The US Is Like A Ship With No Lifeboats (Full Of Suicidal Bankers)

Tyler Durden's picture

Authored by Hugo Salinas Price via The Burning Platform blog,

“If the U.S. inflates and devalues the dollar, gold will go much higher in price”  Jim Rickards.

The last dollar devaluation took place under President Roosevelt in 1934, when from being worth 1/20.67th of an ounce of gold in 1933, the dollar was devalued to 1/35th of an ounce of gold.

The last opportunity for devaluing the dollar took place in August 1971, when the dollar was still pegged at 1/35th of an ounce of gold. Nixon took the advice of Milton Friedman and made the worst mistake in history; Nixon did not devalue the dollar as he should have done, but simply took the US off the gold standard, such as it was, and thence forth the US refused to redeem dollars held by Central Banks around the world at any price.

Since August 15, 1971, the dollar can no longer be devalued.

Since the dollar is the reserve currency of all Central Banks in the world, all other currencies – the euro included – are only derivatives of the dollar. The proof of this statement is that the value of each and every currency in the world is calculated in dollars,

The world’s currencies are devalued or revalued against the dollar in the world’s currency markets every day of the year.

There is a “Dollar Index” which shows a value of the dollar against a basket of other currencies. However, the currencies selected for the basket are arbitrarily selected and some relatively important currencies are not included in the basket. Besides this, the movement of the dollar in the “Dollar Index” cannot signify either devaluation or revaluation of the dollar, because the currencies in the Index are themselves undergoing either depreciation or appreciation in dollar terms, due to their own national circumstances.

The US cannot declare an official devaluation of the dollar because there is nothing against which it may devalue, or rather, it does not wish to recognize the existence of gold as money, against which it might devalue.

In order for the US to devalue the dollar effectively, it would first be absolutely necessary for the US government to establish gold as the referent for its value. The US government would have to declare that the value of the dollar is equivalent to a given amount of gold, and solemnly promise that that value will be upheld and made good by offering to buy any amount of gold tendered to it, and pay for it in dollars at a price slightly below the officially established price of gold in dollars, as well as offering to sell any amount of gold paid for in dollars, at a price slightly above the officially established price of gold in dollars.

Once an official value of the dollar in gold were established, it would then once again be possible for the US government to renege on its promise and devalue the dollar by establishing a new and lower value of the dollar in gold. In other words, the dollar must first of all be freely convertible into gold at an official rate, before any devaluation can take place.

As things now stand, it is impossible to devalue the dollar.

A rising price of gold does not devalue the dollar, because there is no official link between gold and the dollar. The world’s monetary and financial systems have no link to gold. Gold can be any price without causing any effect upon those systems. We have seen gold at $1900 dollars per ounce, and things were running just as they were when gold was $300 dollars per ounce.

However, the rising price of gold is a huge embarrassment to the US government not because it devalues the dollar (it does not do this) but because it provokes a loss of confidence in the dollar. When the dollar is seen as falling in value against gold, its fall causes investors to exchange dollars and other currencies for gold as a means of protecting wealth. The rising price of gold is a blot on the prestige of the US dollar and the prestige of the US itself.

The price of gold in dollars is therefore under strict government control. This fact, once derided as ridiculous, is increasingly accepted as truth by those interested in monetary matters around the world. The means for controlling the price of gold lies in the massive sales of “paper gold” which take place to suppress its price, as so many investigators have amply documented.

US monetary policy considers that the dollar is here to stay forever, and that gold is no longer – and never again will be – the world’s ultimate money.

The governments of several nations around the world do not share the same conviction with regard to the permanence of the dollar. China invented irredeemable paper money – which is what the whole world uses today – some one thousand years ago, and several dynasties of Chinese emperors learned to their cost that paper money always degenerates into simple trash.

The Chinese government knows that the dollar will not be around forever. China is purchasing enormous amounts of gold to add to their huge pile of US Bonds in the reserves of the Bank of China; the government of China is more enlightened than the government of the US, because it is encouraging the Chinese to purchase gold and silver.

The US government tells the world that it possesses some 8,000 tonnes of gold; the fact that it cannot deliver physical gold held for Germany’s account belies the assurances regarding the physical gold stock of the US.

The situation for the US – and for the world – is dangerous: the US is like a ship with no lifeboats, because it is presumed to be unsinkable.

The US and its allies are allowing the Chinese and Asia in general, to take possession of huge amounts of gold every year, while the US, the UK and Europe are drained of gold by shipments to the East.

