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Currency Collapse
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Currency Collapse
Posted with permission and written by Jeff Thomas (CLICK FOR ORIGINAL)
Cash is a scarce commodity in Greece.
In June, Greek banks declared a surprise limitation on how much could be withdrawn from an account. At present, the government still limits the cash withdrawals of its citizens.
Of course, this is just the most recent development in a series of events that make up the cash squeeze. In response, Greeks have done what all people do when they cannot get enough currency – improvise.
Since 2010, several alternative systems of payment for goods and services have cropped up in Greece. One is TEM, which allows people to accrue monetary credit online and then use that credit to pay others. Another is the Athens Time Bank, which logs time units and allows individuals to pay each other with their time; the services provided can be anything from language lessons to medical consultations. And still, other systems are popping up, as Greeks, cut off from their own savings in the banks, seek out any method of payment other than the euro. As expected, barter is becoming commonplace.
Greece is right where Weimar Germany was in late 1922. The 1919 Treaty of Versailles required Germany to pay reparations for WWI. But after losing the war, Germany was already on the ropes economically, and the conditions of the treaty amounted to an unpayable level of debt. As it became apparent that the debt was impossible to pay, the Allies squeezed harder. Economic conditions in Germany dramatically worsened, not unlike those in Greece today, and for the same reason.
Germans did their best to sidestep the economic squeeze. As the cost of goods and services was rapidly rising (on a daily basis), they learned that it was best to spend Reichsmarks as quickly as possible on anything that was holding its value better than banknotes were.
Interestingly, in 1922, virtually no one felt that currency was the problem. German politicians blamed the Allies, particularly the French, for demanding that Germany fulfill the terms of the treaty. Bankers often blamed foreign currencies for rising against the mark. And the people of Germany generally placed the blame on the most immediate symptom – the fact that costs were rising more quickly than wages. Although they were pleased when their own wages went up, they wanted the prices of commodities to remain the same. The common people therefore blamed the merchants (particularly the many Jewish merchants) for raising the prices of their goods every time wages increased. They called it “Jewish greed” and failed to understand that every time wages increased, the cost of production increased, and in turn, this increase was passed to the merchants.
In 1922, as in 2015, most everyone failed to recognize that monetary movement is circular in nature, not linear. All payments, for all goods and services, impact one another in a domino effect.
The provision of goods and services is the lifeblood of any economy. Those who offer goods or services and those who pay for them create wealth. This is the natural order of economics. However, if currency isartificially pumped into an economic system – through the printing of bank notes, as in Germany in 1922, or through the provision of bailouts, as in Greece in 2015 – no goods have been created, and no services have been performed. The injection of currency fails to improve the economy; it makes the situation worse.At some point, the money tap must be shut off, and when it is, a crash takes place. The severity of the crash is directly proportional to the degree of currency injection.
So, as long as we’re comparing parallel events, what else happened back then? Well, while most people in Germany were experiencing a steady decrease in their standard of living, farmers seemed to be holding their own. This, of course, was because they remained productive. They created essential goods for sale to others, so they maintained their living standards. In the autumn of 1922, while most Bavarians could not afford to attend Oktoberfest, the beer halls still did acceptable business because of the farmers who came to town for the celebration. However, city dwellers deeply resented those farmers for buying the beer that they themselves could not afford.
So great was the resentment that the prime minister of Bavaria submitted a bill to the Reichsrat to make gluttony a public offence.
In 1923, as the Weimar inflation grew to the point where city dwellers were starving, many people went out to the country to steal the produce farmers had worked to grow. The city dwellers’ resentment was so high that many raiders even killed farmers out of hatred. Further, since they couldn’t take the farmers’ cattle back to the city with them, they slaughtered them in the fields out of spite. Of course, by destroying thesource of the food, they assured that they would receive even less in future. Many starved.
As stated by British Author Adam Fergusson in When Money Dies, “It brought out the worst in everybody…. It caused fear and insecurity among those who had already known too much of both. It fostered xenophobia. It promoted contempt for government and the subversion of law and order.”
