There is a coming dollar collapse due to the tremendous debt load of our government and its citizens. Thanks to the US having a large gold reserve we do have an option out of this mess, which is the creation of a new currency… a new dollar. Our money won’t go to zero like many are predicting, because the US has a Plan B.
This new dollar that will be created will be backed by gold, silver, and other valuable commodities. The new dollar will be issued by the US Treasury, not the Federal Reserve. Bye, bye, Bernie… oops… make that Bernanke.
When will this happen?
When silver nears $100 per ounce and when gold approaches $5,000 per ounce.
The exchange rate for US citizens will be one new dollar for 100 old dollars. For non-citizens, the rate will be one new dollar for 1000 old dollars. The new dollar will be pegged to one ounce of silver, or 1/50 of an ounce of gold. US coinage will be retained and not re-minted due to the costs involved in doing so, thus a nickel under the old system will be a nickel under the new system.
All debt, both private and public, will be reduced by a factor of one thousand.
Examples of how this will impact American citizens:
Fred Smith was earning $1,000 a week and his mortgage was $100,000. Gas went up to $10.00 a gallon and Fred had $10,000 in savings. Under the new currency Fred will now makes $10 a week and his mortgage total is $100. His savings has been reduced to $100, but now he can pay off his mortgage with it. A fill up at the gas station will cost ten cents a gallon. Overall Fred has done well, he now owns his own home and his currency is stronger and stable.
Larry Jones was receiving a pension of $1,000 a week. He recently sold his home with owner financing to Fred for $100,000. And, he had his savings of $100,000 in US bonds. Larry now receives $1 a week through his retirement program. Fred gave him $100 new dollars to make full payment on the house that Larry sold him. And the bond that Larry owns will one day pay him a total of a hundred new dollars. Larry did not do well under the new currency exchange. Unless Larry finds work in a few months he will be destitute.
Sam Carpenter saw what was coming. He went to the bank prior to the collapse and bought $10,000 worth of nickels. He also bought $100,000 worth of silver at $25 an ounce, which gave him 4000 ounces of silver. He went out and bought a home with a minimal down payment and a low fixed interest loan for $100,000. Sam’s nickels retained all their value when transferred to the new dollar system and so he was able to pay off his mortgage (which was adjusted to $100 new dollars) and still have 9,000 new dollars left over. His silver was now worth 4,000 new dollars. Sam did very well.
The US also did well, effectively converting trillions of dollars worth of debt to a few billion. Thanks to its gold reserves America lived to see another day. But now that the currency was locked to a set amount of backing, the government can no longer be able to print money and is thus forced to live within its means, which will create hardships on many (those who rely upon funds directly from the government). Of course the US can always borrow again, but if it does, the only option out of the eventual next collapse would be the creation of a world currency, something we do not want to have inflicted upon us.
Prepare now. Buy silver and gold. Save your change. There will be hardships through this process; there will be shortages, high prices, high unemployment, and social unrest. Life as we know it is about to change, change is uncomfortable. Things will get better again after a while, especially for those who are aware of what is coming, and who prepare for it.
In the final days we will witness high inflation. I won’t be surprised if we see gasoline sell for $10/gallon, maybe $15. Basic necessities like food and clothing will be a struggle for the average family to afford. Stock up now. Bargains will be had on high end and luxury items, but try to avoid the temptation.
Why will the gold to silver ratio be 50:1 and not the historic 16:1? Because the US no longer has a silver reserve. It won’t be hard for the US to get a small reserve of silver once the new currency is issued, as many citizens will rush to sell their silver stashes in exchange for new dollars. It’s no secret that the gold and silver market prices are being manipulated, but they are not just be held down, they are being positioned to be as near as possible to the 50:1 ratio. Just look at the dollar value printed on the gold and silver coins being minted today. A one ounce gold coin of decades ago was valued at $20 and a silver one ounce coin was at $1 (approximate weights), today its $50 and $1.
With these figures in mind you can see that by purchasing gold or silver today you will be able to not only hold onto your savings, but likely you will be able to triple its value. But an investment in nickels by comparison will bring you a hundredfold return on your money. You will never lose money on investing in nickels; their metal value alone is worth more their established value, that’s something that cannot be said for our other coins.
Certainly don’t put all your money into nickels. Silver and gold have been treasured worldwide, since the dawn of mankind. They are easily portable and you will never see them drop in value like those pieces of paper that you carry in your pocket. The US dollar has lost 95% of its purchasing power since it was removed from the gold standard. It’s about to be reset to its former glory, thus the 100:1 ratio conversion between old and new dollars that is coming soon.
The US likely won’t bother re-minting its coinage, with sliver. The cost would be too high and it would take too long to implement… and remember the US right now has no silver reserve; it sold it all off years ago. The public likely won’t care, as long as they know that they can take four quarters and exchange it for a new dollar backed by silver and gold. With this in mind it makes sense to save all your pocket change, but if you want to go with a sure bet… go for the nickels, the only coinage that has not changed its metal content in generations.
The web is full of advice to get out of debt now. True, if you can’t afford to maintain your debt level between now and when the currency reboots, then you ought to get out of debt. Debt however, in today’s nearly worthless dollars, where you can procure something of inherent value, such as real estate, or precious metals, or sustenance needs, is without a doubt the greatest investment you can make. A small investment in precious metals or US coinage now will allow you to wipe out any debts easily in the near future. Hold onto that house that is “underwater”, and consider taking out a mortgage on bargain priced rural home.
As noted before, debt levels will be erased at an even higher ratio than the currency exchange rate. We’ll likely see a 1,000:1 ratio, but it could just as easily be set at 10,000:1, or possibly erased all together. This is an opportunity for the country to erase its debts clean and start fresh and be once again competitive. Can you imagine this nation with no debt? And it’s citizens with no debt? What a powerhouse it would be. The US will anger and hurt many with a partial default, how much worse would it be with a complete default? Regardless of whether it will be a complete or partial debt default coming with the new currency, debt now, to purchase things of intrinsic value, will be considered in the future a once in a lifetime buying opportunity.
So the next time you visit your local banker, see it you can take out a million dollar loan for that dream place in the country, and if you can, go ahead and get a thousand dollars worth of nickels, knowing that in a short while you’ll be lugging them all back in to satisfy that mortgage.
Many people talk about debt not being a problem during inflationary periods. For me, the issue isn’t the principle, its the serviceing the debt and it depends on a number of factors:
- fixing the interest
- handling the transition from inflation, to high inflation to hyper inflation
- keeping a job
- being lucky with your plans
Thew guy in this story was very lucky