Germany Should Quit the Euro and Use Gold As Money

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David Redick

Germany is facing an historic decision of whether to stick with the Euro and more bailouts of other Eurozone nations, or withdraw and establish its own strong currency. Their Constitutional Court will decide on September 6 whether it is legal for the European Central Bank (ECB) to buy sovereign bonds to fund further bailouts of Greece, Spain, and others.

On August 24, Bloomberg.com wrote; "European Central Bank President Mario Draghi may wait until Germany’s Constitutional Court rules on the legality of Europe’s permanent bailout fund (the ‘European Stability Mechanism - ESM) before unveiling full details of his plan to buy government bonds."

Time is short for German leaders to decide! The USA and other nations like to ‘kick the can down the road’ and continue hopeless ‘propping’ of their failing fiat currencies, but Germany must decide now. To stimulate their thinking about using gold as money, I sent the letter below to Chancellor Angela Merkel, with copies to her Finance Minister W. Schaeuble, and Frank Schaeffler, a member of parliament and the finance leader of the ‘Free Democratic Party’. He has been a strong opponent of ‘using’ Germany to bailout other nations. I also sent them a copy of my book Monetary Revolution USA (it includes a plan to convert the US monetary system to gold as money), and my November 30, 2011 essay "A Three Step Plan to Save the Euro with Gold."

The situation has gotten so much worse since my Nov-2011 essay, I now recommend that Germany quit the Euro and take the lead by using gold as money (with weight of gold as the ‘unit of account’ for pricing and payments).

How Many People Will Go Hungry When The U.S. Dollar Ponzi Scheme Collapses?

Dees Illustration

Market Bust

The U.S. Dollar which is not really even a dollar but rather a "Federal Reserve Note" is nothing more than a mirage in the desert.  Federal Reserve Notes are just that, Notes.  What is a Note? It is a formal piece of paper that says one person owes another money, in this case the Federal Reserve.

But what are they going to pay you back with? More Notes of course. And what makes these notes valuable? Nothing more than the belief of the people who use them.

And how are these notes created? Quite simply they are borrowed into existence. This means that Money is just debt. So if all of the debt were to be repaid tomorrow, there would be no more "official Money". FIAT PONZI CURRENCY NOT BACKED BY ANYTHING EXCEPT HOPE.

Save the USA by Restoring Government to Its Proper Role

Dees Illustration

David Redick
Activist Post

The USA is at a tipping point where spending reductions and legal reforms must be made or we will have a more severe economic crash than the one we have experienced since 2008. The US Dollar has lost over 95% of its purchasing power since 1913, and faces further losses if we don’t make changes soon. The GOP ‘Path to Prosperity’ sounds good, but only asks for minor spending cuts while saying nothing about our failing monetary system and costly military bases and wars. The world views us as a failing empire, and other major nations are making preparations to replace our dominance in financial and political matters. This article shows how we can reduce our arrogant excesses and avoid an economic and political crash. 

How In The World Did We Get To The Point Where The Federal Reserve Is Printing Money Out Of Thin Air Whenever It Wants?

The Economic Collapse

Ben Bernanke and the rest of the folks over at the Federal Reserve did not just wake up one day and decide that they wanted to start printing hundreds of billions of dollars out of thin air.  The truth is that the economic forces that have brought us to this point have taken decades to develop.  In the post-World War 2 era, when the U.S. economy has fallen into a recession, either the Federal Reserve would lower interest rates or the U.S. government would indulge in even more deficit spending to stimulate the economy.  But now, as you will see below, both of those alternatives have been exhausted.  In addition, we are now rapidly reaching the point where there are simply not enough lenders out there to feed the U.S. government's voracious appetite for debt.  So now the Federal Reserve is openly printing hundreds of billions of dollars that will enable them to finance U.S. government borrowing, and (they hope) stimulate the U.S. economy at the same time.  Unfortunately, the rest of the world is not amused.  Nations such as China, Japan and many of the oil-exporting nations of the Middle East have accumulated a lot of U.S. dollars and a lot of U.S. Treasuries and they are not pleased that those investments are now being significantly devalued.

So how did we get to this point?  Why is the Federal Reserve printing money out of thin air in a desperate attempt to stimulate the economy?

Well, the Federal Reserve has more or less exhausted all of the other tools that it has traditionally used to help the economy during an economic downturn.  As you can see from the chart below, the Federal Reserve has lowered interest rates during past recessions.  The goal of lowering interest rates is to make it less expensive to borrow money and thus spark more economic activity.  Well, as you can see, the Federal Reserve has no place else to go with interest rates.  Over the past 30 years, rates have consistently been pushed down, down, down and now they are kissing the floor....

Another way that the U.S. economy has been "stimulated" over the past 30 years is through increased government spending.  The theory is that if the government spends more money, that will get more cash into the hands of the people and spark more economic activity.  That was the whole idea behind the "economic stimulus packages" that were pushed through Congress.  However, increased government spending always comes at a very high cost under our current system.  Government debt is now totally out of control.  As you can see below, the U.S. national debt has exploded from about one trillion dollars in 1980 to over 13 trillion dollars today.  Currently, there is very little appetite in Congress for more government spending to stimulate the economy, especially after the results of the November election.

Most Americans don't realize it, but much of our incredible "prosperity" over the last 30 years has been fueled by the mountains of debt that we have accumulated.  Now U.S. government debt is exploding at an exponential rate....

Sadly, the U.S. government has absolutely no self-control when it comes to spending money.  Our politicians are absolutely addicted to debt.

