• GoldCore
    07/30/2014 - 18:58
    “But long term...and economic law says, if you keep printing a lot of paper money, the value of the dollar and currency will go down, and things and most prices will go up and indeed gold always goes...

Mike Maloney: The Dollar As We Know It Will Be Gone Within 6 Years

Tyler Durden's picture




 

Submitted by Adam Taggart via Peak Prosperity,

This week's podcast sees the return of Mike Maloney, monetary historian and founder of precious metals broker GoldSilver.com.

Based on historical patterns and the alarming state of our current monetary system, Mike believes the fiat US dollar is in its last years as a viable currency. He sees its replacement as inevitable in the near term -- as in by or before the end of the decade:

All of this is converging with the crazy experiments the Federal Reserve has done.

 

I absolutely believe that there are economic consequences to this that are inescapable. The Fed is not just in a box; a trap has been set. And before the end of this decade, if there is still a US Dollar around it will not be this US Dollar. It will be a dollar that is tied to a very different monetary system.

 

The last three shifts in our monetary system were little baby steps off of the classical gold standard where it was fully backed. We went down to a 40% reserve ratio with the Federal Reserve in the United States during the Gold Exchange Standard. Then the Bretton Woods system didn't have a reserve ratio specified, but I believe the dollar was about 8% backed by gold by the time Nixon took us off of gold in '71. Now, the only backing that the US Dollar has is the promise to tax us all in the future: it is US Treasury bonds, or the Fed doing its quantitative easing and buying mortgage-backed securities.

 

And how corrupt is the notion that you can give some entity the power to have a check book that has a $0 balance and they can go out and buy anything they want with that and it just creates currency? That is corrupt in itself.

 

Think about how immoral this is. First of all, the Fed whipped up that currency not out of thin air but by indebting the public. They buy a Treasury bond or a mortgage-backed security, and now they own the mortgage on your house or they own a Treasury bond that you are going to work for in the future and pay taxes to pay off. And so they give all of this currency to the banks, and then they pay them interest to not loan it out or otherwise stimulate the economy. So they are giving them the gift of interest.

 

By the way, any profits that the Fed has at the end of the year are supposed to get turned over to the Treasury. Well, they are paying the banks interest that reduces the amount that they give to the Treasury by exactly that amount. So in other words, the public is paying those banks interest. That's where all of the interest comes from. We're not seeing those profits passed on to the Treasury anymore.

 

Anyway, I do think that this system is coming to an end before the decade is out. The other shifts in our monetary system were baby steps off of gold. Now we have to go from nothing most likely back to something. And it's going to be a financial, economic convulsion the likes of which the world has never seen. It is going to affect everybody on the planet. During the last three monetary shifts, it was only the world's central banks and big international banks that were affected and were worried. The common man didn't even know what was going on. With this one, everybody is going to feel it. Everybody is going to know it. You will either be a winner or a loser, but everybody is playing this game. 

Click the play button below to listen to Chris' interview with Mike Maloney (51m:18s):

Full Transcript
Chris Martenson:    Welcome to this Peak Prosperity Podcast. I'm your host, Chris Martenson and today we are talking with the host of The Hidden Secrets of Money, noted speaker, best-selling author on monetary history and gold and silver investing, the CEO of GoldSilver.com—we are talking with Mike Maloney. Somebody who I consider to be both a fellow educator and a friend in this business. Welcome, Mike.
 
Mike Maloney:          It's great to be here, Chris.
 
Chris Martenson:    I don't have many regrets but one of them
 

 

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Sun, 07/06/2014 - 21:07 | 4930296 TeamDepends
TeamDepends's picture

Tyler, come on, we've been saying that for six weeks now.  Where's our check?

Sun, 07/06/2014 - 21:24 | 4930325 COSMOS
COSMOS's picture

Let's see deeds to properties in Mallorca and Canary Islands, check.

Swiss safety deposit box with all dollars converted to Precious Metals, check.

Fueled Helicopter check

Jet at local airport fueled and on standby, check.

Family already offshore in the Balearic islands, check.

Dual citizenship passports distributed, check.

Continue pilaging and converting dollars to basket of currencies, check.

