Long Silver John

Will the Dollar Decline Forever?

In 1923, as I recall reading, there was a fairly steep drop in the value of the Mark on world currency exchanges (down 2/3rds in four months). Then it paused with government intervention. Then, as the dam broke and faith evaporated, the value of the Mark simply vanished. The ones who survived were those who bailed out and converted into gold/silver. If the same pattern is happening here, look for a 3-4 month steep drop in the dollar (spike in gold/silver), followed by government intervention, then a swift demise of the dollar as the Chinese and others bail out of Treasuries. Just think of that. The Chinese are able to destroy our country by doing almost nothing. We can then expect to see political instability here, as the Internet makes organizing against government that much easier, accompanied by military adventurism by rogue states abroad (just wait and see as Iran gets the bomb). All this because our elected leaders believed their primary objective was to get re-elected.

What Is Going On With Gold?

As economies around the world race to zero interest rates, the currency game will collapse if the Middle East creates a new currency backed by gold, with oil priced in it. That will tip the balance on currency manipulation. All I can say is that when the archeologists uncovered 264 gold coins in Israel the other day, those coins were still worth something....