Many people understand that currencies are just debt notes and that they will have zero value at the precise point that the debt collapses. So why are they not falling in value?
Why is demand for currencies so strong?
The answer is that we need them – desperately. It has nothing to do with ‘an idea backed by confidence’ as was suggested to me (again) last week. Each month we must pay our rent or mortgage, service credit cards, buy power, fuel and food and all the other necessities of life. To achieve that, we exchange our skills and labour for dollars, because dollars are what we use to honour our commitments. The tougher times become, the harder we must work to meet our personal demand for dollars. So, not only is the demand for dollars growing, but what they will purchase is increasing.
Governments are in the same bind. As they continuously increase the nation’s debt in order to buy votes, so they must scrape for their own dollar debt notes to service it.
Is that not ironic? At the very time when more and more people are becoming aware of the fatal flaw of currencies, demand for them is becoming stronger.
The closer we come to the collapse of the debt the more value dollars have. Everyone is in a manic frenzy to stave off the inevitable.
I had communication with a retired Greek engineer who had managed to accumulate some Gold and silver, but who had to use it to buy dollars when his pension vanished.
While dollars maintain their value, we must have them, and they retain their value for that reason. It’s an interesting loop. There is no other way to service commitments and survive.
You must have Gold or silver savings, but you must also have a flow of dollars. If you are fortunate enough to have a job, or a cash-flow positive business, do everything that you can to keep it for as long as you are able.
Real Gold Bonds will allow a transition from the fiat imbroglio to an honest money system. Nothing else will. Without them, the US dollar-centric system of fiat will continue until the day the debt collapses and it all falls off a cliff, along with civilization and civilized behaviour.