Click here for Martin Armstrong’s latest blog post entitled, It’s Always a Question of Time, dated February 26, 2013. This post is about Martin’s thoughts on an eventual two-tier monetary system.
groovygirl says:
Groovgirl agrees with Martin’s thoughts on a two-tier monetary system. She also believes that there are 3 shifts to this move in the US:
- The collapse of the US dollar and/or US debt, that requires a “revalue” of the dollar.
- A new national-only “dollar” that will be either inflationary or deflationary in nature.
- The new “floating” international currency that will be for international trade, particularly petro and energy. This will be the opposite monetary pressure than the national dollar.
Physical gold and silver will help see your changing fiat currency retain its value during this process. The bullet points above explain why gg thinks it is very hard to figure out if we will err on the side of inflation or deflation before and after this “revalue” and new currency. It is very possible that in the next 10 years that the deflationists, stagflationists, and hyperinflationists will all have an opportunity to be correct in their forecast.
What I am saying is that it is highly unlikely that the powers that be will get it right the first time and we will have ups and downs in the value of these new currencies for a while, possibly years. This could be a reason to hold onto some gold and silver even after it reaches its “high” in the cycle. We will have to watch this carefully.
Side note: gg thinks you can all see that an extra currency in international trade will have fees attached to it, a special system to track taxes, maybe even an international tax of some kind, and probably will be digital. The US will then get to feel the same pain that everyone else on the globe has felt with the petro-dollar for the last 40 years.
This new system will have the effect of stopping the decline in US economic activity, only to the extent that it will create stability. But the days of cheap auto gas and energy are gone forever, and it has little to do with Peak Oil. It has to do with a debt collapse, the destruction of the petro-dollar, and the fall of the American Empire.
