The Fragile Dollar
Mr. Bush and the administration, possibly even Congress, know the following fact, a quote from The Privateer Issue Number 579:
"The US government stands or falls on the viability and acceptability of the US dollar."
Thus, there was intervention in the gold market last and this week to depress the price of gold. Gold is the alternative to the FIAT currencies of the world. To preserve the dollar, the action was taken and was temporarily effective. With all of the unrest and warring in this world of ours, it is impossible, without governmental intervention, for the price of gold to be so depressed.
The fact that the US dollar remains as the primary reserve currency of the world gives it great advantage. Most international transactions are made in the reserve currency, so other currencies must be exchanged for US dollars to make international payments. However, we are seeing more trading taking place in EUROs and now the Russian ruble can be redeemed world wide. Thus, there is a continuing erosion of the demand for the dollar. At some time, the drop will become significant.
The US debt, public and private - funded and unfunded, is at level in relation to the Gross National Product or any other measurement which has never in history been seen. For all practical purposes, the US government is bankrupt.
As more people begin to see and understand the financial situation we are in, there will be an exodus from the dollar. In such situations, as Gary North has often said in words to this effect, "It is better to be months early, than a day late."
Fellow Christians, it is time to make plans to get out of debt, begin non-dollar savings and investments, commit these plans to the Sovereign Lord, take the action, and depend upon Him for the success (Pr 21:31). I believe this to be critically important.
Further, we must humble ourselves before the Lord our God, turn from our sin, pray to Him, and ask Him to heal our nation. A great part of humbling ourselves before Him is participation in corporate worship. Tomorrow is the Lord's Day and it is our responsibility to join with other Christians in corporate worship. It is the responsibility of the spiritual leader of each family to insure that the family joins in this worship on a regular basis.
Pray for our nation.
Best to each, Doug
"The US government stands or falls on the viability and acceptability of the US dollar."
Thus, there was intervention in the gold market last and this week to depress the price of gold. Gold is the alternative to the FIAT currencies of the world. To preserve the dollar, the action was taken and was temporarily effective. With all of the unrest and warring in this world of ours, it is impossible, without governmental intervention, for the price of gold to be so depressed.
The fact that the US dollar remains as the primary reserve currency of the world gives it great advantage. Most international transactions are made in the reserve currency, so other currencies must be exchanged for US dollars to make international payments. However, we are seeing more trading taking place in EUROs and now the Russian ruble can be redeemed world wide. Thus, there is a continuing erosion of the demand for the dollar. At some time, the drop will become significant.
The US debt, public and private - funded and unfunded, is at level in relation to the Gross National Product or any other measurement which has never in history been seen. For all practical purposes, the US government is bankrupt.
As more people begin to see and understand the financial situation we are in, there will be an exodus from the dollar. In such situations, as Gary North has often said in words to this effect, "It is better to be months early, than a day late."
Fellow Christians, it is time to make plans to get out of debt, begin non-dollar savings and investments, commit these plans to the Sovereign Lord, take the action, and depend upon Him for the success (Pr 21:31). I believe this to be critically important.
Further, we must humble ourselves before the Lord our God, turn from our sin, pray to Him, and ask Him to heal our nation. A great part of humbling ourselves before Him is participation in corporate worship. Tomorrow is the Lord's Day and it is our responsibility to join with other Christians in corporate worship. It is the responsibility of the spiritual leader of each family to insure that the family joins in this worship on a regular basis.
Pray for our nation.
Best to each, Doug
posted by Doug @ 11:05 AM
1 Comments:
At 10:20 PM,
Derek said…
I'm a young investor and only know what my grandfather taught me about the stock market. My family has a substantial savings in mutual funds. Are you advising people to get out and invest in primarily gold? I'd appreciate your expertise in this. If I did invest in gold, how would I keep diversification in my portfolio?
Thanks
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