June 17 a bill to replace the dollar with electronic currency goes into effect!?


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I wonder if all of us are on the same mailing list? The alarming letter I received yesterday claims that the Federal Reserve can create so many more electronic dollars than the paper FRNs that come mid June only electronic currency will be good for anything.

This sounds unconstitutional to me but that is not likely to stop it from happening. I don't know the bill number or if it has been passed or signed into law yet. I haven't heard anything about it except for this letter. Did anyone else get it?

gg

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The Undertaker had an opportunity to walk the walk but chose not to. He could have initiated some rational reform while he was at the helm of the Federal Reserve. I guess he traded his principles for power. What a disappointment.

URL=http://s732.photobucket.com/user/backlighting/media/AlanG.jpg.html]AlanG.jpg

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That does not sound good. If all currency becomes bits in a computer, you can't hide your money anywhere.

Also the government can help itself to your money and you could not stop them.

Ba'al Chatzaf

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That does not sound good. If all currency becomes bits in a computer, you can't hide your money anywhere.

Also the government can help itself to your money and you could not stop them.

Ba'al Chatzaf

Bob,

They sure did in Brazil.

I lived through that. It was called the Collor Plan (the first plan, not the second).

Basically, they froze everyone's bank accounts for a while, then released the funds back in 18 monthly installments. This meant everybody. Did I say everybody? Well, it was true. Rich, poor, famous, humble, powerful, housewives, everybody. Companies couldn't make payrolls. Nobody could pay their bills. And so on. It was awful.

Since a lot of people literally died of heart attacks, etc., (they dropped like flies back then), and there was a lot of corruption (there still is)--meaning there were a lot of fishy bank accounts with a lot of money in them, there was a hell of a lot of money left over that didn't have proper owners to claim it. All that went to the government.

The people who made out like bandits were those who had physical American dollars (or other foreign currency) under their mattresses, physical gold stored somewhere, etc. It didn't help to own real estate back then because you couldn't sell it--nobody had any money to buy it, but the taxes still kept coming due.

I know economic hell on earth.

Michael

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Michael,

I just received another lengthy letter from something called The Sovereign Investor or the like. In it he points out that the Chinese government announces its gold holdings like clockwork every five years and the last announcement occurred on April 24, five years ago! He gives numbers. I don't have it in front of me. But if China states sometime soon that it now holds several times more gold than it did five years ago the whole world will take notice.

You all noticed recently that Germany asked for its own gold, which it stored in the New York Federal Reserve Bank in NYC 80 feet below ground, but was told it would take seven years to return it all. Instead they were given a token amount.

It is likely that after the announcement from China that the US Fed will be obliged to make a showing of its own store of gold. No audit has taken place for over sixty years. The likelihood is that there is next to none to be found. So much for the full faith and credit of the United States. This is what is expected by a number of gurus in the financial business.

The consequence is loss of confidence and trust in the dollar and the dollar will be dumped wherever it is to be found. The Fed will go to town printing so it doesn't default on its payments to bondholders around the world. Meanwhile the cost of gas will go to $9 a gallon, ground round will be $10 a pound etc. Massive layoffs will drive the unemployment up to twice the 23% it is now.

Although this is presented as an imminent catastrophe one is urged to sign up for their newsletter will special papers on various suggested investment ploys.

I don't know what is going to happen although we might experience both deflation and inflation and hyperinflation too. It is hard to predict just when life as we know it will change. Interest rates will go up which will hurt the housing market.

Hopefully the trucks will keep food coming into the cities no matter the cost. Those in power in politics will see this as an opportunity to blame others and impose some sort of controls.

Don't put off doing all the things you will not have the time to do once all hell breaks loose. I think I'll order a Berkey water purification system afterall.

gg

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