-- Published: Wednesday, 29 March 2017 | Print | Disqus
By Gary Christenson
Keep it simple!
Snowballs have a short life expectancy in Death Valley.
Fiat currencies, backed by credit and debt, survive longer than snowballs in Death Valley, but history shows all fiat currencies are inflated into worthlessness and eventually die.
“U.S. dollars have value only to the extent that they are strictly limited in supply.” Ben Bernanke on November 21, 2002. But we know the supply of dollars has grown rapidly since 1971, and especially after the 2008 crisis while Bernanke was Chairman of the Fed.
The U.S. government is officially $20 trillion in debt. Unfunded liabilities are far larger.
Official national debt has doubled every eight to nine years for decades. Debt in 2017 is $20 trillion and accelerating higher, and in 24 – 27 years it could be eight times higher – at $160 trillion. Can this fiat currency Ponzi scheme survive that long?
If the Fed “prints” another $140 trillion, will that destroy the purchasing power of the dollar?
Note to congress: “If you don’t raise the debt limit you will collapse the fiat currency bubble. But if you raise the limit and continue with ever-increasing debt you only delay a larger collapse.”
If something can’t continue, it will stop. What specifically might stop? Economic insanity, exponentially increasing debt creation, Federal Reserve credibility, the dollar as the Reserve Currency, purchasing power of the fiat dollar, euro, pound, yen …and others come to mind.
Federal Reserve Notes are debts of the central bank and have value because they are strictly limited in supply. But the supply of dollars is huge and rising rapidly. That begs the question, “What will preserve the value of the dollar?”
Gold has been valuable money for thousands of years. Which will retain their value longer?
Fiat dollars created in ever-increasing quantity?
Snowballs in Death Valley tell us most of what we need to know about debt based fiat currencies – and their chances for survival.
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