-- Posted Monday, 21 February 2011 | | Source: GoldSeek.com
By Michael "Woody" O'Brien ChFC
A friend asked me this week, in a roundabout way, if there’s any mathematical limit to how high silver and gold could go under a hyperinflation outcome.
Math and economic geek that I am, Zimbabwe and Weimar, Germany immediately came to mind. Hyperinflation so ravaged their bankster paper money, in the end, it only had value as heating fuel and, eventually, collector value on eBay.
The U.S. dollar is known to be printed on a special version of cotton fabric, not paper, so it has residual value as toilet paper.
Not willing to give up my fondness for made-in-America, organic, chemical-free toilet paper, I confess I won't be trying any bankster Federal Reserve $1 bills for bathroom paperwork.
However, let's just assume for the sake of this math problem that a $1 bill has the bathroom utility value of 1 square of Cottonelle Ultra 2 Ply that sells at that China import store (whose Arkansas roots we all know) for $0.0037878 cents per toilet paper square.
For $1 U.S. dollar to be of equal value as toilet paper it would need to fall about an additional 99.95% from its value today.
However, such dollar devaluation to its toilet paper value would also correlate the price of silver and gold moving about 2,112 fold from today’s spot price to $68,641 per ounce silver and $2,931,305 per ounce for Gold.
So at dollar = toilet paper value, even my pal Max Keiser’s $500 an ounce silver target sounds like bullion genuine pessimism.
Yes, it could take a while until Federal Reserve QE# 29 gets us there. However, as long as the cotton is available and Bernanke has helicopter access, or his e-money software password, he will keep creating and raining money on the “gangs of New York” and their political enablers in Washington.
Should the idea of your using our founding hero George Washington’s $1 image as toilet paper offend you, I suggest 2 remedies.
A: Keep telling yourself Uncle Ben and his fellow central banksters are not as evil as Satan himself and will stop debasing the dollar soon.
B: Own as much gold, silver, and as much stored toilet paper as you can possibly stand, assuming the Federal Reserve lusts everyday to destroy that 1.44% of the 1913 gold dollar's value its past evil counterfeiting has failed to kill.
So there you have it kids, there is indeed a toilet paper value for U.S. dollar below which even an evil putz like Ben Bernanke can’t devalue it.
Of course, if it ever happens, I predict Red apologists (READ: Steve Liesman) would IMMEDIATELY spin it on CNBC as follows: The use of dollars as toilet paper is so collapsing the money supply, it REQUIRES that world bank SDRs be put into American circulation to save the American economy from collapse.
I base this prediction on one thing: bankster evil never sleeps.
If any goldseek readers would like a free copy of "A 100 things that disappear in an economic collapse", just email me below.
Hint: Toilet paper is #30 on the list.
Michael "Woody" O'Brien ChFC
woody@AbolishFiatSlavery.com
http://www.AbolishFiatSlavery.com
-- Posted Monday, 21 February 2011 | Digg This Article
| Source: GoldSeek.com
