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Mike Maloney: The Dollar As We Know It Will Be Gone Within 6 Years
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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No biggie? You've obviously never been caught trading in meth or heroin...
Neighborhood Watch.
aka watch your neighbor, report and tell (or take).
I was being snarky...sorry. Referring to our failed "War on Drugs", and the fact that I could, if I wished, go out right now and return in a half-hour with both meth AND heroin, if I chose.
Does anyone still believe this dross ?
We are all interconnected for better or worse. A bad apple can spoil the whole basket. Welcome to the world our leaders have designed or allowed to form. Whether by design or merely as a byproduct of globalization we have weaved a web of financial transactions that circle the globe. Over the last several years as money was printed by the central Banks it was not contained in the countries where in was printed.
This money flowed across borders influencing and distorting markets and prices across the world. Some people have been calling for a "world currency" for years. the saying "one should never let a good crisis go to waste" means that a meltdown with high levels of fear would present a perfect opportunity and catalyst to advance this agenda down the field. Remember many people with agendas have a lot to gain when a major shift in the currency markets takes place. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/02/contagion-may-lead-to-new-world-c...
The little kids chasing earnings I emplore you to defy facts! 15.7 forward/ 19.862 stated!
I hope the Hamptons were enticing, I've just started with you. Kiss your whores goodnight bitchez.
Yes the assclown in the skyline apt, sucking the cheery tomato out of his Whores moputh before the 9:30 am opening.
It seems all doomers and gloomers are in a ferocious competition for the most idiotic forecast :
Jim Willie
Gerald Celente
Chris Martenson
Eric Sprott
Harvey Organ
David Morgan
etc
Watch out !! more than one are only bumper and dumper !!
Good luck !!
Can anyone point out how a diminishing trend in capital formation is anything but a leading indicator for advanced economic/political sepsis?
More like stenosis, eh.
Greg Hunter and John Rubino
https://www.youtube.com/watch?v=YxOOksLT9K8
Published on Jul 6, 2014
http://usawatchdog.com/money-bubble-w... Author of "The Money Bubble,"
Join Greg Hunter as he goes One-on-One with John Rubino of DollarCollapse.com.
Jim Sinclair has to be the worst of them all. His recent $50,000 gold call is absurd along with most of his calls over the past several years.
Although the majority of these people are telling the truth about banksters and monetary history, they are still mostly driven by greed.
If gold did ever rise to $50K and silver to $500, that means everything else would be in the shitter and the world would be a very dangerous place. I don't think anybody wants that.
Good luck !!
Many people who realize the importance of gold as a wealth asset should consider the freegold perspective. It is different than the usual gold standard approach to gold.
We believe gold will be used as a 'reserve' by central banks but they will not 'back' their currencies with the metal.
They will keep it as an asset and if the currency needs to be defended, gold (at a much higher price) can be sold to buy the currency in question. This would save it if the currency was being shorted by a George Soros type actor.
Using gold in this way would allow gold to find a high value and this appreciation would be favorable to the central banks as they own gold.
Clearly in our current system gold is the enemy of paper and central banks are all about paper. In the future after a failure of the current system we see gold being used in this way. It is a powerful toool to the central bankers and allows all savers, rich and poor, to save in an asset that has a built in anti-inflation mechanism.
When central banks declare that their currencies are worth a certain weight in gold it sets off a struggle to keep the currency at that value. It begins a chain of devaluation and recurrent collapse of currencies around the world. If gold was just one asset on the CB balance sheet it would not even be needed for the CB to declare how much gold they have. As long as they could bring a required amount to the market to defend it in an emergency they could keep the currency at the value they wish.
It requires a good deal of thinking to appreciate this mechanism but we believe the ECB was set up with gold on it's balance sheet to prepare for such an event. Right now the EZ has 10,800 tons of gold. Even at current prices it is their #1 asset. If the dollar were to go away the value of gold would be 'everything' on the asset side of the balance sheet of the ECB. The new dollar would (hopefully) have 8133 tons and could print all needed currency for the country to function internally. As long as international trade balanced then no gold would be needed to settle with other countries.
If there was an imbalance the gold could be used unless the CB in question was willing to let the currency weaken.
Fofoa has been writing about these ideas for 5+ years. There is still more to examine but a lot of ground has been covered and his work is worth a (long) read.
No shapeshifting tonight lasvegaspersona?
YC
I'm not sure what you mean. I'm a freegold student and have never pretended to be anything but that.
