Currency News – Time to Take on Debt?

The currency news mill is working overtime.

There have recently been more predictions of the imminent collapse of the U.S. dollar. And for good reason. According to some sources, a U.S. default is now certain.

Other sources say that the financial oligarchy — the true men in power in the U.S. — are preparing to drive the value of the dollar down by 30-50% in the next 12 months.

I’ve actually already seen the images of the plates for a new North American currency that could be released by the end of the year (2010). There are no dead presidents on these bills, but rather pictures of each of the founding members of the Federal Reserve.

How’s that for creepy?

No matter whether or not the rumors of a new currency are true, the future of the dollar isn’t looking good. And if it continues to decrease in value, it’s going to spell trouble for Americans. Which is why I think you have to ask yourself…

What If the Currency News Is True?

If the currency news is true, then that means our buying power is going to decrease during the coming months. Which means that we will not be able to buy as many products and services with the money we earn.

It could also mean that your income will go up. But this will only be an illusion of progress. While your income may increase, it most certainly will not increase as quickly as the prices of goods and services will increase.

Now let’s see how this relates to getting out of debt.

Your debt is essentially a fixed number, assuming that you are not incurring debt and you are making all your minimum monthly payments.

But in an inflationary situation, your income may be going up, as well as the prices of everything you normally buy.

This means that it will actually be easier to pay off your debt later with dollars that are worth less. I have read of stories where people paid off their homes in a just a few short years once hyperinflation kicked in.

So if I expect that we will see rapid inflation this year, it doesn’t make much sense to pay down my debt a whole lot. It makes more sense to wait and pay back the debt with cheap dollars that are easily obtained.

Protect Yourself from Inflation

In the mean time: I suggest you use the dollars you have right now to hedge against inflation. In other words, buy tangible goods… things that you think you will need this year and next.

Personally, I’ve used some zero-interest loans to acquire physical goods. I’ve done this with the expectation that the goods themselves will be worth more than dollars will be worth in the near future.

Also: I’m buying gold and silver. Owning precious metals will protect you from inflation in the months and years to come. I have already bought silver myself, and I believe this was a wiser way to spend my money than to pay down my debt.

This is just what I did, and it’s not intended to be financial advice, nor should it be considered as such. You will have to do your own research and due diligence before making any financial decisions.

Staying on top of the currency news is always a little bit discouraging… and exciting at the same time. I hope you’ve found this information helpful and interesting.

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8 thoughts on “Currency News – Time to Take on Debt?”

  1. Ryan,

    Sounds like you’re advocating doing what governments have always done when they have a fiat currency: borrow and then use inflation to pay it back with less “real” money/value out of their pockets.

    But I gotta say, turnabout on a financial system that is designed to be predatory is, in my opinion, fair play. :-)

    – John

  2. I stopped reading (and then laughed) here:

    “I’ve actually already seen the images of the plates for a new North American currency that could be released by the end of the year (2010). There are no dead presidents on these bills, but rather pictures of each of the founding members of the Federal Reserve.

    How’s that for creepy?”

    The North American Union/Amero currency BS was debunked long ago (http://www.snopes.com/politics/immigration/nau.asp). Using junk to support your thesis — regardless of its purported truth — undermines your credibility.

  3. Hey John,

    Yes, that’s pretty much what I’m advocating. :-)

    The system has always been designed to encourage people to spend and discourage them from saving. Hyperinflation just kicks the process into overdrive.

    They created the rules and, for better or worse, we have to play by those rules.

    Ryan

  4. S. Redis,

    The fact that you think Snopes is the authority on truth says more than you may think.

    Did you laugh too when the Euro was introduced in Europe? Has Snopes debunked the Euro yet?

    What you said bears repeating: Using junk to support your thesis undermines your credibility.

    Ditto that.

    Ryan

  5. Seriously? The European Union — and its legal tender, the euro — came to be because of actual binding accords among its member countries. (And it’s not as if that just popped up one day. It was the result of about 50 years of political and economic treaty-making, borne from a centuries-long tendency for those countries to wage war with one another.) So, all things considered, your question (“Has Snopes debunked the Euro yet?”) is absurd because the euro, you know, actually exists. Unlike the Amero, you can go into a bank and get a euro.

    The North American Union, as well as any currency it may create, remains a fantasy shared only by a few academics and a handful of lobbyists, and nurtured into an alternate reality by conspiracy theorists (Hello, Lou Dobbs!), paranoids (Hello, Ryan!), and hucksters who profit greatly from fomenting such nonsense (Hello, Jerome Corsi and WorldNetDaily!).

    If Snopes doesn’t fit your ideological world view, try this from Human Events, a conservative media outlet: http://www.humanevents.com/article.php?id=16103

    If that’s not enough, how about this from the Seattle Times: http://seattletimes.nwsource.com/html/opinion/2003847255_rams22.html

    Or this from the Boston Globe: http://www.boston.com/bostonglobe/ideas/articles/2007/11/25/the_amero_conspiracy/

    Or this from Forex, the currency trading site (note the date): http://forex.gftforex.com/public/item/229682

    Or this from the Mises Economics blog (from the Ludwig von Mises Institute, a leading center for the Austrian School of economics and libertarian political/social thought… a place where guys like Ron Paul and Peter Schiff should feel right at home): http://blog.mises.org/archives/008844.asp

    And those “plates” you linked to? They’re not plates. They’re someone’s artistic rendering of what they imagine Amero notes to look like. Currency printing plates are large, negative etched copper or zinc cylinders (see http://bit.ly/9VBqPy and http://bit.ly/a3lODN). What’s more is that the site you linked to — as well as the various other sites credited for releasing them in the first place — doesn’t provide any verifiable information about their source. And that’s supposed to be an authority on truth? Riiiight. But, hey, who am I to judge the things that come in so loud and clear on your tinfoil hat?

    1. Hmmm… I must have struck a nerve. :-)

      There was a point in time when the Euro did not exist.

      And the idea of America introducing a new currency is not some wild fantasy; it has a basis in history. The current dollar is not the first currency we’ve had. We’ve had many different kinds of currency.

      It is irrelevant whether a new currency is called the Amero or not… or whether it’s part of a North American Union or not. Those are distractions.

      The real issue is: The U.S. is essentially bankrupt. At some point, the dollar will no longer retain its value and a new currency will become inevitable.

      Ryan

      P.S. I haven’t read your links today… I’ve had a lot of work to get done… but I will look at them. Thanks for doing the leg work.

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