Monday, November 5, 2012

Fiat World Everywhere! - Coinhuskers

(When will the world figure it out?)

“Fiat money is an intrinsically useless product, used as a means of payment.”
Source -

Every nation today is using fiat money backed by debt. Fiat = money by decree some entity has to enforce it via regulation or law. Fiat money can come in different forms. Debt based fiat money is the current form today enforced by central banks around the world. The fiat money model today originated with the Bank of England in 1694. Fiat money is borrowed into existence and then interest is owed back to central banks.

The fiat money model simplified... We find some trees - make some paper - find a printing press - put a nice design on some paper - add some ink - add some #'s - enforce some laws to make fiat money legal.

Fiat money = debt. Debt = borrowing. Borrowing = interest (funny money for banks). No debt/borrowing = no money!

Further explanation of fiat money in action today

Centrals banks are private monopoly perpetual debt machines that lend fiat money to whomever living souls will borrow their debt and pay interest back to them. Continuous debt is the tool to keep economy afloat. Banks must attract as many people as possible to go into debt to borrow fiat money so they can collect interest. This explains why you'll get a million credit cards offers in the mail. Central banks enhance their wealth by simulating commercial banks to make loans (risky) to collect as much interest as possible. All banks are essentially bankrupt from the first loan they make because they don't have the 100% reserves to cover the promises they loan out. Fiat money is loaned to banks. Banks only lend promises back by a signed document, without a signed document and loaned deposits to banks there is nothing to lend. 

Central banks lower interest rates to simulate as much borrowing to keep the economy afloat. Citizens assume their getting a great deal to buy goods/services when really it is encouraging citizens to borrow and pay interest to banks to keep the fiat money game going. A delay between new loans being created and repayment/interest being collected allows for systematic failure of the system to be postponed. Reason I say postponed is because eventually exponential growth catches up. 2008 was a brief preview when two of the top 5 banks went under: Lehman Brothers & Bear Sterns. Risky loans caught up to these two banks the repayment of interest on loans could not be made.

Propaganda babble informs us to save the system we must bailout the banks. Taxpayer fiat money foots the bill. Central banks must continue to issue/buy their own debt to keep fiat money alive. If the public opts for other forms of payment, fiat money would go to its intrinsic value of zero. 

Fiat money throughout history becomes worth-less and worth-less until it is worthless! All have ended up being an ancient artifact. Fiat money should serve as a learning lesson... a lesson not taught in the conventional wisdom arena's such as old school financiers, public schools & universities. Fiat money value derives solely on trust & confidence which has always eventually faded away. 

For examples of different forms of fiat money in the U.S read article below: Rock-Paper-Silver! 

Wednesday, September 5, 2012

How to understand the game of our monetary system?

Knowing the rules to anything in life is important if you want to do well. The goal of our monetary system, is to issue debt and increase more debt. Modern day money is debt. Without continuous debt based issued paper notes by central banks, our monetary system would fall apart. Every paper note has to be borrowed into existence & then every paper note is owed back to whichever nation's central bank plus interest. Paying down debt is not an objective for banks. To pay off debt is to destroy a nation's money supply. 

The game of our monetary system is like the game of monopoly. Paper money is theoretically unlimited; if the bank runs out of money they can issue more unlimited paper money via printing presses. You see, our whole monetary system is just IOU's being passed around to pay/buy - goods/services. Banks to governments, governments to citizens. Citizens are sold on a bill of confidence - literally! Our entire monetary system is a confidence game. How does anyone have confidence in debt as money? 

Every time a private citizen borrows money or puts something on a credit card "POOF"... modern day counterfeit $ has been created. Citizens get to borrow currency that never existed and then that currency that never existed - is now created & owed back to central banks plus interest. The game of monopoly is named after the economic concept of monopoly, the domination of a market by a single entity. The reason America's national debt exists is because "The Federal Reserve" a private corporation controls/issues our currency. Ironic thing about our monetary system is that if everyone paid off their debts in our society there would be no money. Meanwhile, banks profit off the interest of citizens paying down debt. The real life game of our monopoly monetary system is different in one aspect there is an unlimited get out of jail free card for central banks! 

