THE STRONG DOLLAR
Certain myths seem to persist forever. Certain phrases are so common, that no one ever questions them, or realizes they are frauds. Common today, is the trite, "strong dollar." Excuse me, but would you repeat that? "THE DOLLAR IS STRONG!" The hell you say. That phrase is repeated over and over again by stock brokers, "economists" (probably one of the most fraudulent occupations ever), bankers, and other assorted bunko artists, faro dealers and ladies of the night. I ceaselessly debate those who call me and exclaim that the "dollar is holding up, and is strong." Well my friend, it isn't. It isn't "strong," and what you consider "strong," is an illusion. Houdini could have done no better than the "economists," who say we have a "strong dollar."
"Strong" by what measurement? I have seen kindergartners "strong," compared to first graders. I have seen a "strong" ant, carry a twig. I have seen a "strong" rubber band, and a "strong" piece of cardboard, compared to a weak piece of cardboard. It is all a matter of comparison and degree. The "strong" dollar may be so, compared to the Japanese yen, which is less than a penny, or other paper frauds, but compared to the dollar of a half century ago, it is a pitiful joke. Comparing the dollar to other currencies, none of which are worth a hoot in hell, is an abysmal comparison. When currencies all go down simultaneously, as they are, and have been, it is a new mark in history. For the first time in recorded history, all governments are printing like there is no tomorrow, and all currencies are concurrently self-devaluing. It's almost like colorful leaves fluttering down from sleepy trees in the autumn…in ultra slow-motion. Which leaf will reach the ground first? Which boat will go to the bottom first? They all have un-fixable gashes in their hulls.
All governments around the entire world, are merrily, foolishly, irresponsibly, printing, printing, and printing some more. Whole forests are going to waste, printing currencies in every nation in the world. It's almost like Malaya and Singapore after WW II, and I thank Ken T. for this information. To quote Mr. T., "After WW II in Malaya and Singapore, heaps of Japanese "banana" notes were thrown into trash cans all over the country. If you examine one of these museum pieces today, you will note that the "banana" money was even backed by a promise by the Japanese Government, "to pay the bearer on demand." Pay the bearer what?
Look at today's "strong" dollar, to see almost an exact repetition, 2001 style. The bills of America read on top, "Federal Reserve Note." A "note" for what? This is grand now, isn't it? The Federal Reserve isn't even a part of the US government! It is privately owned, mostly by Europeans. The US bills say they are "legal tender for all debts, public and private." Comforting, huh? There's that old "legal tender" phrase again, which simply means the bills aren't worth anything, except the law says they are "legal tender." "Legal tender," simply means we are forced to use them, but it denotes no value. Nowhere, on any US bill, is any redemption figure given, or indication that they have even birdseed in back of them. Just paper, imprimatured with ink, and fading fast. Fast? Yes, because inflation, by definition is, "an increase in the supply of currency," and boy is it increasing!
Hundreds of billions in "liquidity" have been injected since Sept 11th, and it has only begun. Hundreds of billions to catch Ben Laden, hundreds of billions for Anthrax horrors, and hundreds of billions to send troops, missiles, bombs, ships, and planes. Our troops in Saudi Arabia are there for what…other than inflaming Muslims? Do we think that the Saudis wouldn't sell us oil if we left? They want our dollars so they can continue in their effortless, lush, life style. Now that we're all concentrated in Afghanistan, it wouldn't surprise me if China attacked Taiwan, and then the presses will roll even faster. The first time this happened here in America, was during the Revolutionary War, when fledgling America printed currency endlessly, and it became worthless. The second and third times, were during the War Between the States, incorrectly called the "Civil War." The North printed, and the South printed, and both came to naught. Those who saved in those currencies, lost their entire fortunes. Those that saved in non-currency denominated things, such as acres of land, tons of virtually anything, or in any denominations in other than greenbacks or confederate bills, were OK. The same holds true today. Save in dollars, and as you watch prices go up, your dollars buy less, because of inflation. "The more of anything there is, the less they will be worth." (Stott's law) This includes dollars. Prices aren't going anywhere, but the dollar is going down…along with every single currency in every single land on earth. For the first time in history, all governments are running their presses, and selling their gold to try to slow the printing. In the end, all their gold will be gone, and their currencies will be the market determined value of what they already are…totally worthless.
Will there be a new, world-wide currency, when all the present currencies have become bathroom tissue? The one world gang would love that. It may happen in your lifetime, if the trend can't be stopped. If the gang succeeds, it won't be gold or silver. It couldn't be, because gold and silver thwart every politician's dream of control and effortless manipulation. Gold and silver can't be printed, and owe no debts. They have value with no legal tender laws. When the currencies go to nothing, the wealth will be held by owners of land, homes, tangibles of all sorts, and of course gold and silver. The governments will have piles of worthless paper. They will issue new pieces of paper imprimatured with ink, and make the new pieces "legal tender," but the confidence will be gone. By that time, we will be bartering with one ounce silver rounds, silver dimes, and quarters, gold bullion coins, gasoline, dozens of eggs, chickens, labor, materials, cows, groceries, tires, land, and lumber. No one will care what date is on coins, because it will be their content, not the "numismatic" value. Notice that of all the above bartering instruments, none are as compact and readily recognizable and desirable as are gold and silver.
But if "numismatics" turn you on, a client of mine kindly forwarded to me a copy of a US law stating that US gold and silver coins now being made, are by law, "numismatic." So there!
A glimpse of a one world, one currency, United Nations controlled world, is a nightmare indeed, and it's high time to boot out the UN, and its worthless bureaucrats, groupies, and various hangers-on; withdraw our membership, and once again become a United States of America, not the world. The turbaned sheiks, cannibals, robed outlaws, cheats, and do-gooders, from around the world, need a one way ticket back to their sand patches and fiefdoms. After they're vamoosed, to further my dream, which will never happen, we can throw Greenspan and the non-Federal Reserve out also, and begin making dimes, quarters, and halves with 90% silver again. Ever wonder what the fed has in "reserve?" Ever wonder what law gives the non-Federal Reserve the right to control interest? Ever wonder what law gives the non-Federal Reserve the right to limitlessly increase the currency supply, thereby debasing it? Did you ever wonder why everyone in D.C. seems to be an airhead?
As usual, I finish one of these diatribes with the words, "protect yourself." But as I finish this, Governor Pataki's office now has anthrax, and Congress is shut down because of it. When people take a "flight to safety," to protect themselves, I cannot see how another piece of paper with ink on it, (bonds, treasuries, etc.) as issued by a government, can possibly be considered "safety." Nor do I see how one can feel really "safe" in a large city, especially an eastern one. Everyone can't leave the big cities, but those that can, I firmly believe, should, or at least have a cabin in the country in which to indeed flee to physical safety. These bastards aren't finished with us yet, and the logical attack points will be where the most people are located, and it isn't small town America. Protect yourself with every possible means at your disposal, both economic and physical.
October 19, 2001
Don Stott has been a precious metals broker since 1977, has written five books, hundreds of columns, and his web site is www.coloradogold.com
Also by Don Stott