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Dollars to Donuts, Musical Chairs and Treasury Defaults
Last year the dollar bottomed in March at 70.70 despite the subsequent doubling of Treasury debt in less than a year.
Last Fall, the possibility of US Treasury defaults, the possible shot heard round the world, evoked the conditioned response from credit rating agencies that the AAA rating of US Treasury Securities was still intact.
We all know how accurate rating agencies were with AAA Sub-Prime Mortgages, and how well assurances by the Federal Reserve Chair and Treasury Secretaries worked out, too. Neither Fed nor Treasury have stabilized currencies, economies or markets for some time, as those who demand an audit of the Fed, Mint and Treasury know.
This Fall, the equity markets up +55% and financials up over +100%, the possibility of Treasury defaults finds little serious discussion, so we are throwing our hat into the ring.
Treasury defaults are nothing new to the USA, as students of our 1400+ pages CD, The Gift, know. Continentals and Greenbacks defaulted, causing depression on an economic and personal level until gold and silver specie savings redeemed them. Black market currency expert said the destiny of all paper currencies is to die.
In God We Trust.
Since the USA is no longer on the Constitutional gold and silver standard, how could Treasury defaults be redeemed and what are the probabilities of Treasury IOUs being diminished by deliberate hyperinflation devalued dollars?
Our thoughts on monetary morality may surprise most.
Scriptural authority going back many millennia says the borrower is indentured servant or even slave to the lender.
Scripture also outlaws usury because debts compound faster than economies at a certain point, turning deficit inflation into default deflation.
Scripture further describes penalties including death for adulterating monetary measures, standards and weights.
