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Dr. Jim Willie: Banks, Bonds And Currencies Are All On The Edge Of Collapse, We’re Going To See A Doubling Of The Gold Price Overnight


http://usawatchdog.com/dr-jim-willie-… – Dr. Jim Willie, Editor of The Hat Trick Letter, predicts, “50% dollar devaluation . . . we’re going to see a doubling of the gold price overnight.” Dr. Willie contends, “The Treasury bond will be phased out and gold will be phased in.” Join Greg Hunter as he goes One-on-One with financial writer Dr. Jim Willie of GoldenJackass.com.

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  • http://WithGLEE.com/ Todd B. Marshall

    The Treasury bond will be phased out. That is true. But it will probably just be replaced by the SDRs leaving the same crooks in control.

    Gold or gold backing will never be introduced because, among a zillion other reasons, there’s not enough of it … just one ounce per human on Earth … about $1,300. And you can’t just say it’s worth more to get the backing coverage you need. The value is determined by the cost of production … a little less than an ounce of gold is traded for a new ounce of production. That won’t change.

    What we really need is a properly managed Medium of Exchange (MOE) where money (a promise to complete a trade) is freely available to responsible traders and inflation of the MOE is “guaranteed” to be zero always and everywhere. This is possible my certifying trading promises … the certificates then widely exchange in barter because they never lose value. When the trade is delivered, the certificates are returned and extinguished. If the trade defaults a like amount of interest is immediately collected to recover the certificates. This guarantees inflation of the MOE to be zero by the relation: INFLATION = DEFAULT – INTEREST.

    Zero inflation is as good as any MOE can possibly do. Any MOE that delivers this way will drive out all other currencies but can coexist with other properly managed MOEs.

    • Jerry

      Suppose we have 3 or 4 times the gold that we are said to have world wide? According to whistle blower Karen Hudes, we do.

      • http://WithGLEE.com/ Todd B. Marshall

        We have 1oz of gold per person on earth. In today’s dollars, that’s about $1,300. If there was 4 times as much, normal supply and demand theory the value of gold word be reduced to about $260. It’s kind of like another gold rush … the price is immediately depressed.

        But even if we’re at steady state with 4oz of gold per person and an ounce worth $1,300. Then there is $5,200 per person. If the average person doesn’t have some savings and trading promises in excess of $5,000 we have no economy to worry about. In short, we would need several orders of magnitude more gold for it to be used to back all trades (currency) and savings (ledger sheet numbers).

        And on top of this, it is clearly the “wrong” way to support a properly managed medium of exchange. We can do much much better.