Buy more ranches in Brazil and Argentina as I liquidate my dollar positions, check.

Pick day for 2008 style meltdown, still on TO DO LIST.

what fucking shit do I give about America and the dollar, SUCKERS.

Sun, 07/06/2014 - 21:52 | 4930415 Anusocracy
Anusocracy's picture

I love the sound of the dollar death rattle in the morning.

Sun, 07/06/2014 - 22:18 | 4930474 Pladizow
Pladizow's picture

Ok, so what other capital market will have the depth required to replace the dollar within the next 6 years? This is chicken little sky is falling bullshit to sell gold!

Sun, 07/06/2014 - 22:45 | 4930567 Publicus
Publicus's picture

The world is switching to cryptocurrencies. They can't print it.

Mon, 07/07/2014 - 04:45 | 4930970 Squid-puppets a...
Squid-puppets a-go-go's picture

if a whole bunch of countries are using their own currencies, you have substituted depth of market with width of market, thus maintaining the overall volume

Mon, 07/07/2014 - 07:49 | 4931114 All Risk No Reward
All Risk No Reward's picture

Very few people understand the true value of Debt Money Tyrant debt instantiated dollar.

It is a societal enslavement mechanism.

Because people don't understand this, they conclude that the Debt Money Tyrants are going to hyperinflate the debt dollars BEFORE they enslave society to the debt.

This is wrong.

Every dollar outstanding is a debt (excepting coinage).

You can't "walk away from the dollar" anymore than you can "walk away from your mortgage" or you car loan or your studen tloan.

Well, you can still walk away now, but the tax hit you must pay is in debt money, too... so you still need it!

And when everyone starts defaulting, expect defaulting on the debt to become a criminal offence.

No, the people who own / control trillions in debt paper and trillions more in debt receipts (you think of debt receipts as "money") aren't going to zero out their wealth and bail out debtors.

They are going to enslave debtors and seize all their chit FIRST, THEN they may well hyperinflate and move to the next monetary system.  But only then.

Overlooking the deflationary spike pit that precedes the new monetary system is asking to be impaled by one of its spikes.

Mon, 07/07/2014 - 08:14 | 4931152 overmedicatedun...
overmedicatedundersexed's picture

if the pols decide a debt jubilee will keep them in power, they will do it - but they have been bribed and bred and educated that debt must be payed even if that debt destroys them. many here on ZH view debt held by .gov and many common folk (think student debt as one example), as created with nothing and is fraud-when this view gains power and common folk become aware of the true scam called public debt..well then those in .gov will have a chance to do the unthinkable..nullify debt.

Mon, 07/07/2014 - 17:57 | 4933283 All Risk No Reward
All Risk No Reward's picture

>>if the pols decide a debt jubilee will keep them in power, they will do it<<

I disagree.  Look at the Republicans in government who literally abuse their base's desires in order to further the agenda of the Debt Money Power THAT PUT THEM IN POWER IN THE FIRST PLACE.

They know this will turn their base against them, BUT THEY DO IT ANYWAY.

The Debt Money Power doesn't finance and promote people to pursue an individual agenda...  but the agenda of the Debt Money Power.

If a faithful servant gets removed from office, they will be taken care of in the private sector.

Politicians are Debt Money Power operatives...  nothing more, nothing less.

-------------------

The Money Power Seeks to Create a World System of Financial

Control in Private Hands Able to Dominate Every Nation on Earth

In addition to these pragmatic goals, the powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank, in the hands of men like Montagu Norman of the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the Bank of France, and Hjalmar Schacht of the Reichsbank, sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.

Carroll Quigley, Tragedy and Hope (Bill Clinton mentor, CFR historian)

Tue, 07/08/2014 - 15:28 | 4936517 mkkby
mkkby's picture

Only a sap thinks there will ever be a debt jubilee.  Debt is the weapon the banksters use to control politicians and every gov in the world.   They won. They own the world. 

The sooner you realize that the sooner you can join the rest of us in discussing how to protect what little we have.

