A MIND FOREVER VOYAGING THROUGH STRANGE SEAS OF THOUGHT, ALONE


This is my second blog.

My first blog chronicled my experiences over three years caring for my dad as he lived through and finally died from Alzheimer's. That is the book that is for sale.

This second blog kind of chronicles of life, what it is like to start your life over in your late 50's. After caretaking, you are damaged, file bankruptcy, and the world doesn't care what you did. After 8 months of unemployment, you wake each day knowing the world doesn't want you. Finally you do find a job, 5 weeks before homelessness, but doing what you did 30 years ago and getting paid what you did 30 years ago. So this is starting over.



The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane.

Saturday, October 26, 2013

WHAT GOES UP, MUST COME DOWN

Lots of news stories this past week about Chase and other banks placing limits on cash transactions, limiting withdraws, and restrictions on overseas transfers.  Most story lines focused on the fear of people transferring their money out of the country as they make their getaway to Sweden, Switzerland, or Belize.

By the way, any of my imaginary readers that were thinking of Belize or other Central/South American countries should listen to John McAfee's tale of what can happen to wealthy Americans trying to setup life in a Central/South American country.

The problem with all these stories is they are missing the point of what is going on.  This is not an attempt for money to flee the country, it's stopping dollars from coming back into this country.

Ponder that for a moment.  Fences with barbed wire can be used to keep people in, but also to keep people out.

The dollar is dying and the world knows it.  Couple that with how seriously pissed most of the free world is with Obama and the United States right now for spying on all their phone calls and here is what really scares the financiers of America:  all those foreign owned dollars and bonds suddenly finding their way back to America.  Picture a kid trying to sort 4 dozen marbles and someone comes along and drops another 12 dozen marbles on top of him.

If all those foreign used dollars were suddenly sent back to the US, your dollar, which is really worth about 2 cents from what it was back in 1913, would become less than a penny.  Okay, lost some on that maybe.  If there were 6 trillion dollars in circulation in the US and suddenly another 6 trillion were put in circulation overnight, your 1,000 dollars would lose half it's value and only buy 500 dollars worth of stuff.

So what we are preventing is not our citizens moving money out of the country, we are preventing foreign citizens/corporations that own dollars from flooding our market as they dump the dollar.  Which makes me also think, connecting the dots of history, there is another few cards in the deck about to be played.

The dollar is about to be eliminated, completely, replaced with a new US currency.  Maybe the Canadians will join us, maybe the Mexicans, but let's keep it simple and just say Americans will be involved.

We will call the new currency, the Obama.  One Obama will be set to 3 US dollars and any US citizen with dollars in US banks, any corporation with dollars in US banks, will automatically exchange their 3 dollars for an Obama.  Your rent, mortgage, salary, etc etc etc will all be reduced accordingly, so instead of 900 dollar rent your rent will be 300 Obamas.  Your salary of 60,000 dollars will be 20,000 Obamas.

And any foreign person or government holding US dollars, well, it will not be worth anything.  So all the debt we owe foreign holders will be gone.  Our debt with be reduced by 2/3, so most Americans will think "hey, that's great!" without realizing the shell game just done.

Or, we may join the Euro, except call it the Amero, and make it a one to one trade; Canada and Mexico will definitely go for this, as will Europe, and the advantage to this solution will be to create a giant conglomerate of European and North American currency to prevent the Chinese currency from becoming the de facto currency of the world.  I would almost bet Russia would then join the Euro under these circumstances.

Either way, foreign owned dollars and bonds will be worthless and no way to move them back to the US.  And this is going to cause some interesting reactions from Asia.  China and India could very quickly, followed by all of Southeast Asia, into the Chinese currency.  Oil would trade for either, the arabs don't care.

Now all of this may sound like the ravings of some idiot blogger, which it is, but that doesn't mean it is wrong.  See, you only need to go back 40 years to understand this kind of thing happened before.

Nixon was president and our dollar was tied to gold.  Gold was fixed at 35 bucks an ounce and had been for over 100 years.  Well, the Brits had been collecting lots and lots of dollars over the years and one day called up Nixon and announced they had a few billion in US dollars and wanted to trade them all in for gold.  It would have seriously cleared out space at Fort Knox.  Dangerously so.  Nixon paced and cursed around the White House for a few days then met with the Saudi's and the deal was struck.  We would go off the gold standard, the price of gold would no longer be fixed, the price of oil would also become unfixed and Opec would only trade oil in dollars, requiring any country that wanted to by mideast oil to buy it in US dollars.  And Nixon told Britain to stuff it.

The point is, we technically defaulted.  It was a very very bumpy decade that followed but eventually it all settled down.  So don't think the same slight of hand screw job can't be pulled off again.

There was a time we had a good thing going on
You and I both know the reason why it all went wrong
Tried to stick by you, help you see it through
But you used me all up, now you're on your own

So, don't come around here no more, bringing me all of your bad rain
Can't you see I've got troubles of my own?
I ain't got time to be messing with all of your bad rain
Why in the world can't you just leave that stuff alone?
Allman Brothers

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