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Re: This Is BAD... How it Will Unfold. 

By: Decomposed in 6TH POPE | Recommend this post (1)
Sun, 25 Dec 22 6:28 AM | 47 view(s)
Boardmark this board | 6th Edition Pope Board 		Msg. 38572 of 58634
(This msg. is a reply to 38571 by Decomposed)
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When West Germany merged with East Germany, it created a fiscal problem. The two countries used different currencies which needed to be merged to unify the country. While the West German mark was very strong, the East German mark was a severely debased Communist catastrophe. East Germany had a strong underground economy consisting mostly of barter, and some East Germans had therefore not bothered to spend their official but trivial wages in decades.

The way that Germany merged the two currencies was to create a New Mark and to give everyone a year to buy New Marks with their old ones AT PARITY. In other words, 1 to 1. The East German monies many had deemed too worthless to be worth spending were suddenly just as good as the formerly valuable West's.

This was terribly unfair, of course. West German families lost fortunes. Some East Germans were suddenly rich beyond their wildest dreams simply because they'd kept millions in crappy money others didn't want.

Germany's experience mirrors what I think will happen in the United States. Oh, not exactly... there is no "strong" currency here, not anymore. But there will be a "new" dollar, and Americans will be given a short time in which to exchange their old dollars for the new ones. After that, the old dollar will be useless. Nobody will want it. When the announcement is made, vast quantities of dollars held abroad will be repatriated, so massive price inflation will result for those who were reluctant to do the exchange or who were thinking of spending it instead of exchanging it.

I think the new dollar will be a digital currency completely under Federal Reserve control. That will facilitate what happens next:

Soon after the currency exchange deadline (mimicking what FDR did after the deadline he gave Americans to sell back their physical gold), the government will deem it unfair for some Americans to have "more than they need" while others do not have enough. It will dictate that government services are for the "general welfare" and must be preserved. It will dole out lots of "free stuff" but put everyone onto a tight budget... possibly even the same budget regardless of their jobs or how much of the new currency they supposedly own. Effectively, it will assume ownership of Americans' individual wealth. I don't know what will be done to foreigners who swapped old dollars for new. My guess is that they will get screwed, receiving nothing for the currency they returned except digital New Dollars that they aren't allowed to spend.

That's how I see this unfolding, and it will happen BEFORE the actual dollar failure.




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Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months


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The above is a reply to the following message:
Re: This Is BAD...
By: Decomposed in 6TH POPE
Sun, 25 Dec 22 5:48 AM 		Msg. 38571 of 58634

Zimbler0:

Re: “'They' do NOT want people to understand just how badly 'They' are screwing us.”Without stating what I expect them to find, I've asked three others... individuals who I respect... to find a line chart of U.S. national debt on the internet and to add a "line of best fit" with which to forecast the future. The question I want answered is "How long can we keep going this way?"

Two have very strong math skills - one being my son and the other a student specializing in machine learning. The third is an Oracle administrator I used to work with. I'm hoping they accept the challenge. If they do, I'll let you guys know what they think.

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