Mon, 07/07/2014 - 09:45 | 4931341 ATM
ATM's picture

There is not going to be any deflation. Deflation destroys the government as they owe 17 Trillion dollars and have to have inflation to service it.

The power is in government. The power will do everything to remain in power and deflation doesn't accomplish that. Inflation and money printing prolongs their reign of terror so that is what we will have. They will also use the chaos caused by the dollars destruction as an excuse to assume more power - to keep us safe.

The same people will accumulate wealth and power during inflation as in the proposed deflation scenario. However the US has a national memory of deflation. We will never see that again. Our money printers will print and print and print. That's is all they know how to do. (Well they know how to print money and come up with clever names for money printing such as QE, twist, etc).

They have already shown their cards. They are printing and they will print until the end. 

Mon, 07/07/2014 - 10:57 | 4931525 TheReplacement
TheReplacement's picture

One objection.

Eventually they won't even pretend it is to keep us safe.  They will drop the pretense and it will be about keeping the children safe... from us.  That's the way of socialism.

Mon, 07/07/2014 - 19:29 | 4933401 All Risk No Reward
All Risk No Reward's picture

This is another excellent video...  An absolute MUST Watch to comprehend the mechanics of Machiavellian Debt Money Tyranny...

Debunking Money
https://www.youtube.com/watch?v=7_yh4-Zi92Q

No sovereign nation would ever allow this privately controlled Trojan Horse within its borders.

Therefore, the government must not be sovereign.

The borrower truly is SERVANT to the lender.

Sun, 07/06/2014 - 22:47 | 4930571 NoDecaf
NoDecaf's picture

LOL...how embarrassing. That's gotta be worse than shitting yourself on a blind date.

Every fucking day I trade pieces of paper from your precious "capital market" for real wealth.

Sun, 07/06/2014 - 23:32 | 4930674 Austrianhungry
Austrianhungry's picture

You are so right! The only place in the world where people use salesmanship is the precious metals market! Why didn't I see this! I'm selling out of gold and buying stocks tomorrow.

Mon, 07/07/2014 - 01:04 | 4930810 Spitzer
Spitzer's picture

The Euro is used by  more people then the USD

The Eurozone has more gold then the US

The Euro is China's biggest trading partner

Mon, 07/07/2014 - 01:10 | 4930819 COSMOS
COSMOS's picture

When the dollar is gone it will be awfully lonely with two vast oceans on either side.

Mon, 07/07/2014 - 05:03 | 4930980 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

The sun will rise up the next morning, just like it always has. =)

Mon, 07/07/2014 - 06:45 | 4931049 Reptil
Reptil's picture

and nothing to eat but BT corn. (and soylent green)

Mon, 07/07/2014 - 17:54 | 4933280 7.62x54r
7.62x54r's picture

If you have a decent .30 cal rifle, you will not run out of smoked hippie and hobo in your meat locker.

Stock up on ammo and valu-rite voka.

Mon, 07/07/2014 - 07:39 | 4931106 Incubus
Incubus's picture

I'm all for it;  no more consumer culture.

 

Better quality of life, and people will find more meaning to life, than, "buying shit," as Carlin said.

 

That is our meaning in life?  Buying shit?  The end can't come fast enough.

Mon, 07/07/2014 - 01:17 | 4930828 Soul Glow
Soul Glow's picture

The Eurozone has more gold then the US

The central banks have an equal amount of gold as the UST.  Does the population of Europe own more gold than Americans?  I imagine per capita it is equal.
Mon, 07/07/2014 - 03:40 | 4930914 Space Animatoltipap
Space Animatoltipap's picture

The eurozones' gold is supposed to be stocked in the US. In reality it is already for years hanging around the necks of Indian women ...

Mon, 07/07/2014 - 04:07 | 4930931 Ghordius
Ghordius's picture

I think the eurozone's gold is irrelevant, in this

the biggest thing about the eurozone is it's huge trade. nearly balanced trade. with the whole world

seen this way, the USD as-global-reserve-currency is a giant credit card, which allows the US to have (an) unbalanced trade (balance)

yet it's "powered" by foreign holders of USD, be them private or public hands. so it's a form of goodwill/credit

if you want, a form of affection, trust and belief in the capabilities of the US, it's people, economy and government to be able to provide deep, liquid and trustworthy capital, goods and services markets

this kind of feelings are like a huge rock or mountain. they don't crumble. they can only be eroded or regained, step by step, incrementally. if only just because those US capabilities too can't crumble, only be eroded or regained

Mon, 07/07/2014 - 09:48 | 4931350 ATM
ATM's picture

The Euro isn't used by more people than the Dollar.As the reserve currency basically the entire world uses the Dollar.