The US evidently believes that the dollar is here to stay and that gold is just a passing fancy. This is classic hubris or arrogance.

When serious problems for the dollar surface – as they surely will – and the US has little or no gold to fall back on, the US with its back to the wall may become a very dangerous entity in the world. Would it be possible for those running the US to loose their heads and decide for a suicidal nuclear war in response to a desperate economic situation? Does the destruction of the whole world matter to men about to take their own lives? Do suicidal bankers worry about the fate of the world?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Seasmoke's picture

Full of homicidal bankers. 


Fixed it. 

whatthecurtains's picture

More like "Full of sociopathic bankers"

rubiconsolutions's picture

"More like "Full of sociopathic bankers""

Isn't that redundant?

0b1knob's picture

rising price of gold...provokes a loss of confidence in the dollar

<loss of confidence in the dollar...provokes a rise in the price of gold

You say tomato, I say DIE HERETIC SWINE.

ZerOhead's picture

No lifeboats?

There are actually more than enough lifeboats if you happen to be a well connected economic terrorist...

0b1knob's picture

While we are waiting for the ship to sail, please watch this short instructional video from your cabin crew....


boogerbently's picture

"When the dollar is seen as falling in value against gold, its fall causes investors to exchange dollars and other currencies for gold as a means of protecting wealth."


Seems kinda like buy high/sell low.

Squid-puppets a-go-go's picture

Sting could re-release his hit song

"what might save us, me and you... is if the bankers loooooove their children, too"

MontgomeryScott's picture


I don't mean to interject about some song by 'The Police'. Personally, I liked 'Spirits In The Material World'... so this isn't about some attack or opinion on a non-sequitorial quote from some unknown song, whose title won't be known by most.


I couldn't help but notice the picture in this story, and the similarity to "My Avatar Picture".

I'm SHOCKED, I tell you, SHOCKED and SHAKEN! The Olympic (oops' 'Titanic', I mean) died on April 15, 2012, in the early hours of the morning, most likely sucked down by a giant Atlantic Squid-puppet straw-man of the Federal Reserve scheme.

Maybe today IS a good day to die! Prepare for RAMMING SPEED!

The bankers DO love their children. They just had a few of them for lunch.

NO, not 'over' for lunch.

They like to eat them. NO, not eat 'with' them. THEIR children, YOUR children, ANYONE's children; all are welcomed on the menu.

They LOVE the taste of CHILDREN in the morning. It tastes like... It tastes like... victory... Trafalgar...

And, I'M a sick mother fucker for pointing this shit out, I suppose.

svayambhu108's picture

Sociopats don't kill themselves, those people that did where among the wrong crowd.

zeroheckler's picture

yeah, redundant as Peter O'Toole

flacon's picture

Could you elaborate on the Peter O'Toole example? Thanks.

weburke's picture

oh? the enslaved are going to throw off new rome and the currency it uses to fund its global military? poland missing government comes to mind ! plane crash? there is film of the crash sight, and all those missing people are not on board. film proof? yup. dead film guy? yup. any uprising in poland? no. any western media reports on that? no.

MontgomeryScott's picture

'Lawrence of Arabia'.

Try watching the movie that Peter O'Toole made in his honor.

Does this help, plebe 'falcon'?

maskone909's picture

If a tree falls in the forest and nobody is there, does it make a sound?

If most people dont undertand the function of gold and the price rises, does it impact the dollar?

Sorry but this ponzi lifestyle has made me jaded.

boogerbently's picture

If a man makes a statement in the forest, and his wifes not there to hear him, is he still wrong ?

MontgomeryScott's picture

A man dies one day, and approaches the gates of heaven.

There are two lines; one with a sign that says' Men who were the rulers of their house', and another, which states 'Men whose wives ruled the house'.

Seeing the line with the second sign being quite long; and no one at all at the first, the man decides to shortcut the second line, and steps up to the first.

St. Peter, upon seeing this man standing in the first, became quite animated, and stopped the second line momentarily. Bowing down, he questioned this man as to his tenacity. "Were you REALLY the ruler of your house, man?" St. Peter smiled, awaiting the response.

The man shuffled his feet and looked down. "Well, honestly, no. My wife told me I could stand here, and I always do what she says."

The Gates opened...

Deathrips's picture

Hmmmm...why such a big ship?


