Fiat Currency Is A Ponzi Scheme!

Iran is trying to start an exchange where petroleum can be sold in currencies other than the U.S. dollar. The leaders of Iran know that if they don't acquire nuclear weapons, they're going to meet the same fate as Saddam Hussein.

Read this article for more top-secret information: http://globalresearch.ca/articles/CLA410A.html

 

Thanks for confirming that you're relying on sources that are badly misinforming you.
http://rationalwiki.org/wiki/Globalresearch.ca

Never mind that the link is self-refuting. It's from 2004, predicting "Pentagon action" against Iran in 2005.

Ten years later, NOTHING HAS HAPPENED.

 

http://en.wikipedia.org/wiki/Iranian_oil_bourse

 

That link refutes your argument as well. You claim the Iranians need nukes to defend themselves so they can create their own oil bourse.

Except the Iranians created the bourse in 2008, still don't have nukes, AND NOTHING HAPPENED.

Can we get back to fiat currency now?

 

Read up on it. How many countries are currently selling petroleum products on Iran's exchange? None. It's because they haven't officially launched it off yet. When they do, I believe Russia will be their first big customer.

 

The bourse has been open for years, but Iran has difficulty attracting customers.
http://www.defenddemocracy.org/media-hit/petrochemical-contracts-to-be-offered-in-irans-oil-bourse/

Why? Because they have difficulty guaranteeing payment.

Your sources are misinforming you.

 

Just wait until Russia signs up in the near future. Other large oil exporters will follow. If Saudi Arabia follows their lead, the U.S. dollar will become useless paper and our economy will crumble apart before our very eyes. This can happen during the most prosperous times. Obviously, the U.S. dollar does not represent a share of the U.S. economy. It's actually the other way around. The size of our economy is based on our ability to push our useless paper, exactly like a Pump and Dump scheme.

 

Okay. Point is, your previous points (about Iran needing a nuke so it can open an oil bourse to end the Petrodollar) is completely bogus.

Uh-huh.

#1, why would Sunni Saudi Arabia abandon the dollar in order to use a bourse run by Shiite Iran?

#2, you WAY overstate the impact of the petrodollar on the dollar. Have the German or French economies collapsed despite not being the main petro currency? No. The dollar is the main oil currency because of its strength and stability, not because the petrodollar system is propping it up.

 

If you open your eyes you'll see the pattern here. Unfortunately, most Americans refuse to believe the truth because they're in a state of denial. They want to believe that there's a bright future ahead. I regret to inform you that this simply isn't the case.

[video=youtube;wha9lTKN7Zg]https://www.youtube.com/watch?v=wha9lTKN7Zg[/video]

Russia announced last year that they were going to completely pull the plug on the U.S. dollar sometime in the near future. I'm guessing it's probably going to happen next year. When Russia screws us over, all hell is going to break loose.

[video=youtube;I5jmOwBf_qQ]https://www.youtube.com/watch?v=I5jmOwBf_qQ[/video]

 

Uh... the Russian ruble is a basket case, because it's dependent on oil and subject to the political whims of Putin. Suggesting the ruble is a credible alternative to the dollar is laughable.

The ruble has crashed vs. the dollar in the last year:
http://www.xe.com/currencycharts/?from=RUB&to=USD&view=1Y

The world's oil suppliers are not going to switch to the ruble any time soon.

 

Again, more wishful thinking. Our country's days of prosperity are numbered unless World War 3 breaks out and we're somehow able to stop our adversaries from abandoning the U.S. dollar.

 

The only thing you've posted to support your claim is easily refutable nonsense. If our "adversaries" could persuade the world to abandon the dollar for another currency, they would have done so. They have not, for reasons I've explained.

If Russia couldn't pull it off when oil was at $100 a barrel, they certainly can't pull it off when oil is at $50 a barrel.

 

Every FIAT money in human history has failed, but somehow we're supposed to believe this time it will be different.

It's truly amazing how easy it is to con people into believing something so illogical and so clearly at odds with historical outcomes.

 

What do you mean there is no finite limit to wealth?

What do you mean by this?

Wow. What? Why would physical wealth be "destroyed" simply by changing from a FIAT money to a commodity-money? I don't see the connection at all.

And USD has value in a similar context? No, it does not.

And I have yet to see a logical argument in favor of FIAT money, especially considering its long and well-established history of repeated and epic failure.

Yet gold and silver still maintain their value after thousands of years in circulation.

Seems like the evidence trumps your theory.

 

no it could't
and no it hasn't

 

Well, it depends on how you look at it. A Ponzi Scheme involves a bunch of "suckers" buying into a supposedly lucrative investment that doesn't really exist. As long as there are enough new suckers buying into it, the perpetrators are able to steal from the existing pool of money without anybody noticing. The scam falls apart when they're not able to generate enough new demand and all of the old investors start asking for their money back. Because there is no money to pay back, the investors realize that they've been duped.