The Euro Zone doesn't have more gold than the US. They claim title to more gold, but they don't HAVE the gold.

Euro Zone is China's biggest trade partner though, but so what?

Mon, 07/07/2014 - 01:21 | 4930832 stoneworker
stoneworker's picture

What is the point of your "depth" if there dollar has no value...I can create a currency with all the market depth you wish simply by buying a good printer....

Mon, 07/07/2014 - 01:44 | 4930850 El Vaquero
El Vaquero's picture

Who ever said there had to be a replacement?

Mon, 07/07/2014 - 04:12 | 4930941 Ghordius
Ghordius's picture

correct. who needs a replacement? this goes all back to the belief in the Triffin Dilemma, i.e. that the world needs a giant unbacked/fiat global reserve currency

Mon, 07/07/2014 - 12:54 | 4931940 SDShack
SDShack's picture

Learn to think like a sociopath banker and you will understand why there needs to be a single world currency. It's all about control. You can't have control with multiple independent currencies, especially ones backed by something tangible.

Mon, 07/07/2014 - 03:43 | 4930917 Space Animatoltipap
Space Animatoltipap's picture

Perhaps don't follow Armstrong too much with his "depth of the $ markets". He is just a very shrewd smartass making a lot of money with his most aggressive communication.

Mon, 07/07/2014 - 05:54 | 4931012 barre-de-rire
barre-de-rire's picture

The greatest shortcoming of the human race is our inability to understand the exponential function

 

what took ages to come at this point, is so accelerating that you dont have any idea of the velocity the thing can go mad.


Imagine a big water pipe that feeds a football stadium.  The pipe is about to spring a leak that will get exponentially worse over time.  Imagine that when the leak starts it will drip one drop of water the first minute, two drops the next, 4 drops the minute after, doubling each minute without limit. This is an example of exponential growth. Now imagine that you are chained into a seat at the very top of the water-tight stadium.  The leak begins dripping exactly at noon Here’s the question: How much time do you have to free yourself from the seat and leave the stadium before the water reaches your seat at the very top? Think about it for a moment. Is it hours, days, weeks, months? The answer: You have until exactly 12:49pm. It takes this exponentially growing water leak less than 50 minutes to fill a whole football stadium with water. That may seem impressive but the really important part of the lesson is that at 12:45 the leak has only filled 7% of the stadium.  This leads you to think that you have hours and hours of time left before you are affected so you don’t work as hard on escaping as you should be doing.  Unfortunately, the nature of exponential functions means that the stadium fills up only 4 short minutes later.
by saying everytime not happen not happen not happen,  guess what... it is happening, economy worldwide by itself is something, but real goods market & oil & etc + geopolitics due to theres goods affects the economy. USA is starting foolish mloves because loosing central position of reserve curency + dont have excpeted oil & gaz supply. you import near 100% of what you use. you depend of outside. all combined, not sure you will go up to hillary...
Mon, 07/07/2014 - 13:59 | 4932205 SuperRay
SuperRay's picture

Yes, yes. Like the analogy of the turkey, who is so well fed and taken care of, right up to thanksgiving.

Or the boiling frog...

Maybe we need a boiling turkey..

Mon, 07/07/2014 - 17:06 | 4933088 Brit_Abroad
Brit_Abroad's picture

It's about the speed. Most of the time it looks like nothing much is happening...and then WHAM. Game over.

Sorry I gave you the down

Mon, 07/07/2014 - 07:29 | 4931091 Winston Churchill
Winston Churchill's picture

What depth is required for imaginary paper assets again ?

TPTB are only letting you play with THEIR money.Never forget that.

