TheOldMan
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- Nov 26, 2011
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The future ...
- Thread starter TheOldMan
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jim4silver
Silver Member
- Apr 15, 2008
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While nobody knows for sure what will happen, history has shown time and time again that as a currency is debased more and more, said society falls apart more and more until it is eventually "wiped out" in a financial sense. If you look back at ancient Rome, it appears that debasing the silver content of their coinage led in part to their downfall (see below article). Their debasing the silver content would be similar in a sense to our current QE or money printing since today we don't use PM based currencies.
It still boggles my mind when people I know who are intelligent think that it is not too big of a deal that our debt keeps growing and that money printing (QE and loose fiscal policy) will actually help us over the long haul. Further, many of these same folks think backing the dollar with anything tangible won't work or is a bad idea (maybe it is in fact too late to do this to save the dollar?). I guess if/when the day finally comes that the currency completely loses value and inflation really takes off, these same people will see that they were wrong. We PM bugs might turn out wrong, but I would bet that the odds are in our favor based on all the current financial problems out there, including the looming derivatives mess that is starting to rear its ugly head.
Hard to believe that in just the past 4 years or so, the national debt has risen from 10T to 16T. Anyone think that number is going to get smaller over the next 20 years? I don't know what day and year the "debt clock" started (day 1 so to speak), but this means the debt value from the past 4 years is just slightly less than all the debt from day one, whatever day one is (1776, 1913, etc ??).
If, and this is a big if, there is a future problem with the dollar losing value fast and inflation taking off, the value of gold and silver in said dollar terms could reach numbers that right now would seem beyond impossible. If said increased value of PMs is associated with a sudden huge loss of dollar value, a PM holder would not per se become rich, but their original buying power would be preserved. I guess though compared to those holding all their money in dollars and such, PM holders could seem wealthy.
This summer the big PM shorters may push PMs to lower levels than many here are comfortable with (such as silver in the lower 20's), but I would say that is the time to load up if it happens.
Fall of Rome - Economic Reasons for the Fall of Rome
Just my opinion.
Jim
It still boggles my mind when people I know who are intelligent think that it is not too big of a deal that our debt keeps growing and that money printing (QE and loose fiscal policy) will actually help us over the long haul. Further, many of these same folks think backing the dollar with anything tangible won't work or is a bad idea (maybe it is in fact too late to do this to save the dollar?). I guess if/when the day finally comes that the currency completely loses value and inflation really takes off, these same people will see that they were wrong. We PM bugs might turn out wrong, but I would bet that the odds are in our favor based on all the current financial problems out there, including the looming derivatives mess that is starting to rear its ugly head.
Hard to believe that in just the past 4 years or so, the national debt has risen from 10T to 16T. Anyone think that number is going to get smaller over the next 20 years? I don't know what day and year the "debt clock" started (day 1 so to speak), but this means the debt value from the past 4 years is just slightly less than all the debt from day one, whatever day one is (1776, 1913, etc ??).
If, and this is a big if, there is a future problem with the dollar losing value fast and inflation taking off, the value of gold and silver in said dollar terms could reach numbers that right now would seem beyond impossible. If said increased value of PMs is associated with a sudden huge loss of dollar value, a PM holder would not per se become rich, but their original buying power would be preserved. I guess though compared to those holding all their money in dollars and such, PM holders could seem wealthy.
This summer the big PM shorters may push PMs to lower levels than many here are comfortable with (such as silver in the lower 20's), but I would say that is the time to load up if it happens.
Fall of Rome - Economic Reasons for the Fall of Rome
Just my opinion.
Jim
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