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WHAT WOULD HAPPEN IF THE POPULACE FIGURED OUT THAT FIAT IS JUST PAPER?

December 26, 2012

Did you ever wonder what if? What if this had happened what would our life be like if we had made a different decision? Made different choices?  Married someone else? What if we had won the lottery?  What if I had done things differently? What if John F Kennedy or John Lennon had lived to die of old age?  What if our government was run by honest, moral, principled men and women of honor? What if cars had been made to run on water instead of gas and diesel?  

It's fun to imagine what would have happened as well as what would happen if.... What would happen if, in a very short period of time, the entire world realized that their currencies and every other countries currencies were simply pieces of paper with ink on them, and had no value of any kind? What would happen if, the world realized that we all had been playing with Monopoly "money" which was the equivalent of dollars,francs, pesos, or yen, as far as value is concerned. What would happen if, everyone, in a short period of time, found out that there was nothing backing their currencies other than "The full faith and credit of their government"?

What would happen if, all the world's governments, it was discovered, had sold all their gold and their treasuries were empty except for gobs of paper "money" and empty promises? What would happen if, an honest inventory was taken at Ft. Knox and it was discovered that all those big trucks seen leaving over the years had the US gold in them and it was all gone? After all, the last inventory was taken in Eisenhower's time and many of the readers of this screen weren't even born then. What would happen if all the world realized they had been conducting their business with printing press money and that the presses were running ever faster to keep the whole thing from crumbling into a total economic collapse? What would happen, if the world realized that prices keep going "up" but the value of the things they buy remain the same? What would happen if, the whole world realized that fiat can apply to "money" as well as cars and they all at once struggled to get out of paper and into tangible things?

When the stock market begins to tumble people either sell, exacerbating the situation, or go short. When the Y2K thing came up, everyone bought generators and caused a shortage of them as well as higher prices. When a hurricane threatens everyone cleans out the supply of plywood, bottled water and flashlight batteries. What would happen if, the whole world realized that the entire funny money thing is a total scam? Not just you and me, but the whole world. Can it be, even dimly, imagined the mad scramble for everything tangible before the "money" losses even more purchasing power? Think of the rush to buy gas, wood, generators, food, machinery, guns, and protections of any kind if the entire world realized the simple truth that not a single currency anywhere is backed by anything, convertible into anything, or literally worth anything, other than the strength "legal tender laws" give the currencies.  Drug laws" never stopped people from using drugs, and prohibition didn't stop people from drinking. Can "legal tender laws" prevent discovery of a basic truth? "You can fool all of the people some of the time, some of the people all of the time, but you can't fool all of the people all of the time."                                           

Fifty years ago coins were made of silver, gas was 50 cents a gallon, and Coke was a dime. Now coins are made of copper and nickel, which actually makes two pennies lying on the ground (worth 2.6 cents each) more valuable to you than picking up a dollar bill on the ground?  Gas today is around $3.90 a gallon and a coke is $2. It's the same stuff, it's just that the "money" has gone down in purchasing power like a lead sinker on a fishing line. What would happen if, Americans suddenly realized that their paper dollar would only buy 2% as much as it did when they were a kid? What would happen if, through some shocking newspaper story, important happening, expose', or whatever, it was suddenly thrust upon the entire world that they had been living an illusion that consisted of fraudulent government pronunciations, fake "money," and lies by the bushel? Know what everyone would do?  They'd take their fiat "money" and attempt to get rid of it as quickly as possible, just like the masses decided all at once to sell their over inflated stocks, on the NASDAQ.

I cannot explain why, but at some strange time unknown to anyone, masses of people seem to suddenly all act the same way. This explains "fads" and the sudden popularity of certain TV shows, foods, SUV's, and neighborhoods. For some strange reason, millions of people suddenly do particular things, begin to like specific films cars, foods, clothing, styles, or music. No one can explain this phenomena, but it happens constantly, and we all know it. Why can't everyone suddenly lose faith in their "money?" The populace, fairly quickly, lost faith in O.J. Simpson, Jim and Tammy Baker and recently Charlie Sheen. They stopped loving the NASDAQ because it was overpriced. Is the dollar "overpriced," being it is worth nothing? At least a stock on the NASDAQ signified ownership in something! The buck says it is a "note," but for what?

You need to realize that when a worldwide fraud is being practiced, it simply cannot last forever. Eventually more and more people will seize on the fact that those hundred dollar bills cost the same to print as do the one dollar bills, and all are future insulation to be used in your ceiling. When the realization spreads that most governments are selling their gold as fast as they can, without killing the price further and have already sold all their silver, ever more people will say to themselves, "You know, I think I'd better close that savings account and get some gold and silver." Or, "Gee, my money is becoming more worthless everyday.  I think I'll mortgage my house for thirty years with payments at a fixed rate in dollars and by the time the thirty years is up, my payment may be the same amount of dollars as a cup of coffee. I'll lock up my payments for thirty years at the same number of dollars each month, and no matter how worthless the dollar becomes, I'll still have the same amount in dollars to pay each month." Thirty years ago, the dollar would buy 20 times what it buys now.

What would happen if, millions of people did just as is stated above? For every mortgage, the money supply is increased by that much, causing it to be worth less. The more of anything there is, the less they are worth, be it houses, cheap imports or computers.  Did you really think that Fanny Mae was a savings institution, and that their mortgage money was taken from saver's accounts? Did you think that Freddie Mac had millions of investors that were earning interest from the mortgages that had been put in place?

So once again, what would happen if, a huge light bulb suddenly turned on and the masses of the world's populace decided their currencies were worthless, which they are and decided to get out of them? Gold, silver and everything else would go through the roof in those currencies, but of course not increase in actual value. When prices of anything go up, it's the money going down, not intrinsic values going up. I can see it all now! Everyone trading with gold and silver because they have actual value, and cost time, effort and capital to produce. Millions suddenly deciding to get out of their currencies, mortgaging their homes to the hilt for 30 years at a fixed repayment schedule, and using the resulting "money" to stock up on everything they might need to keep them comfortable and safe for awhile. A lot of canned goods, solar heating system, a new economy car, some acreage maybe, alot of gold and silver, guns, ammo, a strong safe, no other debts, etc. is what I would do. Did you ever stop to think that the majority has never been right?  Just think about that one and then protect your family!


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 26.95


 8.10


Spot prices accurate as of
Thu Dec 14 10:48:44 PST