*Dollars or Federal Reserve Notes are a debt, from a debt used to pay a debt. Ask yourself, how can someone pay a debt with a debt?

If you understand the game our of monetary system you know you can't pay a debt with a debt. It would be in your best interest to become your own banker rather than pay interest to banks. Why settle for a life filled with empty paper promises? Get lasting wealth today - Gold & Silver will not inflate away!

Example for fun via USDebtClock.ORG
National Debt = 16 trillion. Unfunded Liabilities120 trillion.
GDP = 15.3 trillion.
U.S could tax everyone 100% for 8 years leaving people no debt paper $ for any goods/services. 

Sunday, February 26, 2012

Jim Rogers Comments on Silver & Commodities!

- Silver is one of the few refuges left.

- Right now there are over 7,000 mutual funds in which the public can invest... There are fewer than 10 commodity funds. By the end of the commodity bull market there will be many more commodity funds and products - Sept 20th, 2011. 

- Silver has a great future. The bull market in silver has a long ways to go. 

- The price of silver will never go to zero! 

- There are no sound currencies anymore. Do not sell your silver. 

- I would rather own silver than gold. Buy yourself some silver chopsticks or some silver cutlery and you will be very rich in five or 10 years. Comment made October 12, 2010. 

- Bull run in commodities. The shortest bull market for commodities lasted 15 years, the longest 23 years, so if history is any guide, they've got a long way to go. This is not a bubble.

- I am long Silver and if it goes down, I hope I am smart enough to buy more. I don't want to sell my silver. I want to own it 10 years from now.  

- Silver & The 1987 Stock Market Crash. In 1987 stocks went down 30 to 40 percent, smart people went in an bought more. If it goes down I hope I'm smart enough to buy more silver. 

- No bubble in Silver, No bubble in commodities yet. I hardly see how silver could be a bubble when it's below it's all-time high. That's not much of a bubble. A bubble is when things are screaming up every day and they go to new highs, two to three times their old highs. We'll have a bubble, we'll have a bubble in commodities, we're not there yet. 

- Stock prices can go to zero. Commodities cannot. Unlike shares in a company, commodities are real things that are always likely to be worth something to somebody.

- In the commodity world, the cure for high prices are high prices. You let prices go high and stay high, that is the cure, demand goes down, supply comes up.

- If there is war, commodities go up in war. If there is war America is going to print money. If there is not war, they are going to print money and so whenever there has been money printing, the result has been that you should have your money in real assets. 

- It has been a pretty clear thing throughout history. Real assets are the only way to protect yourself. 

- In my view whatever happens, if the world economy gets better, commodities are going to be good because of the shortages developing. If there is war, commodities go up in war. If there is peace and there is not going to be an economic recovery for governments, they are going to print even more money, it is the western government. So depending on how things work out tonight, I would probably use this opportunity to jump in and buy more commodities.  

- Wall Street's Outlook For the Next 2 or 3 Decades
"The city of London and Wall Street are not going to be great places to be in the next two or three. It's going to be the people who produce real goods."

- There will be more people buying silver (and gold), eventually everyone will own silver (and gold) and then we will have to sell our gold. But that is a long way from now.  

- Silver will definitely reach new highs. US dollar is in serious trouble, and will be debased a great deal in the future, and eventually will be problematical itself. So gold and silver will be measured by the US dollar but I hope there will still be some sound currencies no matter what happens. 

- The dynamics of a bull market. I've been trying to explain to people for a long time what's going on, but for some reason nobody listens. Normally at this stage of the commodity bull market you would expect new capacity to be coming on stream. The problem of course is that in 2008 and 2009 everybody got hit. So, many of the people who were thinking about adding capacity have pulled back, cancelled, delayed, rescheduled, etc Fortunately or unfortunately, the supply side of the equation seems to be getting worse not better. 

