History repeats. (Or it rhymes, depending upon your option of words.)
Throughout history, there has actually been an extraordinary propensity for federal governments (and cultures) to follow similar courses. Even regarding periods countless years apart, we see people behaving in much the same method, over and over. This is particularly real when it comes to “wrong relocations.” Over and over, individuals and their governments make the very same errors, seemingly never learning from past errors.
Why should this be? In truth, how is this even possible? Definitely, if a federal government in the 21st century were to make egregiously bad decisions, they are unlikely to be the very same bad decisions that were made in, state, Rome, in the 4th century.
The reason, in two simple words, is “humanity.” Humanity remains the very same throughout time. 2 thousand years ago, governments were usually made up of egotistical, self-centred dictatorial types, who were far more worried with their own power than in the basic well-being of their individuals. Today, politics remains a magnet for such people. They for that reason will go back to type when confronted with the really exact same issues.
Should we cut spending to provide the taxpayers a break? No, we should increase tax and give more to ourselves.
If we invest more than we receive in taxes, should we cut down our expenditures, or should we enter into financial obligation? We’ll go into debt, and put the debt on the shoulders of the taxpayers.
If the debt grows to be beyond what can ever be repaid, should we cut down expenditures, or should we permit the economy to collapse? Well, we’re sorry to see the economy collapse, however rather than reject ourselves, get out the fiddle and let Rome burn.
The denarius was the coin of the realm throughout the centuries when Rome was a republic. Although the gold solidus was utilized as a storage of wealth, the silver denarius was equivalent in worth to a day’s wages for a typical labourer and, as such, was more useful as the main unit of exchange. Throughout this time, it was a steady currency. Nevertheless, as Rome developed into an empire, all that conquest in foreign lands became very costly and it was decided that one method to balance out such expenses was to decrease the value of the denarius. Each succeeding emperor added a bit more base metal than the previous one and, by the time of Diocletian, there was no silver in the coin at all, only bronze.
Throughout this same period, Rome experienced significant inflation– a predictable outcome when the coin of the realm is degraded. The population was in decline as well.
If this sounds familiar, it should. Modern governments tend to make exactly the exact same mistakes with regard to currencies. Initially, empire-building drains pipes the coffers to the point that maintaining a sound economy is no longer possible, then successive “emperors” make the decision to debase the currency in an effort to keep the party going a bit longer.
Naturally, “inflating the problem away” never in fact works. Just as Rome entered into an irreversible decline, so the empire these days is self-destructing, due, in part, to financial debasement.
So, is the contemporary circumstance identical to fourth-century Rome? Well, not quite. It’s probably safe to state that, had Diocletian figured out that the coin of the world might be gotten rid of completely; that is, had he understood he might replace it with paper notes with his image on them, he may well have actually done so. Certainly, modern “emperors” have actually first created redeemable silver certificates, then subsequently supplanted those certificates with notes that were backed by nothing. (At least Diocletian provided bronze coins, whose value, whilst little, was at least genuine.)
But the modern-day monetary magician has one more bunny delegated take out of the hat.
Those who believe that the dollar (in addition to the euro and other fiat currencies) is on its last legs are inclined to say, “At least, after the collapse of the dollar, there will be no option but to go back to a gold standard. That will put an end to any inflation, plus put the world back on a strong financial footing.” However this may be wishful thinking.
The U.S. Federal Reserve stays unfaltering in its position that precious metals are a barbarous relic. Certainly, from their perspective, this is true. After all, it’s tough to fiddle with the worth of gold, as it retains its intrinsic value. 2 thousand years back, the acquiring power of an ounce of gold was roughly what it is today. And, whilst the typical individual may prefer the stability of precious metals, governments have a strong dislike for the constraints that this put on them. Governments choose to be able to fiddle with the value of currency for their own functions just as the emperors of old did.
What I think is most likely to happen as the dollar collapses is that the Federal Reserve will “come to the rescue” with a brand-new currency. Not a paper one, that has obvious problems, but one that “solves all the issues of paper currency.” The new currency may well be more of a credit card– to be used for literally all monetary deals. And the electronic currency will have an added function (at least from the point of view of the federal government). Considering that it’s electronic, every time the user purchases so much as a candy bar, the purchase is signed up in the government data centre. No monetary deal of any kind can be made, other than through the use of the card. (This latter requirement will no doubt be validated as being essential to control terrorism.)
And the electronic dollar might just be the very first of its kind. It must not be unexpected if other federal governments see the benefit of an electronic currency as their sole form of currency and develop their own.
So, does this mean that precious metals genuinely may become the barbarous relic, as federal governments tell us? Not always. After all, many nations have taken a painful hit as an outcome of the dollar being the world’s default currency. When the dollar crashes, they will take a further hit. They will not want to recreate that problem by enabling the U.S. to merely begin dealing in a new “ultra-fiat” currency.
Much of the world’s federal governments are stocking up on yellow metal like never ever in the past. It stays to be seen whether they, too, will produce their own electronic currencies, whether they will change to gold-backed currencies, or whether they will attempt a combination of the two.
If, in truth, electronic currency becomes the standard, of one thing we can be sure: The emperors will devalue it, as needed. It will, ultimately, stop working and, maybe sooner, maybe later on, the world will return to the barbarous antique as it has done many times for the last 5,000 years. The only unpredictability will be when.
Editor’s Note: Sadly most people have no idea what really takes place when a currency collapses, not to mention how to prepare …
We think everybody ought to own some physical gold. Gold is the supreme type of wealth insurance. It’s preserved wealth through every kind of crisis you can possibly imagine. It will maintain wealth throughout the next crisis, too.
However if you want to be genuinely “crisis-proof” there’s more to do …
How will you secure yourself in case of a crisis? New york city Times best-selling author Doug Casey and his team just released a video that will reveal you exactly how. Click on this link to see it now.