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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Jimh068 who wrote (23992)	11/5/2009 11:09:19 AM
From: Real Man	1 Recommendation Respond to of 71417

Interesting... So far in 2009-10 the Fed will issue 1.725 Trillion, or about 2 times the monetary base. In 1775 it all started with a lot less, and by 1781 the paper buck lost 2 zeroes. The "paper" experience for the US soon ended. There have been a few paper experiences in the US, none of these ended well, but they all ended with the gold standard. This one is almost 40 years old -g- "The two million was issued by July of the same year, and Congress quickly concluded that more was needed. By the end of 1775, a total of $6,000,000 in Continentals had been issued. Since the total money supply in the Colonies has been estimated at $12 million before the revolution, this reflects a 100% increase in the supply of money within a single year. New issues were made at various times until the close of 1779, when the aggregate amount was $242,000,000. Then the bills had so much depreciated that $100 in specie would purchase $2,600 in paper currency. By the end of 1781, $100 in specie would purchase $16,800 in paper. Laws, penalties, entreaties, could not sustain its credit. It had performed a great work in enabling the colonists, with no tax revenue during the first three years of the war, to fight and battle one of the most powerful nations in Europe. The total loss to the people, by depreciation and failure of redemption, of $200,000,000, operated as a tax, for that depreciation was gradual. Continental bills of credit are now very rare—only in the collections of antiquaries." en.wikipedia.org