Id argue that the bankers and crony corps/politicians are like a 2000 ton anchor, on a 10 ft dingy (the USE). The anchor is in the water..with about 500 yards of rope over the Marianas Trench. The USE is standing there watching the rope fly out the coils...wondering whats going to happen. The USE is going down like a 2 dollar hooker in a truck stop bathroom. The bankers/cronies/collectivists are just the pimp that slaps her when she stops sucking.


What happens when quadrillion dollar margins are called?


Nothing good. Hold on to you seats ...its about to get wild.



Eeyores Enigma's picture

Gold will not replace dollars, it is just another way to hold/store dollars.

When you need to turn that gold into something useful it will be turned back into dollars or something else tangible PRICED in dollars.

The dollar is here for ever or until they pry it from our cold dead hands which is how world reserve currencies are really born and that may yet happen but there ain't nothing you can do to hedge for that one.

Mr Pink's picture

I'm sort of in the same boat...the FALLING price of silver is MY embarrassment

ZerOhead's picture

You should really sell your silver... the sooner the better.

It deserves a less embarrassed owner.

Mr Pink's picture

Nah...I've already come this far. My only option is to keep buying more

MontgomeryScott's picture

Are you paper silver, or physical?

The paper is worth less than the paper it's printed on, you know.

You could trade paper silver derivatives for USD derivatives or GLD derivatives or Real Estate derivatives or camel shit derivatives or Comic Book derivatives or Bitcoin derivatives or MyPetRock derivatives or... whatever crap you think is worth something as you wish you had a warm place, some clothing, and a place to sleep in peace; and the promise of food in the morning.

When all that shit you think is going to save you falls; and you are holding a bunch of paper that you can't transfer in to physical wealth; and you' re put in a position of punery and subservience: when your only option was to 'BUY MOAR SHIT', and you complied obediently to those who are your Overlords in the Monetary Scheme; when these options are called, and YOU are left with less than 30 days survival: Will you then ask this question of the value of physical versus paper?

Careful, my pink friend.

TheReplacement's picture

A good sailor would take an axe and chop the rope in half.

We need to rise up, take power, hold trials and potentially public exectutions for the traitorous bankers, politicians, and spies, then the main event - debt repudiation and the confiscation of ill gotten gains from said actors.  Let the anchor sink to the bottom and save the ship and passengers.

If we want to survive this we need to take action.  We need to be the victors and real history has to be written and taught to future generations.  They will still screw it up at some point but all we can do is give them the chance.  First, we have to take our chance.

Deathrips's picture

Excellent point Replacement.

Without a solution, its crying.

For Me:

The ax that cuts this rope is working on independence from the system, so at least I have a choice of saying no. It does not need to be done overnight. With some time you can start simple banking, investments (physical), barter- then move to food, water and energy basis. Making healthy choices. Working with my community. And then sometimes i dont....but i make a conscious effort. I like it.

Nobody needs to rise up. With out a host ...parasites die. With the over leverage of this rehypothication nightmare, 10 % withdrawing consent..should do the trick. Remember, Its exponential in both ways.


They may writhe around as a injured beast does before it goes down..and that part is dangerous... keep your distance (independence) and the impact will be less severe.


The beast is wounded, make sure you are not dependent on it..and you should be better off.


One thing is for sure ..history will be told by the winner.


We will see. I think its exciting and a privilege to see it all go down. Its only "the end of the world" for their pets.


The change is internal, not externaly caused






Ifigenia's picture

Proscription on the 1% would help.

MontgomeryScott's picture

Take a ride on the Interplanetary Motorcycle of AGW/Climate Change!

The 1%, of course, are excused.

Your proscription, Dr. Ifigenia?

PLEASE. my children are DYE-ING...


Buck Johnson's picture

"The US evidently believes that the dollar is here to stay and that gold is just a passing fancy. This is classic hubris or arrogance.

When serious problems for the dollar surface – as they surely will – and the US has little or no gold to fall back on, the US with its back to the wall may become a very dangerous entity in the world. Would it be possible for those running the US to loose their heads and decide for a suicidal nuclear war in response to a desperate economic situation? Does the destruction of the whole world matter to men about to take their own lives? Do suicidal bankers worry about the fate of the world?"


I think it's a combination of both Hubris and Arrogance.  Because we in the US have over estimated our competence, accomplishments and capabilities, especially when we think that others can't come to our level.  They are delusional in their thinking.  Arrogance because of our pride in being overbearing and outright rude to people that we believe aren't us including people who aree in the US.  If this was a movie you would be screaming that the US is going to get their comeuppance, but since it's real life it's truly scary.

