Currency Wars, USD, YEN, Bitcoin and what it means to you.

Talk about anything here. Post lifespan is 1 year.

Postby hax0n on Fri Mar 22, 2013 4:00 pm

I'm going to preface this rant with a comparison to try and get everyone on board. As most of us collectors would agree, limited numbers placed on a print gives it its value and therefore everyone should agree "Less is More". More value, more collectible, more anger about eBay flippers. Demand stems completely from rarity. If everything was open edition, this website and the majority of it's users would not exist.

So in summary. Open editions are bad, Limited Editions are good.

We're on the same page? Great! Now, lets go back to the 20th century for a minute. Specifically August 15th 1971, The United States had been fighting a seemingly endless war in Vietnam and the costs of it were mounting. Then president Richard Nixon needed to figure out a way to pay for the war. At the time all United States Currency was backed by Gold at a locked price of $35.00 per ounce. So, Nixon with 15 finance advisers decided to stop backing the USD with Gold therefore giving himself the ability to create unlimited FIAT out of thin air.

So, Nixon changed the "Limited Edition Gold-Backed USD" into the "Open Edition FIAT CURRENCY USD".... Here's what happened next :

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From 1971 to 2013 the cumulative rate of inflation was 473.2%

CURRENCY WAR

Starting in 2007/8 with the mortgage backed security financial crisis the Federal Reserve took a stand to fight off the impending depression by giving Trillions of dollars to bail out the same banks and corporations that started the crisis instead of letting them fail.

What followed was a massive increase in the monetary supply.

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and where did all this bailout/QE1,2,3,Infinity money end up? In the stock market.

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Okay so the DJIA has hit new all time highs so the United States no longer is in a depression and all is well, right?

Wrong. Japan announced recently that it will begin Easing it's Monetary supply... and it has, aggressively. We are currently in a world wide race to the bottom, where the cheaper your countries exchange rate, the more trade transpires.

More trade you say? How can that be bad?! Well, once every country gets on the bandwagon we will all be printing into a downward spiral. The more money in the system, the less it is worth to the people that use it, and because it is all borrowed from banks the more DEBT will be created.

EU DEBT CRISIS

I'm sure everyone has heard about one European country or another requesting a bailout recently (Greece, Spain, etc). Well the most recent casualty of the DEBT crisis is a small island country called "Cyprus" and the way they are attempting to deal with it is by Taxing the Deposits of all Bank accounts upward of 10%...

The issue is still being debated but while everyone waits patiently the banks are all closed on "holiday" and will be for the foreseeable future, Businesses are only accepting cash and basically all commerce in the country has come to a complete standstill because people can't get their money out of the banks.

Who cares about a little island on the other side of the world? You do! The debt that Cyprus has to pay off so that it can receive a bailout from the EU is..... 6.7 BILLION EUROS, that's Billion with a "B".

In the United States we have a few Trillion more problems than they do....

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The only reason our debt has yet to collapse on itself is that we keep raising the amount we can borrow, mostly because we MUST. Without continued borrowing the whole system will collapse.

This sucks! So what can I do? How can I protect myself?

REAL ASSETS & DIGITAL CURRENCY

So if holding currency is isn't safe, what is? Well we could all drain our bank accounts and buy Twinkies but they would get old after awhile and storage would be tough.

So here is what I have come up with to store/save wealth during the impending FIAT Currency paper-storm:

1) Gold & Silver Bullion - Has intrinsic value, has been a store of wealth for centuries.
2) Food/Seed - Everyone has to eat and during any crisis food prices shoot up and shelves clear.
3) Cash - Get Cash from the bank, it will be good during the initial phase of the crisis when banks close and cash is the only form of payment accepted.
4) Alt Currency (Bitcoin) - Unregulated, Encrypted, Secure, Anonymous. http://en.wikipedia.org/wiki/Bitcoin

I probably rushed through most of my thoughts so if you want to discuss any/all this mumbo jumbo with me please do! :pint:
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electrachrome wrote:None of us who are responsible for this website really have any idea how it works

Postby Fattyramone on Fri Mar 22, 2013 4:18 pm

Just to add a very simplistic element to your detailed posting.

Everytime one of you guys on here refuses to even contemplate selling a poster overseas you are harming your own personal economy as well as your countries economy.

By taking payment of $100 , for example the UK , you would be adding to your countries export wealth. $100 in your personal bank account is also $100 in Americas bank account.

I would go as far to say that in refusing to deal outside the USA you are guilty of treason and should be taken to a wall in Mexico , blindfolded and shot by a group of men wearing sombreros and spitting in a nonchalent fashion.
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Postby hax0n on Fri Mar 22, 2013 4:44 pm

I never have a problem shipping internationally as long as they pay by gift.
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electrachrome wrote:None of us who are responsible for this website really have any idea how it works

Postby bkboy77 on Sat Mar 23, 2013 4:52 pm

Everything really depends on the faith of the holder on the currency/asset class he is holding. Fiat currencies are used to facilitate the exchange of goods. Inflation is the "tax" we all have to pay so as not to end up bringing 20 lean hogs into the dealership to purchase a new car.

You really can't compare fiat currency to the posters we collect since our posters are not items to facilitate exchange but rather a commodity that holds value.