This definition could apply to our gold reserves.

http://www.globalresearch.ca/federa...have-any-more-gold-paul-craig-roberts/5365933

[video=youtube;jPslTZAqZPc]https://www.youtube.com/watch?v=jPslTZAqZPc[/video]

 

You sound just like the people who thought the Titanic was "unsinkable". Obviously, their theory was proven wrong.

[video=youtube;V1EM8s0gxyI]https://www.youtube.com/watch?v=V1EM8s0gxyI[/video]

 

Perhaps what you meant to say is that the financial system is a sham.

 

Supply and demand. An increase in demand will increase the value of precious metals.

 

I meant to say Pump and Dump scheme but sham works just as well.

 

what is money

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.[1][2][3] The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, sometimes, a standard of deferred payment.[4][5] Any item or verifiable record that fulfills these functions can be considered money.

gold can function as money
but it is not money
if you are confused
try buying a hamburger with some gold
try buying anything with gold
the seller will figure out how much money (dollars) your gold is worth
and likely charge you a premium
because gold is NOT money

gold has value
and that value is defined by how much money it is worth

if suddenly all the gold in the world disappeared
money would go on fulfilling its function as a medium of exchange

if suddenly an enormous new supply of gold were discovered
money would continue unaffected
the only change being the value of gold as priced in money

gold is not money
it can and has functioned as money
but itself is not inherently money

it is absolutely possible for money to become compromised
and the attraction of gold is that gold backed money eliminates that risk
for those that are apprehensive

but nothing eliminates risk without cost
and the costs of a gold standard are enormous
though not obvious

 

[video=youtube;QmZ36uABULY]https://www.youtube.com/watch?v=QmZ36uABULY[/video]

 

yeah
that is the known risk

the known risk of the gold standard



Disadvantages

Gold prices (US$ per troy ounce) from 1914, in nominal US$ and inflation adjusted US$.
The unequal distribution of gold deposits makes the gold standard more advantageous for those countries that produce gold.[64] In 2010 the largest producers of gold, in order, were China, Australia, U.S., South Africa and Russia.[65] The country with the largest reserves is Australia.[66]
The gold standard acts as a limit on economic growth. "As an economy's productive capacity grows, then so should its money supply. Because a gold standard requires that money be backed in the metal, then the scarcity of the metal constrains the ability of the economy to produce more capital and grow."[67]
Mainstream economists believe that economic recessions can be largely mitigated by increasing the money supply during economic downturns.[68] A gold standard means that the money supply would be determined by the gold supply and hence monetary policy could no longer be used to stabilize the economy.[69] The gold standard is often blamed for prolonging the Great Depression, as under the gold standard, central banks could not expand credit at a fast enough rate to offset deflationary forces.[70]
Although the gold standard brings long-run price stability, it is historically associated with high short-run price volatility.[54][71] It has been argued by Schwartz, among others, that instability in short-term price levels can lead to financial instability as lenders and borrowers become uncertain about the value of debt.[71]
Deflation punishes debtors.[72][73] Real debt burdens therefore rise, causing borrowers to cut spending to service their debts or to default. Lenders become wealthier, but may choose to save some of the additional wealth, reducing GDP.[74]
The money supply would essentially be determined by the rate of gold production. When gold stocks increase more rapidly than the economy, there is inflation and the reverse is also true.[54][75] The consensus view is that the gold standard contributed to the severity and length of the Great Depression.[76][77]
Hamilton contended that the gold standard is susceptible to speculative attacks when a government's financial position appears weak. Conversely, this threat discourages governments from engaging in risky policy (see moral hazard). For example, the U.S. was forced to contract the money supply and raise interest rates in September 1931 to defend the dollar after speculators forced the UK off the gold standard.[77][78][79][80]
Devaluing a currency under a gold standard would generally produce sharper changes than the smooth declines seen in fiat currencies, depending on the method of devaluation.[81]
Most economists favor a low, positive rate of inflation of around 2%. This reflects fear of deflationary shocks and the belief that active monetary policy can dampen fluctuations in output and unemployment. Inflation gives them room to tighten policy without inducing deflation.[82]
A gold standard provides practical constraints against the measures that central banks might otherwise use to respond to economic crises.[83] Creation of new money reduces interest rates and thereby increases demand for new lower cost debt, raising the demand for money.[84]

 

but let me ask you a practical question greg

we know that world population has grown by 4x over the last 100 years
also that the relative wealth of each person has dramatically increased
and that the gold supply has grown not much

so in your view
how is the escalating economic and population growth able to be supported by fixed and unchanging supply of money?