Monday, September 04, 2006

The Federal Reserve rebellion

In yesterday's post, I asked what if the current President Bush was assassinated. Today, I ask what if Venezuela only took silver instead of Federal Reserve notes for its oil. David Bond asks that question. Between you and me, the latter would be way more disastrous for the United States than the first.

Now, the first sentence reads, "The following is a true story. It all started happening day after tomorrow:" Now, the two sentences together are a contradiction in terms. If that story started (at the time when he wrote it) in the future, how can it be proven to be true? And that article's date was August 28, exactly one week ago today, and thus, the story started last Wednesday. On Thursday, Free Market News Network ran a 12-minute eRadio program with the same guest about the same topic. But the host started with the phrase "what would happen...?". Today, the financial indicators look normal. So, the supposedly "true story" is really a hypothetical fiction.

But what if the hypothesis were true. This is a real possibility, and the US economy would be in a shockwave. When Venezuela doesn't accept FRN, what if Iran follows suit? And/or Iraq? And/or Mexico? Bond predicts, if only Venezuela does it, silver will rocket to $20/Toz and oil would rise to $100/bbl. Bond wouldn't say about gold, but since gold and silver rise about the same rate, gold would be around $1000/Toz. And all prices would rise accordingly.

But, I will say it again: this is a REAL possibility! And it don't look good for the future of America. The Federal Reserve is pure evil, and it's its fiat paper money which started this mess in the first place. If we don't switch from an inflationary, worthless money, the federal government will be headed for a fall, whether or not Bond's hypothesis will be true. All that matters is the time. If you want to be pro-active, be like Aaron Russo and squash the Federal Reserve . I also want to abolish all "legal tender" laws, and let the free market decide what money do the people want. The government plays no role in money creation and the economy in general.

If what I am proposing came true, the money would be a sound, stable, inflation-proof money, backed in full by precious metal.

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