Sunday, July 29, 2012

US: collapse of the currency

Various Federal Reserve Notes, c.1995. Only th...
Various Federal Reserve Notes, c.1995. Only the designs of the $1 and $2 (the latter not pictured) are still in print. (Photo credit: Wikipedia)
With many talks on the US debt ceiling, a good cause for concern has arisen, currency collapse.  Watching the US dollar index is a good way to keep informed. I wont be going over hard details of how a major collapse happens. In short it falls down to printing money to get out of debt or spending your way out of debt. Money in the US is printed or created digitally, what this means is that "By printing the money to pay for the bridge, and putting that money into general circulation, you have simply devalued the money in everyone else pocket to exactly the same amount as the cost of the bridge."  you can read more here. The problem is: The currency is losing value on a daily basis.  This is why you hear or see so many gold commercials. The federal reserve is creating money from nothing, the money is not backed by anything. My concern is more with how to survive in a possible currency crash. In the event of a crash or even if the US dollar index hits 70 I would suggest you have somewhere safe to move. Avoiding the major city's can keep you alive or in better health for much longer. Stores that you go to for food purchase can easily be cleaned out of food in about 8 hours. Gas stations can run empty in less. Keep in mind that the money you hold in your pocket or the credit cards would be essentially worthless in an event like this. This is not meant to scare you or start a panic, just information most people are not aware of.

Awareness can help preparedness. 

 Anytime the US dollar value goes down, commodity values go up.  People love to blame "the rich" or "evil gas corporations" but, they are not the ones devaluing the currency thus causing the prices to inflate. Remember this, if the currency collapses, the rich, if invested solely in the dollar will now be broke. Again I refer to the mass amounts of gold sales pitches you hear. Blaming the rich for being rich is not a solution. Making sure your family survives is. As a US citizen you must remember,  when dealing with our currency we are talking about Non-interest bearing debt notes. "The U.S. Constitution effectively defines "money" as gold and silver - Article I, Section 10: "No State shall make anything but gold and silver coin a tender in payment of debts." The law agrees: "The terms 'lawful money' and "lawful money of the United States' shall be construed to mean gold or silver coin of the United States." (12 USC 152.) The Federal Reserve Note is not money; it is counterfeit currency. Hence receipts in Federal Reserve Notes, having no legal value, are not taxable." See this article and Section 10: Limits on the States. I recommend fully that you just read the entire US constitution. Look for part2 and how to asses resources you have and that are around you that you may be completely unaware of. Id like to thank Roger Tolces for information and an understanding of the US dollar. 

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