Your right, when our financial problems hit we will be extremely dangerous as a country and we will be looking for a fight.  What I think will happen is we won't attack Russia or China, but all of our friends in the West.  Remember Bullies go after individuals and countries that they deem weak.  The US will bribe, conjole, steal, threaten and blackmail politicians in those countries to allow things that they wouldn't have done otherwise. 

Caveman93's picture

I never compare $$ to gold. One day really soon, when we hit that inevitable "40% of income goes to just buy food to eat mark" that Max Keiser has deliniated many times as the ultimate trigger for revolt (see Arab Spring, etc.), you will know the dollar has died. I believe I just read something on ZH about food price index up 19% for quarter? Prepare accordingly folks.

El Vaquero's picture

I suspect that magic 40% number will not hold in the US.  I think it will take a smaller percentage, simply because our society is set up to force people to do a bunch of unnecessary shit.  It is when people have to choose paying the necessary fees to do business, or paying their mortgage or paying their property taxes or eating, or etc... that I see things coming to a head.  It is when none of the choices allow people to participate in our modern society without being non-compliant with all of the rules that either the rules will change, or there will be violence.  We have made life overly complex, and there are costs to that. We're pretty much there, or at least on the cusp.  Now it is just a matter of waiting until people realize this, if not explicitly, implicitly through seeing the tyrannical result of all the BS that we have been a part of.


We have managed to overshoot in this and we have yet to pay the real price.  Lag times are a bitch.



PeeramidIdeologies's picture

That a great point. If you sit down and crunch the numbers most people making under a 100g are using almost 70% of their annual income on compulsory costs. Add a few unexpected expenses and you have to be pretty prudent to save anything. This is the point at which the truth rears it's ugly mug. The system is a farm, very similar to the movie the matrix, that uses the energetic potential of the masses to sustain it's massive consumption habits. Those doing the harvesting reap the rewards while those at the providing the sustenance are either unaware or worse unable to disconnect.
Now what's curious about the situation is; Has this system been designed bottom up to function in this manner? Or is this simply human nature that, if left unchecked allows these hierarchies to develop?

El Vaquero's picture

IMO, it is human nature.  Sociopaths and control freaks are a reality in the human population.  Given a chance, they'll take the reins and distort or manipulate whatever system we have in place.  I have no grand solution to this, except to say that a prerequisite to being free is having the physical ability to kill those who would rule your life. 

Beam Me Up Scotty's picture

Don't forget about the sheep.  They let the sociopaths and control freaks run wild.  The sheep are in a constant state of begging to be lead by someone other than themselves.  If people would wake the fuck up, and take control of their own lives, and embrace freedom, instead of slavery, the sociopaths and control freaks would be in big trouble.

PeeramidIdeologies's picture

The Great Awakening, yes sir, this an idea of immeasurable potential and something that I find extremely interesting. You hear of unintended consequences and in my opinion this is one that isn't getting enough press. If ever there were to be any meaningful change in the sentiment of general population this is the type of event that must occur. This might sound a little far fetched, but if you consider that all that really needs to happen is for people to understand, or for it to become common knowledge, that they would be better off in virtually all aspects of life were they to withdraw from the system. It would be difficult at first, but let's be honest, things are not easy now and aren't going to be getting any easier for the majority. Most people, I believe, are much closer to that realization then they get credit for.

Beam Me Up Scotty's picture

I am not so sure.  At least 50% of the population are permasheep.  There will be no awakening.  They are either stupid, or dumbfucks, or both.  On my way to work today I saw 2 idiots in a broken down car on the side of the road.  One guy is pouring gas into the tank.  How do you run out of gas in todays day and age?  They make it so when your car says its empty there is still 2 or 3 gallons of gas in the tank.  And they both looked like losers.  Just because your financial situation is poor doesn't mean you have to act like an idiot.  Problem is, these people's financial situation IS poor BECAUSE they are idiots.  These are the people who are born with a bad case of "dumbfuckitis".

Yes, there are lots of people in the other 50% that are intelligent people that are still jacked into the system.  These are the people that do need to wake up and probably will in time.  Might not be enough to overcome the masses of idiots out there however.

