Crashing U.S. Dollar And The Future Price of Gold (Part 1)

Because I feel like we are near the end of a long bullish run, I wanted to post a couple of interesting takes on the current economy and market.

The other article posted Today, is on how the Fed may be creating an artificial environment, an ‘Asset Bubble‘ that may be on the verge of collapsing like a deck of cards.  So anyone that plays the stock market, please close attention to this article, and the one below.  Maybe it will help somebody salvage their hard-earned retirement.

[H/T Gold-Eagle]: Since the 1930s Great Depression the U.S. Dollar’s value has been in a Kamikaze-like Dive.

Another way of describing the disastrous history of the greenback is to simply say:

Measured against gold, the US Dollar purchasing power has drop by 99.9% during its lifetime
(1720-2013).

Dollar Crashing

Historical U.S. Debt Defaults

Most Americans believe that the US has never defaulted on the National Debt. Not True!  Indeed dire  circumstances in our history have forced our government several times to default the National Debt.  Here are the most notable historical occasions of US debt default.

  • The Continental Currency Default of 1779 – The US was at war for its Independence from Great Britain. Consequently, the Philadelphia Congress or the original 13 states issued bills of credit in the amount of 2 million Spanish milled dollars. US money at that time was called “Continentals.”  In November of 1779, Congress announced a devaluation of 38.5 to 1 on the Continentals, which amounted to an admission of default. From this was born the expression: “Not worth a Continental,”  meaning WORTHLESS.
  • Lincoln in Civil War defaulted on U.S. bonds in 1862 – To preserve the Union President Abraham Lincoln had to finance the raising of the Union army in order to defeat the Confederate Army of the south, who wanted to secede from the United States. Consequently, the US Congress created a new currency called the “greenback,” which was redeemable in gold.  Less than five months later, in January of 1862, the US Treasury defaulted on these notes by failing to redeem them on demand.
  • Roosevelt allowed U.S. bonds to default during the 1930s Great Depression – To finance the horrific bellicose activities of World War I (known historically as the Great War), Congress issued a series of debentures known as “Liberty Bonds” starting in 1917. The preliminary series were convertible into issues of later series at progressively more favorable terms until the debt was rolled into the fourth Liberty Bond, dated October 24, 1918, which was a $7 billion dollar, 20-year, 4.25 percent issue, payable in gold at a rate of $20.67 per troy ounce.  By the time President Franklin D. Roosevelt entered office in 1933, the interest payments alone were draining the treasury of gold; and because the treasury had only $4.2 billion in gold it was obvious there would be no way to pay the principal when it became due in 1938. With the country’s back against the wall due to the 1930s Great Depression, Roosevelt decided to default on the whole of the domestically-held debt by refusing to redeem in gold to Americans and devaluing the dollar by 40 percent against foreign exchange. By taking these steps the Treasury was able to make a partial payment and maintain foreign exchange with the critical trade partners of the United States.  Effectively, the value of gold leaped over-night from $20.67 to $35.00 per ounce in early 1934.

( Source:   http://mises.org/daily/5463/ )

Fast-Forward to 2013

And today with the floundering Obamacare fiasco, exacerbated by the National Debt soaring over $17 TRILLION and targeting $25 TRILLION in the next few years, AGAIN U.S. T-Bonds are of questionable value in the minds of prudent investors. The following chart clearly demonstrates the U.S. National debt is totally out of control and rising “like a bat outta hell…” pardon the vernacular.

U.S. Debt

This fellow patriots, can last only so long.  Now, let’s take a look at how the Fed has been inflating the market, or creating an ‘Asset Bubble.’

Bible Prophecy: The Threat of Islam is Predicted in Bible, Walid Shoebat is a Scholar of Both Islamic and Christianity Tells All

The Christian Bible and Christian Bible Prophecy predict that in the end times the Antichrist, a beast, an dreaded evil man, more evil than any who ever walked the earth in history, will be thrust upon the world scene, and that billions of people on planet earth will die between natural cataclysms and those killed by the Antichrist–including gruesome beheadings for those who refuse to bow to his religious-government system.

If you are short on time, please listen from 1:10 until completion.

Millions of American evangelicals believe that the Antichrist will rise from Europe from a ‘born again’ Roman Empire, as depicted in the immensely popular Left Behind book series.

But what most people don’t know is that the Muslim Bible and Islamic Prophecy also predicts the coming of a person fitting nearly that identical description: The Madhi, the Muslim Messiah! How can this be?

Walid Shoebat is a scholar of both Islamic and Christian religions and he does not believe the Antichrist will rise from Europe. Rather, he teaches in this video that the Antichrist will arise from Turkey in resurgence of the Ottoman Empire.

View the documentary, “Bible Prophecy and the Coming Muslim anti-Christ” by Walid Shoebat and decide for yourself. Your life may never be the same again.

Sean Penn: Ted Cruz and Other Tea Partiers in Congress Need To Be Committed By Executive Order

Actor and activist Sean Penn said Monday that Sen. Ted Cruz (R-Tx.) and other Tea Partiers in Congress need to be committed by executive order.