Further, as stated at the time by Sir Basil Blackett, controller of finance of the British Treasury, “Each class in Germany thinks that the burden of taxation should fall on some other class.” (Does any of this sound familiar?)
If Greece in 2015 mirrors Germany in 1922, then we might expect Greece in 2016 to resemble Germany in 1923.
But what about the rest of us? We’re not in the same financial state as Greece – at least not yet. But the whole of the EU, the U.S., Canada, and many other “First World” countries are following the same destructive economic path. We just aren’t quite as far along as Weimar Germany in 1923.
So, what happened next in Germany?
· Public demand for a mandatory redistribution of wealth increased.
The desire for redistribution of wealth has become a common cry, and particularly in the U.S., where a presidential election will take place in a year and some candidates are fanning the flames on the issue.
· Any movement of currency had to be reported, then authorized.
Currency controls are being implemented, one after the other, to limit people’s ability to move their own money. Most threatening is a plan to eliminate cash so that money cannot be transferred without the permission of the banks.
· Importation was regulated.
Politicians in the EU and U.S. are increasingly speaking of the need for protective tariffs.
For decades, political leaders have been squeezing the economy for all they can get. As they’ve reached the point of diminishing returns, they’ve done what politicians always do: increase debt to prolong and increase their intake of wealth.
These actions can be likened to those of a farmer who, wanting more milk than a cow can produce, milks it dry, and then, refusing to admit his folly, starts draining the cow of its blood. He may claim that the increasing need will be satisfied by increasing the removal of blood and, on a temporary basis, this claim will allow him to continue making use of the cow. However, it is a certainty that, at some point very soon, the cow will collapse.
This was the case in Germany in 1923, and this is the case in much of the world now.
Most people have no idea what really happens when a currency collapses, let alone how to prepare.
We think everyone should own some physical gold. Gold is the ultimate form of wealth insurance. Its wealth preserves through every kind of crisis imaginable. It will preserve wealth during the next crisis, too.
Please email with any questions about this article or precious metals HERE
Currency Collapse
Posted with permission and written by Jeff Thomas (CLICK FOR ORIGINAL)
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Jeff Thomas is British and resides in the Caribbean. The son of an economist and historian, he learned early to be distrustful of governments as a general principle. Although he spent his career creating and developing businesses, for eight years, he penned a weekly newspaper column on the theme of limiting government. He began his study of economics around 1990, learning initially from Sir John Templeton, then Harry Schulz and Doug Casey and later others of an Austrian persuasion. He is now a regular feature writer for Casey Research’s International Man and Strategic Wealth Preservation in the Cayman Islands. |
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The United States did go through a currency collapse during the Civil War...actually it was Confederate currency which collapsed...but if you have an uncirculated Confederate bill..you have some good money...moral of the story...keep those crisp dollar bills...they will be worth something in the future!
Why oh why didn't I just hoard cash -- actually physical paper dollars -- instead of going out and buying an ungodly amount of silver (more than I could move without a dolly) and more gold than I'd want to fall in a creek with it in my pockets? Everybody was saying, "The dollar is going to collapse any day now!" But it didn't. It's not collapsing now, or looking much like it will any time soon. It just keeps getting stronger.
USD is NOT EVEN prone to "catastrophe" much less "collapse" because every other possible currency or financial asset that holders of USD and USD financial assets might want to go to instead ARE FAR MORE RISKY than the USD and USD assets. China is a black box of hyper debt and autocratic interventions, and the Euro will be lucky to survive the spiraling crisis in Europe.
What other options are there ? NONE
So in fact, if the world hits hard times, then OTHER currencies and assets will SELL OFF and capital will seek safety in the USD and USD assets, so they are EVEN SAFER in spite of all the problems in the USA.
Nobody in their right mind is going to keep cows when they can keep swine! Shoot your predatory neighbors and feeds 'em to the cloven hooved filthy swine.. never have to turn the little piggies out into the fields.
Mmmm... Schweine Braten mit Kartoffeln und erbsen!! Was hatten Sie gerne? Ein Reisling oder Bier damit? Und noch dazu, veilleicht eine stuck Obst Kuchen?