PeeramidIdeologies's picture

lol I'm sure you could imagine the circumstances that would cause any individual to be driving around on empty. I don't know anyone that does that by choice. More likely then not, they are well aware of the "situation" but without land of your own and some financial stability, withdrawing from the system can appear to be an insurmountable task.
IMO this is the real problem, not people's intelligence, but lack of available information. If you look at the informational inputs the average person receives throughout the day it's no surprise they are operating in a disorienting fog of misplaced priorities.
But, and this is a big hypothetical arse, you were to see an increase/change in the inputs, say the availability of community gardening, or accessibly to self sustainable infrastructure then, I would think, people's priorities would begin to shift naturally. Of course that would require the cooperation of you-know-who.
That said, I do think this shift is already underway and that deep down most individuals would choose to be self sufficient. It's just a matter of increasing exposure to the benefits and possibly creating an easier path and BAM you've induced a cultural shift. Nothing to it.

The wheels on the bus are going to fall off's picture

Unfortunately the masses are still asleep, un-beknown to the daily raping of their future prosperity and life. Not many people understand how this system works and most people would rather complain than do anything about it.

I agree, that the only thing that will bring affirmative action will be at the point that the sheeple cannot afford to put food on there table, it needs to be a survival moment before a revolution starts.....

Hyperinflation could be a catalyst.....

Rafferty's picture

Not sure about that.  If I may say so I'm well educated (post-doctoral) and well travelled yet I never connected the dots until I'd nearly finished my working life ..... even though the racket should have been blatantly obvious. What chance will a guy working every minute just trying to get by have?

john39's picture

"C. G. Jung, the great doctor of the soul and one of the most inspired psychologists of the twentieth century, had incredible insight into what is currently playing out, both individually and collectively, in our modern-day world. He writes, “If, for a moment, we look at mankind as one individual, we see that it is like a man carried away by unconscious powers.” We are a species carried away — “possessed” by — and acting out, the unconscious. Jung elaborates, “Possession, though old-fashioned, has by no means become obsolete; only the name has changed. Formerly they spoke of ‘evil spirits,’ now we call them ‘neurosis’ or ‘unconscious complexes.’”

PeeramidIdeologies's picture

Thanks for the link, sounds like good brain food.

GeorgeHayduke's picture

That's been my concern about this economy for some time now. It is set up to kill us all (except the 0.01%) in a death by a thousand cuts manner. In nearly anything you do, there's someone somewhere that's figured out a way to get a nickel or a dime out of you in the process without adding much of anything. All of that friction adds up to just kill everything in a slow, agonizing death.

Drachma's picture

"40% of income goes to just buy food to eat mark"


Here is the sad (and criminal) truth for communist Kanada:



Canadian families are now spending more on taxes than on food, clothing, and housing combined, new research has claimed.

The Fraser Institute's Canadian Consumer Tax Index tracks the total tax bill of the average Canadian family from 1961-2012. It adds up the various taxes paid to federal, provincial, and local governments; including income, sales and property taxes, Employment Insurance and Canadian Pension Plan contributions, and "hidden" taxes such as import duties, profit taxes, and gas taxes.

The Institute calculates that last year, 42.7% of the average family income of CAD74,113 (USD72,200) was spent on taxes, while just 36.9% went towards other expenses. In 1961 the average family earned income of CAD5,000, but used just 33.5% of this on taxes and 56.5% on shelter, food, and clothing.

The 1,787% growth in the average tax bill has outpaced the 1,290% rise in the cost of housing, and the 607% and 578% increases in clothing and food respectively.

"Taxes are far and away the largest and fastest-increasing expense in the average household budget," report co-author Charles Lammam said.

With the federal and most provincial governments now running budget deficits, today's taxes do not cover spending levels, Lammam added. The resultant outlook for taxpayers "is bleak, since deficits must one day be paid for by working Canadians unless governments take serious steps to reduce spending."


And yet the sheeple here continue to believe that this type of (theft) taxation is necessary for a 'civilized' nation.

Tegrat's picture

Tax is the one category you and everyone spends most of their money on in the US and other countries with any tax system. When idiot liberals think they are "hurting" "evil" corporations by taxing them, the corporations count that as an expense in their pricing. If you count gas , (cigarettes, booze) sales (consumer), income taxes and the higher cost of everthing created by corporations at a 39% tax that they pass to their customers - almost every person is paying more over a lifetime than they spent on their cars, houses and other assets combined.

  This has been common knowledge (or I thought) for decades.

Robot Traders Mom's picture

The smart Americans have already left and established a new community elsewhere. There will be a lot of blowback against expats in the coming years. The US will be the last place in the world you'll want to be when Americans go feral. As Ron Paul said, a border fence would be used to keep Americans in...