The truth is that the U.S. government just can't seem to stop wasting money. One of the most comical news stories of the past few days involved the Recovery Independent Advisory Panel, which is a sub-committee of the larger Recovery Accountability and Transparency board.  This panel will be holding a meeting on November 22nd to discuss how to prevent "fraud, waste, and abuse" of economic stimulus funds.

So where will this meeting be held?

It is going to be held at the ultra-luxurious Ritz Carlton Hotel in Phoenix, Arizona.

Yes, seriously.

You just can't make this stuff up.

So if the Federal Reserve cannot stimulate the economy through lower interest rates and the U.S. government cannot stimulate the economy by spending even more money, what does that leave us with?

Unfortunately, that leaves us with either doing nothing or with having the Federal Reserve print money out of thin air and shovel it into the economy.

Sadly, even after months of news headlines about quantitative easing, most Americans still do not understand what it is.  The following is a short video that is very humorous but that also does a good job of simply explaining what quantitative easing is and why it is bad for the U.S. economy....

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Silver Shines as an Economic Solution

Youtube - MorphCity

G. Edward Griffin discusses the US monetary system, fiat money, legal tender and the value of silver and gold.

Idaho State Representative Phil Hart explains the "Idaho State Silver Gem Act" that he authored and plans to re-introduce next year. The Silver Gem Act allows the State Treasurer to sell and accept silver medallions for people to use any way they wish. Silver transactions with the State would be penalty and premium free. The silver would be set at market value.

Read the article "Silver Shines as an Economic Solution" at MorphCity

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Will the Dollar Rebound Before Being Dissolved Into Global Currency?

Eric Blair

Activist Post

Every time the dollar begins to decline, I wonder, "Is this it, is this the end to the fiat dollar?"  The fundamentals suggest that it should be finished, but just as the world is about to declare it dead, miraculously a global storyline seems to emerge just when needed and foreign investors rush back in for "safety."  A clear example was the steady drumbeat of a sovereign-foreign-debt war that resulted in reports of whether the Euro would even survive, while the dollar enjoyed a triumphant ride up victory mountain.

Since the "world" declared the Euro debt crisis saved, the focus has shifted to exposing America's deficit problems, which has led to the dollar collapsing to its 5-month low against the Euro. There seems to be a growing realization by foreign countries that a volatile dollar as the world's reserve currency is unhealthy for their nations and the global economy as a whole -- especially as it pertains to vital commodities like oil and food.  This increased awareness is causing foreign governments to invest more in other currencies, gold, and even vast stretches of agricultural land -- while beginning to advocate for a more stable global reserve currency.

Some are defining this volatility as all out "international currency wars." The Telegraph reported on Brazil's fears of a currency war:

Brazil's finance minister Guido Mantega has complained repeatedly over the past month that his country is facing a 'currency war' as funds flood the local bond market to take advantage of yields of 11pc, vastly higher than anything on offer in the West.

'We're in the midst of an international currency war. This threatens us because it takes away our competitiveness. Advanced countries are seeking to devalue their currencies,' he said, pointing the finger at America, Europe and Japan. He is mulling moves to tax short-term debt investments.

There seems to be little hope for the dollar rebounding as the Fed's quantitative easing not only continues, but must increase dramatically to make up ground from lost investors and higher deficits.  Can anything reverse the trend and boost the dollar once again? Perhaps the powers-that-be don't want the dollar to re-strengthen, as indicated by Stephen Lewis from Monument Securities in theTelegraph article, where he said: "The Fed is playing a risky game toying with more QE. There are already signs of investor flight into commodities. The danger is a repeat of the spike in 2008, which was a contributory cause of the Great Recession. Further QE at this point may prove self-defeating."

If history is any indicator, the only thing that may temporarily strengthen the dollar is another manufactured disaster, or global uncertainty, which may entice investors back to U.S. Treasury bonds because they're still widely considered the "safe haven" investment during a crisis. The U.S. is still viewed as the world super power and most innovative economy despite its current economic woes and insurmountable debts.  Therefore, during times of international crisis or collective doubt, the big institution investors tend to flock to the dollar, apparently under the assumption that America is best equipped to weather global storms.

Recent news that Ireland's sovereign debt needs a $40 billion bailout, along with the renewedausterity protests around Europe, or perhaps a major gold scandal may begin to reverse the dollar's decline once again.  However, the severely debased dollar is unlikely to rebound to previous highs given the international awareness of America's financial problems.  Understanding that the goal of the global elite is to move toward a global currency, ultimately they must kill the dollar and other major currencies.

When the world has suffered enough pain from maintaining the volatile dollar as the reserve currency, they will demand, if not beg, for something more stable.  The IMF is pushing to implement the Bancor, which has been introduced as the currency name for the basket of currencies called Special Drawing Rights (SDR).  In America, when the dollar reaches near worthless levels, the desperate public will likely grasp at any solution.  Much like during Katrina when the newly homeless were given ATM cards by the government, we may see the IMF roll out Bancor ATM cards. This will accomplish two goals of the agenda at once:  a global currency that is cashless.


Recent Articles by Eric Blair:
Banksters Inflate Speculative Food Bubble, UN Offers Global Governance Solution
Economic Collapse Leading to Privatized Police and Corporate Mercenaries
Secretive Executive Order Establishes 'Big Brother' Health Bureaucracy

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Live Superfoods It is time to Wake Up! You too, can join the "Global Political Awakening"!

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