Road to Roota VIII

I believe the failure of all fiat currencies is imminent.

The pending nationalization of Fannie and Freddie should be the final nail in the coffin for the banking system as well as the entire fiat money system. The US can't afford to do it, but "the system" can't afford not to do it. This will be "check mate" for the US Dollar.

I know that most everyone is looking at this as a bad thing, but I see it as a coup from the standpoint of the US Citizen. Just look at what we are getting for the worthless fiat paper! 40% of all the home mortgages in the US will be transferred to the Citizen Owned US Government for SOON TO BE WORTHLESS PAPER!

Not too long ago it was the BANKS that owned all the houses...too bad for them.

With the world's currency printing presses (actually computer generated entries!) working overtime it's all about hard assets now. There is no larger HARD ASSET market than the US housing market and the nationalization of Fannie and Freddie would be the best move the US could make for its citizens.

Once this nationalization takes place, the genie is out of the bottle and ALL hard assets around the world will be nationalized. As I surmised in my Road to Roota II article you can kiss “Globalization” good-bye. I find it more than interesting that Alan Greenspan continues to drop hints in this direction in the articles he publishes....like the very last line of his latest Financial Times article:

"If that becomes widespread, globalization could reverse – at awesome cost."

I continue to believe that Greenspan was behind this collapse of the evil banking system and is a true national hero: http://news.goldseek.com/GoldSeek/1214492700.php

Obviously, the winner in the fiat money collapse will be the largest debtor nation and that nation which is closest to financial collapse anyway....

THE GOOD 'OL USA!

Yes, the world will be a very scary place as we make this transition but it's much better than the alternative...the total collapse of the United States of America.

Now although we gold bugs lean towards a gold/silver backed currency, a new monetary system could also be implemented following Ben Franklin's idea of using land (homes) as the backing for the new national monetary system.

Read this Federal Reserve Philadelphia release:

www.philadelphiafed.org/education/intersections/2007/spring/Spring2007.pdf

An interesting note in this article is that Franklin was not opposed to a gold/silver based private banking system running in parallel to the government dictated monetary system.

I hope everyone reading this fully understands the significance of the end of fiat money and has taken the precautions of buying physical gold/silver.

Remember, paper gold/silver, stocks, bonds, etc. are no substitute for physical gold and silver. A banking collapse will surely wipe the slate clean when it comes to the lopsided wealth allocation created by the fiat money.

Insolvent brokerage houses, phantom stock certificates and the COMEX/NYMEX default will erase perceived wealth in a blink of an eye.

I would not be surprised to find the world very different in the coming days, weeks and months.

I wish you all the best in these trying times.

Bix


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