I don't play any games and I'm not a finance professional....just another guy trying to figure out what is happening and the best thing to do to protect the family. I sincerely think freegold is the correct way to view the world. It is a lot more than just 'very high priced gold'.
Really? Dave you've waffled every time I've asked you opinion.
I've got scores of your comments. One day Dave likes stocks, the next Dave likes gold.
Make up your mind Dave. Hey Dave let me ask you a question? Do I ever publish charts on Z/H?
DO I EVER PUBLISH MY TRADING IDEAS ON ZERO HEDGE Dave?
YC
I think you are confusing me with 'Vegas Dave' or something like that. My name is not Dave and I have never posted anything about stocks. In 2011 I post some things about AGQ but I am interested in the monetary system now and have no interest in stocks except as a hedge for my physical. If we get a crack up boom I could use the stock cash to carry me over until gold finds it's real value.
ASk DCBR hae knows me from fofoa's site.
If so, I appologize, and owe you a tall cool one.
I don't recall ever responding to you by name? Please enlighten me. You Norks and Chinese are a lot of fun.
Mmmm, is he going to like that tall cool one! Yen, lvp is OK! I'd love to sit down w/ both of you for one myself, except I had to give up drinking, frown...
GMT+8 from this post. Clearly the European Union isn't sleeping well at night.]
Ask that little lying clown Junker about telling the truth!
it's not just the us dollar which will disappear, but the country itself. the usa will be dismembered before this decade is out. it is one of the genocidal goals of the ziocons - the evil satanic creeps in london, nyc, and jerusalem. of course those who call upon the name of the lord (jesus) will be saved.
The European Union is the usd assfuck!
Reverse REPO's overrnight swaps agreements. General repos, ECB balance sheet vs Fed. fuk wad? I'll enjoy ripping you into an asshole!
And what exactly is the world going to agree on Mike.....?
What seems to be coming is a wave of capital to the USA.....and that strong dollar is what will fuck the USA up even more than it already is......
Last week I believe that dollar broke the 80 support level. Much depends on what the Wabbists do. Will they follow through with their veiled threat to terminate the Petrodollar?
Maybe 6 more years of this? My head is about to explode. Some days I'm apoplectic at just how quickly the society has morphed into outbreaks of cancerous growths onto seemingly every societal pillar. I know it's easy for someone to make such a declarative statement, but name a milepost, a marker, a societal anchor that is not deeply corroded.
I hear you but where we are at is the culmination of a couple centuries and many many many decades of faltering that has led to this. It started with the whiskey rebellion almost immediately after the formation of the U.S. The whole civil war thing was a very huge deal. Some of the more recent examples are the 1913 bills and the gold window a short while ago. It is unfortunately a baby step decline. If these changes happened within a year or two there would be instant revolt. Over enough time no one knows better. Since our country's creation almost every few generations looks like an institutionalized version of the previous ones. My biggest fear is this will actually play out as designed over many many many more decades. 6 years is optimism.
I, too, admit to having some doom and gloom fatigue - but it's tough to look at the dollar and see trends that would tend to extend its life.
Of course, all thinking people know that you have to deficit spend [have to!] during a recession to prime the pump, because it arguably sorta worked many decades ago in a totally different global economy when the frn was backed by something...
But the ability of the US to enforce the FRN's international reserve status/petrodollar is slipping faster than we can kill the people who want to be free of it...
I also don't know how you strengthen the economy by massive printing all while importing foreign tech workers, and millions of unskilled laborers who drain the social welfare systems, all while the Baby Boomers are going to demand MOAR beneys as they take out far, far more than they ever put in, and manufacturing continues to decline and be offshored - along with an increasing amount of white collar jobs.
Giving the junkie more and more heroin to preserve the status quo works - until it doesn't.
Good post, well-stated. I see the same things, but feel quite powerless to do anything about it.
It's all very discouraging.
Uh, like, hey man, will this cause inflation or deflation? Should I buy gold now or wait until, like, you know, the dollar collapses?
Based on your level of "narcissism", you should probably let the big boys handle the issue. We like to keep things "situational" as opposed to problematic.
Thank God that I have bitcoin! I no longer have to worry about such calamities!!!!!!!! Now that more and more corporations will be accepting it I know that I am fiscally secure!!!!! TOOOOO THEEEE MOOOOOOOOOON!!!!!!
