NEVER SEEN ANYTHING LIKE THIS
By Doug Casey
Aristotle in the Fourth Century B.C. gave the five characteristics of anything that can be used as good, reliable money. It has to be durable, which is why we don't use wheat as money. It has to be divisible, which is why we don’t use artwork as money. You can't divide the Mona Lisa into pieces. It has to be convenient, which is why we don't use lead as money. It takes too much to be of value. It has to be consistent, which is why we don’t use real estate as money. Every piece is different from every other. Last, it has to have value in and of itself, which is why we shouldn't use paper as money.
When you work and produce you're paid in dollars, and if you want to get ahead in life you save those dollars. The problem is, after you've saved dollars – what happens if those dollars lose value overnight? Everything you've worked and planned for vanishes with the reduced value of dollars. This has happened numerous times in other countries with other currencies.
The problem with the dollar is it's the unsecured liability of the U.S. government, which is bankrupt. In the years to come that's going to become obvious, with catastrophic consequences for the average American. How can you get ahead in the world when you have to save a depreciating asset?
Now that's the bad news, but the good news is that during a time of financial chaos most of the real wealth in the world will still exist. It's just going to change ownership. You want to be one of the people on the winning side of that equation.