold, silver, etc. $4000 / ounce for gold, kinda sensationalist.
Whoever chose $4,000 / ounce for gold (producer of the video?) is probably sitting on a crap-load of gold and getting naive conspiracy theorists, the feeble minded, etc. convinced that gold's about to rise sky high would certainly increase their wealth......
HOWEVER, using a date close to the end of times (December 21, 2012) kind of defeats the reason for buying gold. If humanity is actually going to disappear, through polar shift, an invasion of this planet by human flesh loving aliens, whatever, buying liquor and loose women would be better for one's mental health during those trying times.....
...the zionist bankers who created the China of today stay on top the Chinese stay together as a group of middle management (confucianism) they will be the new homogenous controlled middle class owning the businesses and real estate. The peeps wind up disenfranchised in their own country...
The first 12 hours of a U.S. dollar collapse!
Originally posted by Surfrat
The only way I see the Dollar NOT crashing is the Euro crashing first. The Euro is in more trouble than the Dollar and I can see euro countries going back to their own currency.
It is a proven trend that when the dollar is up; all commodities are down and vs vs
so dollar crash; gold up, silver up etc