Death Valley Snowballs and Fiat Currencies - Gary Christenson

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From the Archives : Originally published March 29th, 2017
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Category : Gold and Silver

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?

Gold coins,

or

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.


GE Christenson is the owner and writer for the popular and contrarian investment site Deviant Investor and the author of the book, “Gold Value and Gold Prices 1971 - 2021.” He is a retired accountant and business manager with 30 years of experience studying markets, investing, and trading. He writes about investing, gold, silver, the economy, and central banking. His articles are published on Deviant Investor as well as other popular sites.

The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.


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