Saturday Evening’s Conversation
January 10, 2012 in Finance
Today’s article was supposed to be about how to prepare for the new economic system. I’ve postponed that article a day so I can write about what I learned Saturday evening.
One of the reasons a new economic system is necessary is because those who control the current system can easily manipulate it. They often use worldwide chaos for this purpose.
Therefore, as we move into the new system, those who benefit from the old one may resort to chaos to maintain control. This could cause the new system to fail so the old one can remain in place or it could create enough instability for the current power holders to gain control of the new system.
I learned more about how this works during a dinner conversation Saturday evening.
Those investors would then wait for the war to end, the situation to stabilize, and the dinar to revalue.
When the dinar revalues, those who purchased it for next to nothing can then sell it for much more and make a tidy little profit.
My guests claimed the revaluing started when the American military left Iraq. The absence of an outside military presence is the first step to revaluing the currency.
I did a little research and found indicators that this happened just as my guests claimed. In fact, someone made sure it happened just this way.
At the beginning of the war, planes full of palletized American dollars were shipped to Iraq. This flooding of the country with dollars devalued the dinar.
(When a currency devalues, this creates inflation. Things cost more. If the poor and middle class receive raises in income, it is usually several months after the price increases. In addition, the income increases are not as large as the price increases. Obviously, this reduces the standard of living for the poor and middle class.)
At one time, government auditors thought the money was stolen. This increased the perspective of instability for the dinar. Its value continued to drop.
Now, that it is time to make the profit, things are changing.
It appears this was someone’s plan from the beginning.
First, flood the country with American dollars to destabilize the dinar and report theft of those dollars to disrupt things further. Then, make sure those dollars end up in the new Iraqi banking system as a stabilizing force at the conclusion of the war.
Who did this?
We don’t know for sure.
The source of the money was a depositor with the Federal Reserve. Privacy laws prevent the Fed from disclosing their customer.
Of course, it is impossible to prove this was the only purpose for the Iraqi war and I’m not claiming that it was.
I’m writing about this to show how chaos allows a fiat currency to be manipulated by those in power to create wealth for them at the expense of the common man.
A gold-backed currency makes this more difficult to do.
I’ll focus on preparing for that change tomorrow.