halving the us deficit in 4 years, page-10

just taking my thinking a bit further, and I've posted on this in more detail before.

US steps:

1. Have world-wide financial crisis.

2. Borrow really heavily from the world through Treasury Bonds, running up a HUGE debt (in US$).

3. Print and print and print to create massive inflation which massively devalues the US$.

4. Announce a new US currency linked to gold or silver or platinum and strike the rate of the new currency in a large old:new rate -say 1 "Redback" = 1,000 Greenbacks.

5. and perhaps even keep the old greenback for internal use within the USA, but the redback for all transaction trades outside the USA.

Results -

a. With precious metal backing (even if it's only 'digital gold') the new currency/redback rules supreme as the World Reserve Currency

b. All US debt (which has been reduced to 1/1,000 of its present value) can be paid for with the new currency/redback.

c. The redback becomes much sought after as a store of value/safety ... and consequently appreciates even further against all other currencies (which are all fiat).

d. AND the USA economy resumes world position No 1!


2 other things -

(i) the new currency which I've called the redback might be called the Amero (or something else)

(ii) the whole plan will only work if the USA is the first nation to announce and produce a non-fiat currency.

I'll wait to see what happens, but that's the way I'd play it.

It's why I'm holding onto my gold and silver for a long as I can.

fwiw


dub