Posted by: doggings | November 17, 2008

G20 Sign Dollar Death Warrant

3 weeks to the day from regurgitating this doggy style here dollar death knell

I am certain the US is less than a month away from a $ currency collapse. The fed and treasury are not even taking the time to think at this point: they are just throwing money and guarantees at each new problem that pops up without worrying about the consequence. Since no one can imagine a currency collapse, there isn’t the political will to take the painful steps needed to prevent it (reign in fed and let institutions fail). The forces and trends behind the financial collapse are too powerful to stop.

they’re meeting behind closed doors this weekend, G8 has suddenly become G20 and they’re discussing the imminent passing of the US Dollar for real.

world economies in freefall

world economies in freefall

With the G7 banking systems continuing their plunge into the abyss the reason the other G12 have suddenly been invited along is because their cooperation is now required.

from (the Market Oracle of course)The G-20’s Secret Debt Solution

“the G-20’s motive for a new monetary system: It’s driven by and based upon this very simple proposition …

“If we can’t print money fast enough to fend off another deflationary Great Depression, then let’s change the value of the money.”

That’s what central banks and governments around the world are going to start talking about this weekend — a new financial order that includes new monetary units that helps to wipe clean the world’s debt ledgers.

It won’t be an easy deal to broker, since the U.S. is the world’s largest debtor. But remember: Debts are now going bad all over the world. So everyone would benefit.

Fed Chairman Ben Bernanke … Treasury Secretary Paulson … President Bush … President-elect Obama … former Fed Chairman Paul Volcker … Warren Buffett … and central bankers and politicians all over the world agree a new monetary system is needed.

So they’ll start hashing out the details to get the new financial architecture deployed as quickly as possible. If you think I’m crazy or propagating some kind of conspiracy theory, then consider the historical precedent …

To end the Great Depression in 1933 Franklin Roosevelt devalued the dollar via Executive Order #6102, confiscating gold and raising its price 69.3%, effectively kick starting asset reflation.

It would be a strategy designed to ease the burden of ALL debts — by simultaneously devaluing ALL currencies … and re-inflating ALL asset prices.

You might get the dollar back, along with one or two of the other stronger currencies, the Euro etc, but they will be shadows of their former selves.

And if the author is correct in his speculation about the possible ceiling on the price of gold, well lets just say at up to $53000 an ounce gold holders will be happy bunnies 🙂

“If you have wealth and don’t own gold, then you will soon be poor.

If this last statement could apply to you, maybe you’d better click the links and go read the articles?

This dogs off to hunt for that old wedding ring, it’s gotta be at least ten grand’s worth by that valuation.

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