Sun, 07/06/2014 - 21:59 | 4930437 Jackagain
Jackagain's picture

Well...just WWIII...

Sun, 07/06/2014 - 23:49 | 4930709 Yen Cross
Yen Cross's picture

 In tern ational law has no place on tactical trading charts. Save your ideas for the rest of your "pool'side" manipulating girlfriends COS<>PLAY!

Mon, 07/07/2014 - 00:21 | 4930762 Antifaschistische
Antifaschistische's picture

I hope you're carrying around the instructions on how to get to the Balearic Islands.

....or, are you Bruce Jenner and trying to ditch your family on a deserted island while you fly off to Argentina.   Brilliant plan mate...brilliant.

Mon, 07/07/2014 - 05:02 | 4930977 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

Unintentional comedy at its finest. =)

Mon, 07/07/2014 - 08:01 | 4931129 TruthHunter
TruthHunter's picture

COSMOS

List canceled by:

1 Resentment from conspicuous consumption maxed out among locals, check.

2 Enemies created by hard assed, culturally insensitivity(just business), check.

Sun, 07/06/2014 - 21:28 | 4930344 tempo
tempo's picture

Only when a Republican is elected President will it end. 2016 Hillary, 2020 Republican elected and the $ dominance and the entitlement party is over. All hell breaks loose. Hell, that's 6 years from now. So party on. Dow 35000

Sun, 07/06/2014 - 21:32 | 4930354 COSMOS
COSMOS's picture

Dude it ends on everybody's watch, we have been in a decline for a while now, look at my post below at gasoline prices.

Mon, 07/07/2014 - 05:02 | 4930979 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

Doomsday prophets make me laugh.

Mon, 07/07/2014 - 05:57 | 4931015 barre-de-rire
barre-de-rire's picture

i am not a prophet, but, one day, you will die.

 

everybody have its timeline expiration date doomsday.

 

have phun, bitchez.

Sun, 07/06/2014 - 21:37 | 4930373 THX 1178
THX 1178's picture

The president has NOTHING to do with any of this. Period.

Mon, 07/07/2014 - 09:54 | 4931367 ATM
ATM's picture

I disagree. They have an accelrator and worn out brakes pedals. They can't stop it but they can slow it down slightly or speed it up. Either way this semi-trailer is going to crash intot the wall at the end of the road.

Sun, 07/06/2014 - 22:01 | 4930438 Fred Hayek
Fred Hayek's picture

Please step outside of the false dichotomy of red team versus blue team.

Anyone who still thinks that "If we just elect red/blue to the senate/house/presidency everything will be okay."

It's like you're playing Robert Shaw's role in a stage play of The Sting and you don't realize that you're the mark.

Sun, 07/06/2014 - 23:29 | 4930663 TeamDepends
TeamDepends's picture

Romney was the man!!!!  (cries like a pussy).  (Blubbering)  He'd of shown those ISIS punks what's what.  (Embarassing public display of emotion)  Jeb will mop the floor with.....

Sun, 07/06/2014 - 22:57 | 4930595 NoDecaf
NoDecaf's picture

"Only when a Republican is elected President will it end. 2016 Hillary, 2020 Republican elected and the $ dominance and the entitlement party is over."

 

Like medicaid part D?

 

derp!

Mon, 07/07/2014 - 09:23 | 4931296 Pool Shark
Pool Shark's picture

 

 

"Don't forget Poland."

 

Mon, 07/07/2014 - 07:34 | 4931096 FightingtheFed
FightingtheFed's picture

temp is correct in a sense.

 

The Federal Reseve is on the side of a Totalitarian Gov't. Gov't for the rich bankers and Wall St...

While one may argue that Republicans of late have obliged these demands with the creation of DHS and some of the incredible shit in the NDAA, Repbulcians are supposed to be for samller gov't and balanced budgets..

Can we imagine a Repbulican running for the President on Austerity and balanced budgets now? lol

The Federal Reserve has fucked this country up for eternity. Destroyed it actually and if a Conservative did get elected the Fed would then raise rates and all hell would then break loose...

 

Anyway I know the comment is in jest but there's a lot of insight that can be drawn from your comment temp0.

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