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The Last Hurrah?
Under previous administration policies of budget and trade deficits, drugs, free lunch, housing or subsidies for unproductive children, corporations, illegals, seniors and two wars, the Federal Reserve Dollar fell from 140 versus other currencies to 70 in the Summer of 2008.
That made the 2003 to 2007 twin runups in real estate and stocks look real when they were not. Bonds actually outperformed those markets the last three decades.
This led to the Fall 2008 financial panic, which cut the markets in half like the dollar and Solomon’s proposal to the two mothers.
Countries like China and Russia began to stock up on gold and call for baskets of commodities to back currencies. They bartered directly with trade partners and used other currencies than the dollar. America invaded Iraq after Hussein proposed pricing petroleum in Euros and gold rather than dollars.
Mere warning shots across the bow of US government profligacy, while the neoKeynesian crumpet crowd pointed out how impractical it was to replace King dollar and the Special Drawing Rights of the world’s only superpower world reserve currency. Let them spend dollars!
Other than the American Revolution and Civil War, most American citizens did not live through a hyperinflation. They may have the opportunity.
Ask an Argentine, Brazil, Chinese, French, German, Hungarian, Indian, Mexican, Russian or Vietnamese or Zimbabwe immigrant and they know what to do.
If they had property or stocks, they dumped them and fled civil disorder with portable gold coins and jewels hidden in clothes and compartments to America, once land of the brave and home of the free.
To document the Federal Reserve dollar today is worth far less than the 100 copper penny, ounce of silver and 20th ounce of gold standard in 1913, is to show how far away from Constitution and Mint Standards the mighty Federal Reserve and Treasury fell.
In the former days of prosperity, it was treason to adulterate monetary weights and standards.