In a collapse the masses of zombies will be busy raping each other until the twinkies and pepsi runs out. Then they will be to weak to move. then they will lay down to die. Just like in New Orleans. There will be no mass exodus.
i have a sudden longing for twinkies and pepsi.
"Hold your real assets outside of the banking system in a private international facility."
Not feasible for most of us.
we were able to experience a little micrcosm of apocalypse in the aftermath of hurricane andrew in south florida. once the food in the stores runs out the desparate get predatory. i t was really important, in destroyed neighborhoods, to set up a military style perimeter with 24hr alert. the good news is most people cooperated but don't ever underestimate the predatory nature of man. if the feds didn't show up with food and water everythig would have broken down with in a coupla weeks. the city is no place to be during a disaster, natural financial or during war. in several fun conversations about the reset everyone has always come to the conclusion that borders would have to be enforced on the island and emigrants from other islands would be turned away or shot.
...don't ever underestimate the predatory nature of man.
Don't ever underestimate the predatory nature of Obama sons.
A currency collapse? Thats where the banksters get their government drones to go door to door looking for anything of value. In hope of keeping their gravy train in motion.
Think that stall thing over folks. Its the only thing regular people have any control of. They do have total control over everything that has been produced. We can either keep producing or stop.
Most financial topics are written about in hophead garble-de-goop.
This is a model of clarity.
Nice work.
Do you really think there is enough silver in circulation to complete transactions for, lets say, a dozen people? What about daily transactions for a major metropolitan area of 25 million?While I agree with the sentiment of fiat backed by precious, the practicality of the notion is absurd and childish. Just about everyone on this forum has EMBRACED the world wide electronic plantation![credit cards]. This ends with all your cards and passwords being implanted in YOU. You will "receive" this mark- on account of your own vanity.Unless you repent, and receive the Lord Jesus Christ as your redeemer, His Holy Spirit will not protect you- i9n these last days.
All of Man's systems of self-rule [satanism] have failed and are coming to an end - just as written in the Bible.
#9, #9,,,#9...
It's important not to go into panic mode about the possibility of a dollar collapse. It doesn't collapse in a vacuum! Ask yourself what exactly is the dollar (or any currency, come to that) collapsing against.
http://barlowscayman.blogspot.com/2014/02/might-us-dollar-collapse.html
An engineered currency collapse and the roll out of the UN Agenda 2030......
http://beforeitsnews.com/conspiracy-theories/2015/12/as-events-spiral-ou...
Physical gold, yes. But don't neglect the silver.
Gold is good for storing larger amounts of 'value'...it is the money of Kings. But most people don't live or spend like kings, and gold might tie-up too much wealth to be useful to the average person.
Silver, a sort of 'gold lite', has a better track record for the types of day-to-day transactions most of us will be engaged in. It allows the smaller units used by most folks to be measured out. Silver coins have always outnumbered the gold ones in circulation in economies that used them.
Economies that use gold almost always also use silver, so if gold goes up as many say it will, silver goes with it. A bet on one is really a bet on both, so why not stack now while prices are where they are? EVERYONE can afford some silver, even if gold is still too 'rich' for them. This situation will NOT last though, and pressures on the silver price may become stronger than on gold, as silver is actually CONSUMED industrially, meaning supplies go down. Gold just gets recycled, and most gold ever mined is still around somewhere today.
"...as the Weimar inflation grew to the point where city dwellers were starving, many people went out to the country to steal the produce farmers had worked to grow. The city dwellers’ resentment was so high that many raiders even killed farmers out of hatred. Further, since they couldn’t take the farmers’ cattle back to the city with them, they slaughtered them in the fields out of spite."
A shining illustration of why John Wesley, Rawles will become John Wesley, Dead. His sycophant, 60-IQ religious fanatic-disciples, as well.
Starving mobs WILL overcome "preppers" who've moved to rual areas in the deluded belief that they'll be safe there. "Organizing" and "training" won't be enough.
Sorry to shatter anyone's cherished delusions, but yeah.