Unless of course you are talking about this limited ed currency..... :drool:
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Postby fitz on Sat Mar 23, 2013 5:57 pm

hax0n wrote:2) Food/Seed - Everyone has to eat and during any crisis food prices shoot up and shelves clear.


OK - I just bought 200 big macs - now what do I do?
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Postby fnord on Sat Mar 23, 2013 6:01 pm

I should've bought more bitcoins when they were $10. Used them all up and now I'm kicking myself.
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Postby HisBobness on Sat Mar 23, 2013 6:02 pm

Waiting for my Dinar to cash in.........
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Postby misterx on Sat Mar 23, 2013 7:55 pm

Iceland had the right idea.
"2008 – The main bank of Iceland is nationalized. The Krona, the currency of Iceland devaluates and the stock market halts. The country is in bankruptcy.

2008 – Citizens rise up at Parliament and succeed in forcing the resignation of both the prime minister and the effective government. New elections are held.
Yet, the country remains in a bad economic situation. A Parliament act is passed to pay back 3,500 million Euros to Great Britain and Holland by the people of Iceland monthly during the next 15 years, with 5.5% interest.

2010 – The people of Iceland again take to the streets to demand a referendum. In January of 2010, the President of Iceland denies approval, instead announcing a popular vote on the matter by the people.
In March, a referendum and denial of payment is approved by popular vote of 93%. Meanwhile, government officials initiate an investigation to bring to justice those responsible for the crisis. Many high level executives and bankers are arrested. Interpol dictates an order to force all implicated parties to leave Iceland.

An assembly is elected to write a new constitution (based on that of Denmark) to avoid entrapments of debt based currency foreign loans. 25 citizens are chosen — with no political affiliation — out of the 522 candidates. The only qualifications for candidacy are adulthood and the support of 30 people. The constitutional assembly started in February of 2011. It continues to present ‘carta magna’ from recommendations provided by various assemblies throughout the country. Ultimately, it must be approved by both the current Parliament and the one created through the next legislative election.

It’s quite a story isn’t it? You can most definitely see at this point why this was not covered in newspapers, on radio networks and on television. Imagine seeing this story on TV several times each day wherever you live in the world; do you think the people would start to get ideas? Maybe try the same thing? Most definitely."
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Postby Codeblue on Sat Mar 23, 2013 8:02 pm

hax0n wrote:So here is what I have come up with to store/save wealth during the impending FIAT Currency paper-storm:

1) Gold & Silver Bullion - Has intrinsic value, has been a store of wealth for centuries.
2) Food/Seed - Everyone has to eat and during any crisis food prices shoot up and shelves clear.
3) Cash - Get Cash from the bank, it will be good during the initial phase of the crisis when banks close and cash is the only form of payment accepted.
4) Alt Currency (Bitcoin) - Unregulated, Encrypted, Secure, Anonymous. http://en.wikipedia.org/wiki/Bitcoin

Forgot the most important thing:
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Postby hax0n on Sat Mar 23, 2013 8:03 pm

fitz wrote:
hax0n wrote:2) Food/Seed - Everyone has to eat and during any crisis food prices shoot up and shelves clear.


OK - I just bought 200 big macs - now what do I do?


I dunno, ask Celsius, she loves those things to death :twisted:
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electrachrome wrote:None of us who are responsible for this website really have any idea how it works

Postby hax0n on Sat Mar 23, 2013 8:04 pm

Codeblue wrote:
hax0n wrote:So here is what I have come up with to store/save wealth during the impending FIAT Currency paper-storm:

1) Gold & Silver Bullion - Has intrinsic value, has been a store of wealth for centuries.
2) Food/Seed - Everyone has to eat and during any crisis food prices shoot up and shelves clear.
3) Cash - Get Cash from the bank, it will be good during the initial phase of the crisis when banks close and cash is the only form of payment accepted.
4) Alt Currency (Bitcoin) - Unregulated, Encrypted, Secure, Anonymous. http://en.wikipedia.org/wiki/Bitcoin

Forgot the most important thing:
Image


That would be for a nuclear disaster... if fudge like that goes down let me be the first to go please.
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electrachrome wrote:None of us who are responsible for this website really have any idea how it works

Postby Codeblue on Sat Mar 23, 2013 8:07 pm

Not really. You'll need that when everyone comes after your stash of gold, cash, food, and bitcoins during the coming Great Hubbub.
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Postby churdiales on Sat Mar 23, 2013 8:09 pm

Codeblue wrote:Not really. You'll need that when everyone comes after your stash of cash, food, and bitcoins during the coming Great Hubbub.


Human beings are nice to each other, this will never happen.
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krisjay wrote:I find this post odd.

Postby Codeblue on Sat Mar 23, 2013 8:10 pm

misterx wrote:An assembly is elected to write a new constitution (based on that of Denmark) to avoid entrapments of debt based currency foreign loans. 25 citizens are chosen — with no political affiliation — out of the 522 candidates. The only qualifications for candidacy are adulthood and the support of 30 people.

Pretty much what we have now. A bunch of popular morons.
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Postby misterx on Sat Mar 23, 2013 8:28 pm

dont see the US avoiding any debt traps blue....nothing like how it is now.
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