In truth, we’d all be a lot better off if Federal Reserve chairman, Ben Bernanke, did nothing but fiddle. Unfortunately, this middle-aged cuss is dead set on implementing more disastrous economic policies with the intent on devaluing the American dollar.
“Surely you jest!” cry the masses. Why would our beloved chairman want to drive down the value of our vaunted national currency? The quick rejoinder: “The scoundrels at Holistic Survival must be lying to us. Mr. Bernanke is a good and honorable man.” Well, he may be all that but he’s also wrong-headed thinker. Read the following excerpt from a speech by the renowned fiddler to the National Economists Club in 2002, which provides a clear insight into the way this man thinks.
“Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.”
There you have it. Under the Bernanke model, a devaluation of the dollar, followed by a false rise in the price of goods and services, is a good thing. Now might be a good time to transition your cash holdings out of the United States dollar (R.I.P) and into other currencies like Australia, New Zealand, Norway, Brazil, Mexico, Sweden, and Canada – all of which pay higher interest rates when you buy and hold a CD in their local currency.
Sorry, but for investors, it no longer makes sense to have the dollar as any part of your portfolio. Welcome to the revolution. You missed it. It’s already over and the bad guys won. Get you money out of town before they figure out you still have some and confiscate it.
The Holistic Survival Team
Flickr / thisisbossi
