The Dollar Ain't What It Used To Be!

URL and to post comments: http://dollarvigilante.com/blog/2014/9/30/the-illusion-of-the-value-of-the-dollar.html Tuesday,September 30, 2014 [The following post is by TDV Chief Editor, Jeff Berwick] If you solely pay attention to the mainstream media headlines you will be so woefully misinformed that you would be better off not reading them at all. Here is a sample of recent headlines: "US dollar surges to record high," the headlines screamed in unison. As the dollar rally persisted, so did the headlines. "The U.S. dollar is on top of the world," wrote CNN. "The momentum of the dollar's advance is unprecedented," said analysts at Société Générale in a note Monday morning. "King of the World: Why the Almighty US Dollar Dominates," stated another online, yet lesser known website. "Dollar leapfrogs forecasts in world-beating rally," wrote Businessweek. What is missing amongst these headlines is any sense of perspective.  The dollar is not really rising in value.  Other assets may be falling in relation to the dollar at the moment but, certainly, by any estimation, the dollar has not risen in value since the advent of the Federal Reserve banking cartel in 1913. And that's exactly what was supposed to happen. If you're buying into the US dollar hype, rest assured it will rally but only for a fleeting time. Let's look at the big picture. Mashable puts everything into perspective nicely: "In 1810, you could buy three gallons of whiskey for just a dollar. Today that will get you a shot from a bottle you bought yourself. Inflation sucks, right? While you can get a snack or download an app for a buck, one dollar used to go a lot further — we're talking 10 cans of soup, an ounce of silver, four pounds of sirloin steak and two pounds of coffee." So while the media has been talking about how the dollar has been rising... it hasn't, really... other items in relation to it have been falling over recent weeks, like the Euro, gold and even bitcoin.  But this is a short-term blip in an otherwise ongoing collapse of the dollar as this graphic below, which was beautifully put together by Mashable, nicely demonstrates: The chart below put this data in a slightly different light. As we march towards The End Of The Monetary System As We Know It (TEOTMSAWKI) there will be a lot of volatility in almost every asset.  If the Japanese Yen turns into dust in the next year then currencies like the Euro or the US dollar will rise as a reflex as people attempt to flee the Yen.  If the Euro also reaches its intrinsic value in the next 1-2 years, again, relatively, the dollar will rise dramatically. But at some point the truth will become undeniable and the math so insurmountable that the US dollar will turn into wallpaper... not so different from the penny which is now cheap flooring. Ignore what you see on the television programming and use any uptick in the "value" of the dollar as an excuse to become a dollar vigilante and get rid of them in favor of some of our Killer B's, like bullion, bitcoin, bullets and bud (check out the TDV newsletter for more specific advice on getting into these sectors). Your grandkids will one day ask you how the world fell into the trap of using pieces of paper with dead criminals printed on it and controlled by a communist style centrally planned committee of economic morons as money.  If you are smart, now, you will laugh and tell them that is how you made your fortune... by shorting (selling) the dollar and buying real assets. Have memories about what you once could afford for $1? Let us know in the comments section

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media including CNBC, CNN and Fox Business.