And your poof of the military capabilities of each group is what?? Sounds like something pulled out of your smelly ass..
I'm sorry I even posted anything, really.
Lesson learned.
It was conjecture nothing more, unworthy of a post.
Try it bitch.
Nice.
I understand ZHers don't like to hear it. They always seem to take it personally when anyone warns them, but I have no stake in the outcome of whatever good or bad thing may befall you.
You don't get it. Gangs are worldwide with networked, global leadership. They have access to military-grade weaponry now, much of it supplied by sovereign governments. They will use it.
If they suffer staggering losses along the way, then so what? They already do, it's their culture. If you are tied to a property and they have an interest in it, they'll get to you and yours one way or another, it's just a numbers game to them. Gangs are rooted in a death culture, and members start down that path very early in life, as young children.
But anyway, so, back to the bravado, "try it." Legions WILL try it. And, eventually - unless you have an armored brigade and an A-10 squadron at your routine disposal - they will succeed.
But good luck.
So what is one to do? Nothing? I love my family too much not to try. Maybe one could leave like the other poster suggests, however, for many of us that's not an option either. Therefore, we're forced to our homes snd communities and attempt a defense against the golden horde. If you want to give up and roll over, so be it. Don't try to convince me that its pointless
Don't give up or give in, Get out while you still can.
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Silver 1oz Canadian Maple Leaf 2015 Master Box (500pcs) - €7,775.52.
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All major credit cards accepted. Sale ends 31st December 2015.
Bought gold at $600 an oz. way back in 80's and it doubled but stock market did much better. Gold is okay as protection against momitary collapse but not a good investment. It;s all in the timing.
"Greece is right where Weimar Germany was in late 1922."
How can you tell this is Sponsored Content?
Jewish merchants weren't the problem. Jewish bankers were.
My,my,my...behind every problem is a Jewish person..what a great cop out when you don't understand a problem or how to solve it...just use the blame game...well done!
I am in the process of buying several 70s era "pimp suits" When TSHTF I"ll be the cool cat on the corner selling or trading 1lb packages of homegrown hamburger.
Word of caution , those German farmers weren't armed , American farmers are very well armed
Yeah, but American Farmers rent half their land and own even less, their bank does.
Sorry, but... the cows don't live in houses with the armed farmers do they? Aren't the cows more risk of attack in the fields at night than the farmers are asleep at night in their houses? Thieves usually don't knock on the door during the days.
I wish I could downvote you -100, gosh your an unimaginitive dolt.. You have to live inside city limits to be that dumb..
Us hillbillies done invented a radical new containment system, we call them barns. They're like a house for animals
And the inner city mob isn't?
Inner city gangs are networked and have global leadership with access to weapons most us can scarecely dream of or only see in books. Much of their weaponry has been supplied by soveriegn governments, and is from military arsenals.
But good luck with "defending the homestead."
People confuse a Zombie Apocalypse type disaster and a great depression, economic disaster.
Zombie Apocalypse,Nuclear war yeah everyone is fucked.
Depression ,Economic disaster, most people will head to the cities because that is where the relief agencies will be. Even in Germany most of what they are talking about happened within 20 miles of Berlin, There were no mob armies roaming the country. The gangs you are referring to will stay in the cities and fight to control the allocation of resources ala Mogadishu . I don't see them marching 60 miles to kill a cow, but what do I know?
Matching convertable with leopard skin print upholstery with the hanging dice ?
And the lesson to be learned here? Keep stackin.
+1 and keep some cash next to the stacks. for the simplest of reasons: you don't want to be forced to sell your stack by eventualities
Addendum to your perpetual propaganda:
No monetary system that has been based upon gold has ever been successful,
OTHERWISE IT WOULD STILL BE IN USE.
IRREFUTABLE FACT
Regimes will ALWAYS debase whatever is used as money/currency (including even physical gold/silver coins) and will ALWAYS spend far more money than they collect in taxes by running ever-increasing debt loads.
