Cannabis Prices & The Coming Devaluation of the Dollar

whodare said:

precious metals are never a bubble... not totally correct

when they start rising dramatically your watching the fall of that currency...

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Milhouse said:

Attached is a graph of the historical price of silver for the past 35 years or so. As you can see there have been a few drastic swings in this market also

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medicalgreen said:

This happened only once. When the Hunt brothers decided to try to corner the silver market. That's why it spiked and then declined.

Other than that, it has just risen.

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Milhouse said:

That is very interesting Draztik! I am glad you decided to chime in on this conversation. I have never heard of the 6:1 comparison but that will be something interesting to watch. I will pose this question to you though, with that 6:1 rule, what is saying that gold wont drop in value to realign with silver. Just curious to your thoughts.

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TB Gardens said:

so only a few of us on here are actually competent? stick with the growing MG

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draztik said:

It's a 16:1 ratio. And your question, though it might seem like a simple question it isn't. I'll try to explain. The U.S. dollar was once backed by gold until Nixon tricked the American people and the rest of the world and took the dollar off the gold standard. The entire world used U.S. Dollars as the trade currency because it was backed by gold. When Nixon took the dollar off the gold standard (or should I say Nixon's handlers) He effectively turned the entire worlds monetary system into a fiat monetary system. Now

China has been purchasing gold and silver in record amounts. China is the second largest economy compared to the U.S. and

they own a large amount of our debt and they produce most of our products. There are two major holders of U.S. debt. Number one is the Federal Reserve Bank (Private Bank) Number two is China. In December China and Russia decided to stop using the U.S. Dollar for trade. The dollar reserves have to go somewhere. The dollar is being killed on purpose and there's countries calling for a new trade currency to be backed by gold. If they monetize gold then gold will explode in price. There's about 3-5 Billion ounces of investable gold available.

China is encouraging their citizens to buy gold and silver. Americans are encouraged to sell their gold and silver. Every other store is a we buy gold store. They buy your gold and give you paper. Gold and silver are valued in paper that a private bank prints.

What ever price they are telling you doesn't mean anything. What matters is the buying power of gold and silver. Money is only worth what you think it's worth. What if everyone thought the dollar wasn't worth the paper it was printed on. If you want to understand this better start doing some research. Here's a good youtube channel to get you started http://www.youtube.com/user/WealthCycles

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The first phase was a speculative run-up in oil prices that generated as much as $2 trillion of excess wealth for oil-producing nations, filling the coffers of Sovereign Wealth Funds, especially those that follow Shariah Compliant Finance.
This phase appears to have begun in 2007 and lasted through June 2008.
The rapid run-up in oil prices made the value of OPEC oil in the ground roughly$137 trillion (based on $125/barrel oil) virtually equal to the value of all otherworld financial assets, including every share of stock, every bond, every private company, all government and corporate debt, and the entire world‘s bank deposits. That means that the proven OPEC reserves were valued at almost three times the total market capitalization of every company on the planet traded in all27 global stock markets.
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The second phase appears to have begun in 2008 with a series of bear raids targeting U.S. financial services firms that appeared to be systemically significant.
An initial bear raid against Bear Stearns was successful in forcing the firm to near bankruptcy. It was acquired by JP Morgan Chase and the systemic risk was averted briefly. Similar bear raids were conducted against various other firms during the summer, each ending in an acquisition. The attacks continued until the outright failure of Lehman Brothers in mid-September. This created a system-wide crisis, caused the collapse of the credit markets, and nearly collapsed the global financial system. The bear raids were perpetrated by naked short selling and manipulation of credit default swaps, both of which were virtually unregulated. The short selling was actually enhanced by recent regulatory changes including rescission of the uptick rule and loopholes such as ―the Madoff exemption.‖
While substantial, unusual trading activity can be identified, the source of the bear raids has not been traceable to date due to serious transparency gaps for hedge funds, trading pools, sponsored access, and sovereign wealth funds. What can be demonstrated, however, is that two relatively small broker dealers emerged virtually overnight to trade
―trillions of dollars worth of U.S. blue chip companies. They are the number one traders in all financial companies that collapsed or are now financially supported by the U.S. government. Trading by the firms has grown exponentially while the markets have lost trillions of dollars
in value.‖
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The risk of a Phase Three has quickly emerged, suggesting a potential direct economic attack on the U.S. Treasury and U.S. dollar.
Such an event has already been discussed by finance ministers in major emerging market nations such as China and Russia as well as Iran and the Arab states. A focused effort to collapse the dollar by dumping Treasury bonds has grave implications including the possibility of a downgrading of U.S. debt forcing rapidly rising interest rates and a collapse of the American economy. In short, a bear raid against the U.S. financial system remains possible and may even be likely. Phase Two may have concluded with the brief market rebound that was supported by an emerging regulatory response calling for greater transparency across the board. Efforts including regulation of credit default swaps and proposed oversight of previously unmonitored trading activity, as well as Federal support of systemically vital institutions.
But, we remain left with the critical unanswered questions of who and how?
The recent seizure of $134 billion face value in supposedly counterfeit U.S. Federal Reserve bonds underscores the reality of the economic threat. This may be as significant as the Japanese radio intercepts were before December 1941. Immediate consideration of the issues outlined in this report is vital. Further study is essential and prospective responses must be crafted to address future risks. Finally, there are legitimate questions about the performance of the regulatory regime and Wall Street institutions. Implications that these parties have been complicit or otherwise co-opted cannot be ruled out. Therefore, it is strongly recommended that this study and any task-force response be conducted outside of traditional Washington and Wall Street circles.

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medicalgreen said:

I never said it would be the end of the world, or the economy, so why negate everything, because you have a degree? Argentina is a perfect example of this. Thank you for adding that. Other than that, you sound like a government apologist.

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draztik said:

Whodare I feel the effort to destroy the dollar is from the Federal Reserve Bank themselves, I think China, Russia, and those mentioned in the article that may be dumping the treasuries are last ditch effort by those governments to cut their losses. It's the banking elite that are sucking up all the wealth they tricked these governments by using our good name. These people have been funding both sides of the war for decades.

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draztik said:

The point is the dollar is fake.

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Milhouse said:

What point am i missing? The fact that countries are moving away from using the dollar as their trade currency? No, i understand that. The fact that the dollar is slowly losing its value compared to other currencies? No, i get that too. Am i sold that all of a sudden, the dollar is going to just disappear and some new currency will be adopted? No, i am not sold on that principle yet.

P.S. I do not watch TV news nor is that where i get my information from but thank you for ASSuming that much!

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