Paper currencies are mortal
 

Paper Currencies Are Mortal

Voltaire observed centuries ago that "all fiat currencies eventually revert back to their intrinsic value-zero." :D

I'm confident that the American Dollar will cease to exist in its current form within a decade (probably sooner rather than later). John Williams of ShadowStats believes that the American Dollar will begin to hyper-inflate in 2014.

Currently, I'm trying to figure out whether the other fiat currencies will implode along with the USD (since all fiat currencies are either implicitly or explicitly tied to the USD). Specifically, I'm trying to figure out whether the CND will implode. My biggest concern is that our CND is backed predominately by USD paper assets (IRRC >80% of our reserves are USD based) and our government sold most of our gold in the '80s. ATM, I believe that there is a very good chance that all currencies will implode in some fashion along with the USD but John Williams believes that the stronger fiat currencies (Swiss Franc, AUD, CAD) will hold their value better relative to the USD.

One of the most interesting things going on right now is that the SCO (Shanghai Cooperation Organization) countries are gobbling up the world's supply of gold. I believe they are accumulating as much gold as possible to back their currencies with gold when the reboot takes place. John Butler's new book "The Golden Revolution" goes into great detail about this.

Thanks for the wonderful post! I'm also trying to figure out what would happen to the HKD (Hong Kong Dollar) should the U.S. dollar collapse. I have basically come to the same conclusion that you have.

I'm gonna ask you for permission to repost your post on my blog. I think my viewers can really benefit from your informative response. So, with your permission, I will repost it on my blog. Please let me know. Thanks.

Please do, we need to get as many people informed as possible about the financial maelstroms ahead. The more people that are prepared, the better off all of us will be.

As for the HKD, I think it's in a very interesting situation. IRRC the HKD is pegged to the USD and at present, speculators are pouring (albeit mistakenly) into the USD and US T-bills. This has the effect of putting upward pressure on all currencies pegged to the USD (ie. HKD) but when the market's appetite for USD/US T-bills eventually sours, the HK gov't has the option of de-pegging the HKD and allow it to appreciate against the USD. In sum, I think the HKD has the potential to benefit on both the upside and the downside.

Live long and prosper. :D

SILVERBULL's posts and theories are strangely similar to LIKEABOSS's, who happens to be an avid investor in silver. Interesting..