Friday, August 23, 2013

New World Currency

The fall of the Roman empire is blamed in part to the debasement of currency, accomplished by the clipping of their gold, silver and bronze coins.

Until 1964, a U.S. paper dollar could be exchanged for a silver dollar. U.S. coins lost their 90% silver content in 1964 except for the Eisenhower 40% silver dollar which was minted until 1976. A 90% silver dollar today is worth more than $17.

Having lost its silver backing, today's dollar is fiat, and as such its fate is to inflate itself out of existence. Furthermore, the dollar today is based on debt. The craziness of the fractional reserve banking system allows that the more money which is lent, the more money there is to lend. The expansion of the money supply has been accelerated by the global QE policies put in place after the 2008 crash, and for the first time in history, all currencies of the world are undergoing this fate simultaneously.

The inevitable outcome will be some form of world currency with a return to gold and/or silver backing. (Not necessarily a single worldwide currency, but if separate currencies are maintained they will all have the same backing, making them essentially equivalent.)


When will this happen?

Revelation 6:6 tells us that a loaf of bread will cost a day's wages, and we are a long way from that. But at the end of a fiat currency's lifetime there is an acceleration of inflation so it may not be that far off!

I came across this article which links the 7 year Biblical Shemitah cycle to the September 2001 and September 2008 crashes. The Shemitah cycle comes from Deuteronomy 15:

At the end of every seven years thou shalt make a release.
And this is the manner of the release: Every creditor that lendeth ought unto his neighbour shall release it; he shall not exact it of his neighbour, or of his brother; because it is called the Lord's release.

It would make sense that the end of the dollar would occur on a Shemitah cycle since it would be associated with a massive release of debt.

The next Shemitah cycle is September 13, 2015. It is an interesting date - let's look at the planets.

First recall as we saw here, that when the dollar was born with the Federal Reserve Act of December 23, 1913, Neptune was opposite Jupiter.
12/23/1913: Dollar Natal

On the next Shemitah cycle, September 13, 2015, there will be another Neptune-Jupiter opposition squaring Saturn, which is also trine Venus and Mars. Jupiter will be at the dollar's 72° harmonic, 144° from its natal position seen above.
9/13/2015
Maybe this is too soon for a total collapse of the current monetary system, I don't know, but it should be a very important time for the dollar none the less.

8/24/13 Addendum

The planetary midpoint between the 2 charts above, that is, the Neptune-Jupiter opposition with Neptune at the dollar's 72° harmonic in Scorpio, occurred in 1964, the final year of 90% silver coinage.
10/3/1964

6 comments:

  1. Hi Platy
    Something different and interesting
    Thanks
    Bob Collett

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  2. You mention that the end of a currency such as with the Roman Empire an hyper-inflation effectively wipes out the value. Any credit event however similar to 2008 - or any others in history - that may occur around 9/15/2015 would be and has always been a deflationary event as this is the definition of a credit collapse. So how could the Dollar be inflated away when these events have actually strengthened it. This happens because all of the claims against the Dollar (debt) get washed away - as in your biblical principle?

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    Replies
    1. We should see the gov't attempting to defend the dollar but they won't be able to. An additional problem is the loss of petrodollar status, meaning that the massive dollar reserves that have been held all over the world are flowing back to the states.

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  3. Hey Platy.. a few random thoughts for you...

    re: longer term picture.

    I am very much a follower of Armstrong, and certainly regard the 2015.75 era as important. The only issue is whether its an equity market low..or high.

    In my view..when the next bounce occurs (probably starting around the next FOMC of Sept'18) what will be critical, is if it puts in a lower high <1709, or just keeps on going. If its the latter, I'd resign myself to renewed upside (broadly) for another two years.

    Otherwise..a lower high..and there is a chance for sp'1400s.. and perhaps in 2014...a lower high on the bigger monthly charts..and collapse wave into 2015.
    --

    As I'm sure you know, Armstrong is open to the idea of Dow 40k - in the late 2015 period, which of course right now seems nothing other than 'crazy talk'. Yet, the idea of sp'1700s was considered 'crazy talk' by many just last summer. A mere one year ago..when sp'1200s.

    An important few weeks ahead, could help define the next few years.

    *Ohh, and as for the dollar...it will surely be the last of the big currencies standing. Whether Yen goes first...or Euro... King dollar will be the last main one. The 'dollar doomers' are still somehow refusing to acknowledge capital flows from the EU/Asia, and that will bid up the dollar..along with all $ based assets.

    --
    Have a good..3 day weekend!

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