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by Mac Slavo: Watch
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If you’ve
been watching U.S. financial markets the last few weeks you may
have come to the conclusion that something is amiss and that there
exists a major disconnect between what’s happening on Wall
Street and what average Americans are experiencing on Main Street.
While analysts
and experts point to the stock market as a sign of economic stability,
today’s massive downswing should make it clear that the system
is anything but stable.
The economy,
the financial markets, and the U.S. monetary system are in uncharted
waters, and as was noted yesterday after the Fed’s FOMC announcement,
there is no
way out of this mess.
The Federal
Reserve and the US Treasury have taken it upon themselves to save
us, but their plan seems to be disintegrating right before our eyes.
According to
former Congressman Ron Paul, it could get much worse with far reaching
ramifications across the whole of the U.S. and global economies.
At this rate, if we continue on our current trajectory of monetary
expansion, it is only a matter of time before the US dollar buckles.
And when it does, it’s going to create widespread disturbances
in pricing and valuation models across the entire sphere of investments,
goods and services.
The long-term
is something you can get a handle on.The short-term…
I was never very good on short-term, whether it’s the stock
market or what government will do. It’s just all over the
place.I think
if you look at the record of the value of the dollar since the
Fed’s been in existence, we have about a 2 cent dollar. You
know, gold used to be $20 an ounce, so I would say the record
is rather clear on the side of commodity money.History
is on our side… 6,000 years of history shows that it maintains
value and paper always self destructs.I would
say, long-term, as long as we have excessive spending and excessive
computerized money, you’re going to see gold go up…
and it [gold] could go to infinity because the dollar could collapse
totally.
Video from
The Daily Sheeple
via Infowars:
To be clear,
Ron Paul isn’t just talking about the price of gold going to
infinity.
In the event
of a collapse of the U.S. dollar we’re going to see the price
of all commodities go to infinity. Any physical asset of actual
value is going to go to ‘infinity’ as it relates to the
US dollar. Zimbabwe is a recent example, where the price of a loaf
of bread literally reached over a trillion ‘dollars,’
when just a few years before it cost a couple Zimbabwe bucks.
When the system
collapses, commodities
become money. It’s as simple as that.
This is why
precious metals have been
in such high
demand lately. This is why emergency food distributors ran
out of food recently. And this is why the price of ammunition
and rifles has gone through the roof.
It is an issue
of confidence.
Confidence
in the fair functioning of financial markets. Confidence in our
central bank’s directives to maintain a stable currency. Confidence
that our political system will operate within the rule of law.
It should be
obvious by recent market gyrations and panic buying of certain commodity
goods that confidence among the American public is being lost.
Once it takes
hold, and disruptions
to our system of commerce become evident to the general public,
we will witness a never before seen panic from sea to shining sea
as Americans fight for anything worth something.
It’s coming,
whether you believe it or not. And it’s better to be a year,
month or day early, then a minute late.
June
22, 2013
Mac
Slavo [send him mail] is a
small business owner and independent investor.
Copyright
© 2013 Mac Slavo
This article originally appeared on: Lew Rockwell