Everybody is making predictions these days. Seems kind of obvious the petrodollar is in trouble. In fact, US foreign policy is ensuring it's demise. It's sort of like the scene in Blazing Saddles, when the Sheriff points the gun to his head to keep from getting lynched, but this time he just pulls the trigger.
I also wonder how many of the down arrows and negative comments are the result of Project Minerva?
I think the US is not the place to be come any crash. TPTB have already readied themselves for people control. They wont let you win. Gold or not.
Frankly I don't know where to place my wealth. Some gold and silver-- a property, the rest cash spread between Aussie banks.
I can't risk too much bullion since govt and Tax Office can change the rules.
If economies crash so will energy demand. ..which keeps me out of oil gas shares..
I would buy 10 years food supply except it dont keep.
If You are healthy and lucky enough then you would have a small farm with own water supply a backup generator and your bullion coin ' buried somewhere.
Agreed. Wish I knew what to do... = (
Aussie banks? Caution. Research needed.
Doubt CBA will surivive... wonder how the rest will do? mind you ANZ's got the yuan swap trade so will probably get bail ins and bail outs and tick along.
Actually, wheat berries will store almost indefinitely if packed away correctly. Mylar bags with O2 absorbers placed inside 5 gallon buckets. A 5 gallon bucket will hold about 33 pounds of wheat, rice, beans. Be warned though, a years-worth of food will take up quite a bit of space. Do not store brown rice though. It will go rancid.
If you can learn to garden and begin canning, you can round out the gaps in what you can pack for long term storage. Add livestock to that, and you're in better shape.
I am preparing for the loss of a job, and increasing food/energy prices. I've downsized to the smallest house I can on a small acreage already. I intend to be a small target for the IRS/government.
Will be anyone unhappy, if these green private unconstitutional bills disappear (except the people from ethnoreligious tribe, with two passports)?
Will anyone be unhappy? Why yes, because there is a damned good chance that supply chain breakages will be following.
yes the real price of bullion is multiples higher... but will only be discovered if or when the naked paper game blows up.
Good interview guys, but next time, put on a pot of coffee...
No matter how many times one thinks about the MAD Money As Debt system, the evil absurdity of that enforced fraud is still striking! As Maloney pointed out: "the public is paying those banks interest" for money made out of nothing as debts, in such a way that the "profit" that the Federal Reserve Board could have otherwise made is instead transferred to the private banks, rather than be returned to We the People.
keep spreading the word.
The scum at the top require ignorance and censorship to run their system. Open eyes, open minds.
But he also said that 3 years agi, so that would mean only 3 years to go
" dollar ... gone within 6 years"
... to be replaced by the Susan B. Anthony ... or perhaps the Carmelo Anthony ... ?
once we look at the other side, the thing so many worry about then jump to fiat failure..DEBT, that is what will go away- when it does the impact on ins co, pensions -401k, banks will be massive, but the .govs will have 0 to no debt, then the princes of .gov will become royalty, and banksters will be bk. that is the solution that the FED and CB's most want to avoid, for they die on that day...corruption may just buy off the pols to keep that solution off the table.
Mmm. I think they are both wrong, though only in magnitude, not in perspective.
Ladies and gents. Look at the British Empire as an example. Empires do not collapse in a day... it took decades for the British Empire to contract back to be essentially a vassal state of the United States. The vested interests will hang on till grim death.
Put another way. Expect this to continue for the remainder of your lives.
The dollar died a LONG time ago Mike.
1913 (creation of the Fed), 1933 (-40% gold confiscation/re-valuation) and 1971 (100% removal of gold backing) was the final nail in the coffin.
6 years? The crony-capitalists and their political minons will be lucky if they are still able to bribe corrupt foreign nationals with dollars 6 months from now.
Its game over when the PM`s are ALL gone to strong hands.
Because then the price can only go up, regardless of any manipulation, supression or other frauds.
I cannot see this current system holding until 2015 so that makes my best guess less than six months.
Its not a big issue , its just more plodding at work and stacking and prepping time all on the cheap.
The longer it takes to drop the better I bounce back !
I am trying to get new person every week to do the same as we are doing , as every coin counts.
There are NO five kilo silver bars available from my supplier and the gold has dropped from .999 to .916 quality which I am considering positive as it can only mean things are nearer to the end than the start
They label Mike Maloney as a monetary historian because he read a few books on Austrian economics after his prior business has failed and has started a gold and silver (including jewelry) business as well as selling end-of-the world supplements. He's nothing but a charlatan, so please everyone, pay no attention. Let me guess, the next article will be about what David Morgan has to say.