- You have to protect yourself with real assets such as silver. Silver is something that will hold its value in an inflationary time. I own silver coins in my hand, in my house, in my box. 

- Commodities are the place to be. If the world economy gets better, commodities are going to make a fortune. If the world economy does not get better, commodities are the place to be because they are going to print more money, and that's how you protect yourself. 

- It's not time to own stocks and bonds. Throughout history, go back and look, you know we had huge inflation in the 70s, stocks were not in a good place to be. This is the time when you should own real assets, not stocks and bonds. Paper money is not going to do it for you. 

- 75% of High-End Money Managers have never owned gold. When speaking to a room full of high-end money managers, they were asked how many of them owned gold. 75% of the people had never owned gold, or silver. So you can see most people still do not own gold. For most people in the world gold is still an unknown entity. Comments from 2010

- I am not selling my gold. I bought some gold this week. If gold goes down a lot, I would buy. I hope I am smart enough to buy a lot more gold. Gold is going to go much higher over the course of this decade. Do not sell your gold, not yet. - Comments from February 2012

- Gold is not a bubble. I expect there to be hysteria in the precious metals markets in 5 to 10 years. Right now, very few people own gold, and I can hardly call something a bubble when very people own it. Comments from 2010

- I don't own any US equities. I like to invest with the creditors not the largest debtor nation in the history of the world. Commodities are mainly my play of how I am doing that. 

- Printing money leads to huge inflation down the road. This helps commodities - real assets. 

- Probably none of us are going to own any paper money at all ultimately, but that's later in this decade, because paper money is becoming very suspect everywhere in the world. 

Tuesday, February 21, 2012

Jim Rogers Quotes

Everybody’s having a wonderful time running the printing presses. The way to protect yourself at a time like that, historically anyway, has been to own real assets. Those are my longs, and currencies. - in Bloomberg

Probably none of us are going to own any paper money at all ultimately, but that’s later in this decade, because paper money is becoming very suspect everywhere in the world. - in Bloomberg

"I don’t own any U.S. equities." - in a recent Bloomberg TV interview

My way of playing this is to own real assets like commodities. You now have the Bank of England, the Bank of Japan, the Federal Reserve printing money. The way to protect yourself at a time like this is to own assets. - in CNBC

If you listen to governments, then you are not going to make a lot of money. Governments lie, distort and make mistakes. - in CNBC

Europe as a whole is the largest economy in the world. If Europe has problems, we in the US are going to feel those problems. - in CNBC

Things look better, but whether it is actually real or not is the question. I am worried about the U.S., especially in 2013 and 2014. In the U.S., they are going to continue printing money and sending out good news to win votes this year. - in Money News

Stephen Leeb - This Will Spark the Next Leg Higher in Gold 
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Central Bank Gold-Buying Increases by 500% 
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Gold Price Manipulation Explained & Why Silver Will Soon Go Ballistic - Bill Murphy Of

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SBSS 14. Protect Your Wealth

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Eric Sprott - Central Banks Don't Have Enough Gold

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James Rickards: Paper, Gold or Chaos? 
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Jim Rogers: Don’t Pay Governments Much Attention 
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Jim Sinclair: Tell A Lie Big Enough, Loud Enough And Long Enough And The Sheeple Will Believe
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Rule - Greek Bailout & What it Means for Gold 
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Chris Martenson Interviews Eric Sprott On The Amazing Potential For Gold & Silver To Rise In Price. - 1-3

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FOFOA: Yo Warren B, you are so OG! 
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John Williams: $8,890 Gold, $517 Silver & Hyperinflation Update
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'Ron Paul Right, US Deep Into Fascism'
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David Morgan - Myths And Misinformation In The Silver Market

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Eric Sprott: Silver Will Become a Currency Again 
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CB’s Global Assault to Destroy All Paper Currencies - Michael Pento 
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Casey Research: Gold Speaks Up 
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Saturday, January 28, 2012