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Aristotle’s Take on the U.S. Dollar
Not many people know this… but in addition to being a famous philosopher and teacher, Aristotle was also an armchair economist.During his life – several millennia before the birth of Christ – Aristotle laid out the principles of what he considered “good money.”
He said all good money was…
1. Divisible – You could easily divide it into smaller sums, to make change.
2. Durable – It lasts a long time.
3. Convenient – You can easily carry it around with you.
4.Consistent – It always has the same value.
5. Valuable – It’s useful in and of itself.
It’s pretty easy to see where the U.S. dollar fails here.
…our modern-day paper currency has absolutely no value at all.
It’s not good for anything. It’s not used for anything. Without the U.S. government’s say-so, it would NOT be worth anything.
Good thing Aristotle didn’t live to see it. Or he would be absolutely appalled at how money has “evolved.”
The Cash in Your Pocket Isn’t Even Real “Money”
Our currency has gotten so diluted that it doesn’t even deserve to be called real money.
“Not only has our currency become degraded… but the language we use to describe it has become degraded,” said Doug Casey at the opening day of the Global Currency Expo.
In fact, 99% of people don’t even know the difference between money and currency. They think it’s the same thing.
In reality…
Money is a medium of exchange and a store of value.
While currency is the government’s paper substitute for money.
Or more precisely it’s the unbacked liability of the government… or a “fantasy based on trust” as EverBank’s President Frank Trotter said yesterday.
And let’s face it. When was the last time the government gave you a reason to trust them with your money?
After all, the lethal combination of the Fed-Heads and politicians have already spent us into what Doug Casey calls the “Next Great Depression.”
Top Two Speculations During the Next Great Depression
According to Doug Casey, the single greatest event since the Industrial Revolution is about to take over the markets.
He calls it an “even Greater Depression” – a time when the vast majority of Americans will see their standard of living dramatically drop, thanks to out-of-control inflation.
In this type of environment you can’t save and you can’t invest. You’ll be forced to speculate.
But it’s easier than you think.
According to Doug, speculating over the next decade simply means paying attention to where the U.S. government is causing distortions in the market – and then putting yourself in the best position to profit off them.
For example, the government is all but guaranteeing that U.S. Treasury bonds will sink in value.
- They are forcing inflation, which will wipe out bond returns.
- The Fed is gearing up to raise rates, which will push all bond prices lower.
- Then there’s the currency risk – when you get your interest back in 5 or 10 years – how much will those dollars really be worth?
That’s what I’d call a triple threat.
And it’s why Doug recommends shorting U.S. Treasuries immediately. It’s his #1 speculation for the next decade.
Also, Doug recommends making the broken real estate market work in your favor.
He has personally “borrowed up to gills” on his home in Aspen.
Why not? He’s happy to use the extra money to pay back the bank at a fixed interest rate.
(And as he says…once his 10-year mortgage is due, the dollar will be worth a lot less anyway!)
He recommends you do the same – take out a long-term fixed term mortgage in U.S. dollars. It’s actually a great way to speculate on the dollar’s fall over the next decade.
And that’s just two of Doug’s five ideal speculations for the next 10 years.
During his 45 minute speech yesterday, he also revealed…
- The three best places to buy property around the world.
- The only two ways a person can truly become wealthy.
- Why deflation can be BETTER than inflation… and why we’re heading for 25% inflation in the next 10 years.
- The single greatest risk to your wealth (Hint: it’s NOT market risk.)
- Why gold could go to $5,000… and then eventually become our next money.
- The only kind of debt you ever want to own.
(Want to hear it all? Click here for details.)
Stop the Government from Robbing You Blind
Economic growth is slowing around the world… and the U.S. may see a double dip recession.
How does the government plan on stimulating growth?
By devaluing their currency.
Consider:
- Gold is up 500% since 2002. It would not surprise me if gold hits $2,500 – $5,000.
- Oil is also 500% since 2002 – that’s outrageous.
- Corn up 223% since June 2010.
- Coffee up 240% since Feb 2010
Bottom line: You don’t have to go outside the U.S. to be affected by the falling dollar.
You just have to go to the grocery store… or try to fill up your tank at the gas station.
So what can you do to protect yourself? Well Sean Hyman says you have to ditch the dollar and buy gold… but what if you already own gold?
Sean revealed a unique way you can actually earn interest on gold… and capture most of the gains from the rising price.
All you have to do is buy the Aussie dollar. You see the Aussie dollar and gold are highly correlated – about 84% over the last couple of years – and when gold prices rise so does the Aussie dollar. Even better, holding the Aussie dollar will pay you over 4% interest.
Throughout his presentation, Sean didn’t just reveal Forex plays, he gave you nearly a dozen different ways to get outside the U.S. dollar fast including four different currency pairs to trade on rising inflation…four ultra-safe CDs to capture income as the dollar falls…four ETFs to buy immediately to profit off the dollar’s fall.
And he gave his #1 currency to buy for not just the next year, or two years – but the next decade.
Here’s the deal…
There’s so much action going on down here I don’t have time to share all the strategies and recommendations.
But if you grab a copy of the Global Currency Expo DVD’s before Wednesday… you can get all these tips delivered right to your door.
The excitement around here is contagious. (And it’s not just about getting to play the famous Torrey Pines golf course right behind our hotel.)
Yesterday, Erika Nolan asked attendees , “Who could imagine a world where the dollar is no longer the reserve currency?”
About 95% of the hands in the room went up.
Obviously, the people here “get it” and they’re taking the steps to protect themselves and find profitable opportunities outside the dollar.
They’ve already received a ton of actionable ideas and we’re just barely scratched the surface.
Later tonight, I’ll fill you in on our next group of speakers like Steve Sjuggerud who will be giving his “currency play” of the century. You’ll also get an inside look at our workshops by Evaldo Albuquerque and Greg McLeod on charting techniques and live Day Trading.
And that’s just 2 of the 6 workshops we have lined up just for the morning.
Until then…
Your Conference Insider,
Peter Monsen
P.S. I hate to say this but there is absolutely no way I can physically keep up with all the ditch the dollar strategies and recommendations at the conference. You see, we often have 4 workshops going at the same time (the value is unbelievable) and I have yet to figure out a way to clone myself (I’ve been working hard for you guys) so I can cover them all. But don’t worry. We’ve arranged to send you a complete set of DVD recordings from the Global Currency Expo. Just let us know if you want a copy and we’ll ship it directly to your door – with no risk to you.
Other Posts from the Author
- Obama Pushes to End Oil Company Tax Breaks - But It Doesn't Matter - March 29th, 2012
- Food Trucks and the Rise of Digital Currency - March 27th, 2012
- Digital Currency Use on the Rise in Sweden - March 19th, 2012
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