Such was said to a laughing Piers Morgan on the CNN program bearing his name (video follows with transcript and commentary):

http://www.mrctv.org/embed/123740

[H/T Newsbusters]: SEAN PENN: It is funny, because what you were talking about before we went to the break, you know, I, I was in Port-au-Prince when the shutdown happened. And, and I said to people — they need, I had stuff that it was demanding on me in Port-au-Prince but I, I had to come home. I said, “Listen I, I have to leave Haiti now because I have to travel to the third world county that I come from.”

PIERS MORGAN, HOST: [Laughs]

You have been, you know, this I think, you know, on the forefront of this gun thing. All of these things, and this is also where you get people who think these things.

I think for let’s, let’s go to the Tea Party influence on Congress on this thing. I think they have, there’s a mental health problem in Congress. This would be solved by committing them by executive order, I think, because these our American brothers and sisters. We shouldn’t be criticizing them, attacking them. We should take their — this is a cry for help.

PIERS MORGAN, HOST: You literally commit what …

PENN: I think …

MORGAN: … people like Ted Cruz?

PENN: He’s, he’s my American brother. I want, we think, we should take care of him. He’s in trouble.

MORGAN: [Laughs] Well, actually have him committed.

PENN: Yeah, I thinks it’s a good idea.

MORGAN: [Laughs]

PENN: [Laughs] But then you look at, you know, the, look, there’s a lot of reason to take a shot at me and I’m giving people a lot reason to over the years. But the thing you’re talking about and, and the way people’s perception of political positions are, is a direct reaction to their lack of, of their education which is a huge problem that we’re dealing with in the country. And between an uneducated people and the solipsism of the people like Ted Cruz and their party, it’s a poisonous thing.

Obamacare: Feds knew in 2010 that Obamacare Violated President’s ‘Keep Your Plan’ Promise But Went Ahead Anyway

[H/T The Daily Caller]: Federal regulators have known for years that the vast majority of individual health-insurance policies held by 14 million Americans would be killed off quickly by Obamacare regulations.

The regulators’ predictions sharply contradicted President Barack Obama’s repeated claims that no-one would lose their health insurance policies once Obamacare was implemented.

Obamacare promises not keptObama’s press secretary, Jay Carney, grudgingly acknowledged Oct. 28 that some policies are being ended. But he downplayed the impact, and he didn’t admit that the president’s regulations flatly contradict Obama’s repeated promises.

“We will keep this promise to the American people… if you like your health-care plan, you will be able to keep your health-care plan, period,” Obama said June 23, 2009. Aided by that and other similar promises, Democrats pushed the Obamacare takeover through Congress in March, 2010, without any GOP votes.

“It’s true that there are existing health care plans on the individual market that don’t meet those minimum standards and therefore do not qualify for the Affordable Care Act,” Carney acknowledged when questioned Oct. 28 by Fox News’ Ed Henry in Monday’s daily press briefing.

Carney did not apologize for Obama’s broken promises, but instead tried to focus on popular aspects of Obamacare, or on secret surveillance programs or gay rights.

“Americans who have insurance on the existing individual market will now have numerous options available to them, and 6 out of 10 will pay less than $100 per month in premiums for better insurance,” he said.

“Eighty-plus percent of the American people already get insurance through their employer, through Medicare, through Medicaid [and] don’t have to worry about or do or change anything,” he insisted.

When he was asked what percentage of Americans will lose their individual plans, and so be forced to buy more expensive defined-benefit plans that comply with Obamacare, Carney simply punted. “For that kind of question, I encourage you to participate in the regular briefings held at CMS,” he said. CMS is the Center for Medicaid & Medicare Studies at the Department of Health and Human Services.

However, officials revealed the answer in a draft 2010 regulation.

More than 70 percent of the plans used by individuals would be cancelled in three years, predicted the draft regulation, published in the June 17, 2010 edition of The Federal Register, a daily government publication.

The regulation suggested that only about 30 percent of plans were held for more than 3 years. That’s important because the regulations allow plans held prior to Obamacare’s launch to be “grandfathered” into the Obamacare system.

“One study found that 17 percent of individuals maintained their policies for more than two years, while another found that nearly 30 percent maintained policies for more than three years,” said the regulation, which was exposed Oct. 28 by NBC News.

But the 2010 regulation also noted that percentage of surviving plans would fall because Obamacare limits companies’ routine practice of modestly changing customers’ pre-Obamacare plans each year. Once the routine changes reach a low threshold set by Obamacare regulators, the grandfathered plan is cancelled, forcing the buyer to pick  a new Obamacare-compliant plan.

FEMA Civil Unrest Preparation: 100-Plus UN-Marked MRAPS Deploy To Camp Grayling, Michigan

[H/T Western Journalism]: Using secondary roads and traveling only at night, truckers from more than a dozen four-truck convoys have made their way from the west coast to Camp Grayling in Michigan’s Lower Peninsula, where they unloaded their cargo: more than 100 Mine Resistant Ambush Protected vehicles – MRAPs.

This information was first brought to my attention by a high-ranking officer in Michigan’s Law Enforcement community, so its provenance is impeccable. This officer introduced me to a truck driver, a mutual friend, with direct knowledge of these convoys. According to the truck driver interviewed in this episode of The Truth Is Viral, the MRAPs delivered to Camp Grayling – long suspected of being a major FEMA camp – were clearly marked with United Nations insignia.