Because bartering for goods and services is too
constraining, something has to act as a currency. You can have two types
of currencies: - Fiat currency, which is simply an IOU, with no
collateral, or a commodity currency, which is an IOU with collateral.
In the latter currency, the commodity to be used must be
a universally accepted collateral, capable of being stored in Central
Banks, be of a singular grade, and be denominational.
Items like cattle, chickens, lumber, real estate, oil,
etc, come in different grades, aren't static, and wouldn't store at
Fort Knox. The only workable commodities are the precious metals like
gold and silver.
This allows the Federal Reserve to expand the money supply at whatever
pace they want to. They just print more money, and loosen credit
Their value is determined off the cost of similar goods and services in
other countries. If a Ford F-150 pickup truck costs $20,000 in the US,
than it should cost $20,000 in England.
China and India will keep their currencies low to attract business. A
web designer in India will charge $200 for a website, versus an American
designer charging $1,000.
Unavoidable Fiscal Time Bombs
Consumer prices increase 1000%
Massive Federal Debt
Social Security and Medicare
If the Federal Reserve tightened credit, as they did in 1929, you would
have a worldwide economic collapse.
The excuse will be that an Arab terrorist attack weakened the economy,
and that, coupled with 'Fiat money', will probably cause a worldwide
World Central Banks Gold Sales In Tonnes
World's Central Banks
World banks, which are controlled by Zionists, have sold 70% of their
holdings. The other 30% is leased (basically is gone).
Why Are the Selling?
Gold sales bring in nothing financially. It's the equivalent of selling
your $50 fire hose for your $20,000,000 mansion. Whoever is buying will
control the new currency.
The End Result
At some point, there will be a 1929-type credit squeeze,
the world economy will tank, and we will see the greatest wealth
transfer in history. International bankers will blame fiat money,
aggravated by an alleged Arab terror attack, and will clamor for a 'One
World Currency'. That currency will be commodity based, and that
commodity will be gold.
The price of gold is determined by taking the world's debts, liabilities,
and money supply, and dividing it by all the gold in the world.
Gold will become just an equation, and its number could easily be $40,000
an ounce. If you're on the Titanic, and you have $40,000, than that's what
a seat in the lifeboat is worth. Stocks, bonds, and financial assets will
be bought for mere pennies.