The Dollar Meltdown is definitely a gloom and doom book. Fortunately, the author’s style of writing and enthusiasm for his subject – how to avoid the doom – keep the book from being depressing. Charles Goyette – the author – simply tells it like it is. And what it is, is a sad state of affairs. Goyette’s presentation is composed of four parts: where we are; how we got here; what happens next; and what to do.
Under the heading of ‘where we are,’ Goyette points out that “the future of the dollar has already been determined.” For all intents and purposes, the dollar is dead. It has lost “96 percent of its purchasing power under the Federal Reserve System’s mismanagement.” Along with a valueless dollar, Goyette makes it abundantly clear where we are:From January 2007 to 2009, 5.1 million jobs were lost; 13.7 million people were out of work and 32.2 million people were on welfare (food stamps). Retirement plans are all but worthless. $9.7 trillion was spent on bailouts. An astonishing number of homes – 19 million – stand vacant. U.S. debt is approximately $12 trillion.
Goyette then proceeds to discuss the great bailout, which he equates to robbing Peter to “subsidize a few hundred banking Pauls.” The result is massive debt. He quotes David Walker, the former comptroller general of the United States, who said, “The system is broken.” In a nutshell, Walker’s statement pretty much sums up where we are.
The second section of the book talks about ‘how we got here.’ Goyettes begins by showing how gold came to “serve as money.” Nations whose economies are based on precious metals are healthy. Those that aren’t, fail. During the Civil War, America first forsook gold and silver. However, by 1879, the country went back to the gold standard. Then in 1934, private ownership of gold was abolished. And in 1971, Nixon chose to go off the gold standard. At that point, inflation took over.
Goyette provides historical examples of what happens when governments choose paper money over the gold standard. He cites China, the Roman Empire, the French Revolution, Germany, and Zimbabwe, where the annual inflation rate “hit 231 million percent in the summer of 2008.”
It is interesting but not useful to chart the decline of the dollar since 1913. It is no suprise that most currencies are worth less over time. What we fear is not the long slow devaluation of the dollar it is rather the sudden plunge due to hyper-inflation. We may well see that, in fact I think the odds favor it. But the performance of the dollar over the previous 100 years or so is NOT the cause and is not an indicator of a future hyper-inflation. We live in interesting times, a euphemism for we are facing many real and potentially disasterous scenarios. The question is which one hits first (or together). If Iran (or anyone) gives the terrorist nukes and they blow a couple up inside Israel then Israel will retalliate and the Middle East will be a disaster on a biblical scale. The oil flow will stop and that will destroy our economy even with a strong dollar. If the terrorists choose NY City over Tel Aviv the story will be different but clearly not good. I could go on with the many very real, possible scenarios that we face but the point is which one to prepare for? Prepare for everything; hope for the best, prepare for the worst. There is less time then you think...
ReplyDelete10:24 what terrorists? If "terrorists" wanted to succeed in destroying the US they would have done it by know. Why do you think there are so many "terrorist" failures as of late? Odd isn't it? Can't even light a wick right? I doubt it..
ReplyDelete@10:24
ReplyDelete"Prepare for everything; hope for the best, prepare for the worst. There is less time then you think..."
Althoug I believe delfation will devour us before hyperinflation you're spot on. Good luck to you
For the after-thought ... this book will probably serve a good library reserve to teach future generations... as history is written by the victors - but truth is never forgotten only hidden.
ReplyDeleteAs for 10:24 - the middle east war of biblical prophecy or whatever associative manner you desire is a fabricated one. Those with money have power over EVERYTHING else... choose to stop playing in the GAME and Prepare like you said for the worst as EVERYONE goes into SHOCK when all the money evaporates and the drug euphoria is over here in the US.
I hope everyone will not turn on each other but help one another - as that is the only way many will survive - but many will betray their humanity or have already for selfish motives...
The ROOT of all evil and the destruction of civilizations have not been so much war... but devaluation of a country's MONEY. What is to happen with the Global economic markets... let them collapse... start to think locally and construct a commerce system to maintain an economic market. Good Luck everyone...
Terrorists have already succeeded in causing massive damage to the U.S. economy and loss of freedoms. However, the real terrorists are from within, not brown people from foreign lands.
ReplyDeleteYou got that right my friend.
ReplyDeleteIf there is so much propaganda surrounding Iran why is it that Obama seems to love them so much and the media rarely talks about them being a problem?
ReplyDeleteThere are countries that hate the USA, in history countries do have conflicts and they didn't just magically begin when the United States came to power. Conflicts have been going on between nations since the dinosaurs, though their nations consisted of packs.
11:47 the US has done more for the world and other countries than any other nation in history. We are the only nation to ever defeat enemies then help them prosper. All other countries would let that country just sit in ruins.
Though I believe the United States has become an embarrassment in the last 15 years; it really dug its grave when Obama came in, and when the healthcare bill was passed that prepared the coffin. The dollar will be the death.
Whatever the truth may be about our wars we have been destroyed from within.
Fox news is reporting that they have successfully connected a pipe to it that is now siphoning the oil. We'll see. Let's hope for the best!
ReplyDeletePipe to what? I don't know what you are talking about.
ReplyDeleteA 1 mile long pipe..completed in 2 weeks...connected using what...we are talking a mile down and pitch black in teh best of times...now even more so from the oil...Do you realize the pressure that the spill is accelerating out at...It's like putting a straw on a gushing fire hydrant..
ReplyDeleteAl CIAda is everywhere!
ReplyDeleteSubmit and enjoy your servitude!
933 if we do ever have to deal with those kind of bombers, It will be the fault of the usa govt and cia, they let these things happen so they can take away as many rights as possible as fast as they can, did you notice how all the latest Fake attacks failed?
ReplyDeleteReally i appreciate you for reaching to the roots of the causes of depression.This is really very helpful for you all in future.
ReplyDeleteThe problem is not paper tokens but rather lawlessness and corruption.
ReplyDeleteGold and silver are not static in terms of valuation (they are always increasing in volume due to mining), therefore poor forms of money for global commerce.
The solution is to live within your means and maintain paper tokens and/or electronic derivatives in proper proportion to real growth and economic output. Unfortunately this is not possible with corruptible human beings. Only the true owner and sustainer of all can impose such a measure without missing a beat.
The Pyramid Eye people do well to consider and heed the following: the so-called "aliens" that some are in contact with from time-to-time are nothing more than fallen angels masquerading as such with a surreptitious agenda; they care not one iota for humanity, including these moronic elite.
THE dumbass
ReplyDelete"uncle Ben" has kept interest rates toooo looow for toooo loooong.