No monetary system that keeps the printing presses rolling 24/7 and that does not require people to work for their money will last long either?? Its about tethering money to something you have to work to produce. FUCKING DUH... We are simply human and cant handle money, so everyone should have to do SOMETHING for it??? It was far less out of control and a much more inviting place to live under the gold standard... not so much DISTORTION of Power like we get today. The early creation of the FED was the real disaster and later the departure from Exter's pyramid without explanation or transparency with the right to criticize that has already or is really going to fuck things up for our future.
The ONLY monetary system that you will ever live under is fiat, NOT backed or based upon gold, and EVERY regime is going to run its debt levels up endlessly.
That is reality, no matter how much it sucks, like cancer, aging, and the infinite number of other nasty shit that we ordinary people cannot change but must endure.
The ONLY thing that ordinary people can do is use their wits to improvise, adapt and find ways to EARN INCOME, preserve their savings and survive.
Burying money in gold coffins is not going to help.
"The ONLY monetary system that you will ever live under is fiat"
Wow your going to get blind sided... Eventually there will be a backed currency offered and it will act like a magnet just like the dollar did.. Its only a matter of time. Its Americas Achilles heal if anyone cares to notice. Time will tell the truth. Anything that is backed would be more inviting right now than the dollar.
NO regime and its plutocrats can get political power and survive in a proletariat democracy without abundant AND increasing circuses, bread, and full range of cradle to grave freebies, eg bama phones, obomination care, etc, and therefore we will have ONLY fiat currency backed by ONLY promises and endlessly increasing debt.
The ONLY path that allows THE POSSIBILITY for the monetary system that you PM cult worshipers fantasize about is ARMED REVOLT THAT OVERTHROWS THE REGIME BY FORCE AND THE END OF PROLETARIAT DEMOCRACY, BECAUSE AS LONG AS THE PROLETARIAT CONTROL ELECTION OUTCOMES, THEN THE GOVERNMENT WILL BE DOMINATED BY POLITICIANS WHO BUY ELECTION-WINNING VOTES USING ENTITLEMENT PROGRAM BRIBES TO THE PROLETARIAT HORDES.
If all you PM cult worshipers decide to actually do something to overthrow the regime and impose rational policies, then I will be eager to consider your agenda and probably join, until then, the ONLY path for adults who need INCOME to support their families is to NOT waste precious limited money on inert shiny lead - which has been a HUGE loser.
...is to NOT waste precious limited money on inert shiny lead - which has been a HUGE loser.
Hmmm .... aparently you haven't been keeping up with ammo prices ....
Ammo is IMMENSELY less expensive than shiny lead, and I have PLENTY just for fun, to stay in practice and to be prepared just in case the opportunity for freedom and liberty comes before I die of old age.
Its not a cult.. Like yours is..Its about the freedom to participate, Its about real work and good. Your side wont last long.. Trust me. You'll fold like the ignorant Sissys you are!
I really enjoy reading all of your economic fairy tales.
Thank You !
The more things change, the more they stay the same. All fiat paper currency eventually reverts to its intrinsic value of zero.
The fact that fiat currency has no intrinsic value is NOT a problem!! It is when people use that same medium of exchange as a store of value that the problems are created.
You are probably thinking..this guy is wack, what else are you going to use for savings? Right? that's what you are thinking.
Gold can be used as a store of value...you already know this too. 'But gold doesn't pay a return AND it's price is unstable'.
So we agree if gold had a stable value it would be perfect right?...nope gotta 'keep up with inflation' too.
So if gold kept up with inflation it would be the perfect store of value...we finally agree.
That is what's coming.
Fiat currencies are here to stay, the world economy cannot work lugging gold all over the planet. and we know using 'gold backed ' currencies ala the gold standard is a garbage idea. This has failed too many times beofore.
A new system is already on the scene. Gold can be used by central banks as a reserve iwth zero attachment to the currency itself. The ECB is already doing this.
All that needs to happen is a failure of the paper gold market, a repriceing of gold greatly upward and of course the dollar needs to go. this is what is in the pipeline. Not one detail is conspiracy. The clock is ticking and soon the new system will force itself upon us.
Be ready...buy physical gold.