We don't need the Dollar. We need Vicodin.
Although I think it is worthwhile to listen to Chris Martenson and Mike Maloney, I continue to believe that they have been personally too successful to be willing and able to face how bad things actually are. For instance, Maloney states the old-fashioned view that wealth is not destroyed, but only transferred. Actually, the economic systems based on strip-mining the Earth's natural resources as fast as possible are destroying wealth. All the other symbols and stuff are not truly "wealth," but rather only the illusion of wealth, due to the way that the fundamentally fraudulent financial accounting systems can create "money" out of nothing to "pay" for strip-mining the planet's natural resources, which are actually destroying wealth.
Another example is where Maloney speaks about his personal circumstances, owning land, with its own water supplies, no to mention his own accumulated gold and silver, etc.. However, given how the established systems could collapse into chaos means that the other 99% of the population which are not prepared, and could not become prepared, even if they wanted to, would overwhelm the 1% of the population that was able and willing to try to be prepared.
Maloney could not cope with the government shifting into martial law. Maloney could not cope with the rise of disorganized crime gangs, desperately marauding, as their only way to perhaps survive the overall collapse into chaos.
Basically, NOBODY could be prepared for how insane the situation could become, as we hit Peak Insanities, as the result of reaching Peak Everything Else. Maloney continues to look at historical cycles, whereas the real world is on an exponentially expanding spiral. While there may be repeating cycles, they will become spirals of social storms which are orders of magnitude bigger than anything else which previously happened in human history. The possibilities for the "war cycles" to spiral out to become orders of magnitude greater than ever before, so much that nothing in history could be compared, is the most extreme example of how understanding the future by looking at historical cycles no longer makes much sense, when those cycles are actually spirals, that are spinning up by many orders of magnitude.
Maloney likes to continue to believe that there will be winners or losers, and therefore, recommends how to become a winner. In my opinion he does not fully face the degree to which everyone is going to become a loser, with no winners. (I do not consider those who may survive in underground bunkers as being much of a winner.)
I believe Maloney correctly predicts how the end of the American Dollar as the global reserve currency is happening in slightly faster and faster ways, which will become still faster in the foreseeable future. He is predicting unprecedented social storms, but, in my opinion, not fully comprehending how BIG those social storms are going to become. Maloney is relatively successful because he continues to be able to operate inside the established systems, with an audience and market that share in that. His metaphor regarding the roller coaster ride is correct, but I think he indulges in irrational hopes that that roller coaster is not going to actually jump the rails and crash more spectacularly.
MY BASIC VIEW CONTINUES TO BE THAT MONEY IS MEASUREMENT BACKED BY MURDER, WHILE MALONEY MAINTAINS BELIEFS IN THE BALONEY OPINIONS ABOUT WHAT MONEY "SHOULD BE." SINCE MALONEY DOES NOT FULLY FACE THAT FACT THAT MONEY IS MEASUREMENT BACKED BY MURDER, OR THAT THE DEBT CONTROLS WERE BACKED BY THE DEATH CONTROLS, HE DOES NOT TEND TO GO TOWARDS MORE FULLY COMPREHENDING HOW THE RUNAWAY DEBT INSANITIES ARE GOING TO PROVOKE DEATH INSANITIES.
ALMOST NOBODY IS ABLE TO IMAGINE THE DEGREE TO WHICH PEAK EVERYTHING ELSE IS GOING TO CAUSE PEAK INSANITIES TO MANIFEST, BECAUSE ALMOST NOBODY IS WILLING AND ABLE TO FULLY FACE HOW THE ESTABLISHED SYSTEMS WERE BASED ON ENFORCED FRAUDS, THAT ENABLED ATTITUDES OF EVIL DELIBERATE IGNORANCE TOWARDS WHAT THEY WERE REALLY DOING.
PARADOXICALLY, THE MORE RELATIVELY SUCCESSFUL PEOPLE WERE WITHIN THE ESTABLISHED SYSTEMS OF ENFORCED FRAUDS, AND WERE ABLE TO PERSONALLY BENEFIT FROM BEING ABLE TO HAVE DONE THAT, THE LESS ABLE THEY TEND TO BECOME TO MORE OBJECTIVELY ASSESS HOW THEIR ENTIRE CIVILIZATION WAS BEHAVING IN CRIMINALLY INSANE WAYS.
Yup, the planet and all its constituents will eventually become one big glooey glob. The Oracle predicted it.