Category Archives: Gold

Money As Debt

Good Saturday Morning;

I am off on my morning run; now up to 2.25 miles on my way to being able to run a 5 K in June.  Then I will be off working on building a play structure with other volunteers at our church.  Does part of your tithing involve giving of your talents to the Lord for things that will further His kingdom?  Just a thought.  I have lots of personal projects and recreation I would probably have as much or more fun doing, but seeing those kids using the playground at church will pay dividends for years into the future.

I don’t have a Saturday cartoon per se, but if you take the time to watch this great video you will understand a lot about money and why the events are happening in Greece, Spain and the EU this week and why they will soon reach the United States.

The  following video is not really a cartoon but in 48 minutes you will learn the answer to the questions that very few people in the World understand.

  • What is Money?
  • Where does it come from?
  • How Does Banking Work Today?
  • What is fractional banking?
  • What does the sign in the bank mean when it says; “backed by the full faith and confidence of the Citizens of the U.S.”?

Money as Debt

A great primer for anyone from  12 to 100!

The expansion of $100 through fractional-reser...

The expansion of $100 through fractional-reserve banking with varying reserve requirements. Each curve approaches a limit. This limit is the value that the money multiplier calculates. (Photo credit: Wikipedia)

Have a great day!

Regular Joe

Red Flags for the World Wide Economy

Part of being prepared involves looking rationally at current world events and likely events coming in the near future.  A short internet search of potential world disasters will take you from the mundane to extreme fantasies.  As Preppers or survivalists it is important to make evaluations about the possibility of these different events happening.  No family can be completely prepared for every eventuality.   Some of the most likely disasters to affect families in the near future are financial.   The Economic Collapse Blog is a great one source stop for economic information.

If what you are hearing about the “economic recovery” on the main stream evening news or the newspaper doesn’t seem to fit with the situation in your neck of the wood, you are not alone!  When I talk to people from different parts of the country I get comments like “things aren’t going as well here as they are nationally.”  The funny thing is that people from all over the country say this.  They are told on the evening news that things are getting better and believe it, they assume it just is their area that is not “in the recovery mode”.

There are a lot of possible problems on the horizon and I personally think world wide financial problems are high on the “possible threats list”.  The article 22 Red Flags That Indicate That Very Serious Doom Is Coming for Global Financial Markets  is a must read in my estimation.

Remember that God doesn’t want us to have a spirit of fear when we read these things.  We should do what we can in the physical realm to prepare and go to God for strength to weather whatever trials face us.

22 Red Flags That Indicate That Very Serious Doom Is Coming For Global Financial Markets

Red Flag Warning!

Red Flag Warning!

If you enjoy watching financial doom, then you are quite likely to really enjoy the rest of 2012. Right now, red flags are popping up all over the place. Corporate insiders are selling off stock like there is no tomorrow, major economies all over Europe continue to implode, the IMF is warning that the eurozone could actually break up and there are signs of trouble at major banks all over the planet. Unfortunately, it looks like the period of relative stability that global financial markets have been enjoying is about to come to an end. A whole host of problems that have been festering just below the surface are starting to manifest, and we are beginning to see the ingredients for a “perfect storm” start to come together. The greatest global debt bubble in human history is showing signs that it is getting ready to burst, and when that happens the consequences are going to be absolutely horrific. Hopefully we still have at least a little bit more time before the global financial system implodes, but at this point it doesn’t look like anything is going to be able to stop the chaos that is on the horizon.

The following are 22 red flags that indicate that very serious doom is coming for global financial markets….

#1 According to CNN, the level of selling by insiders at corporations listed on the S&P 500 is the highest that it has been in almost a decade. Do those insiders know something that the rest of us do not?

#2 Home prices in the United States have fallen for six months in a row and are now down 35 percent from the peak of the housing market. The last time that home prices in the U.S. were this low was back in 2002.

#3 It is now being projected that the Greek economy will shrink by another 5 percent this year.

#4 Despite wave after wave of austerity measures, Greece is still going to have a budget deficit equivalent to about 7 percent of GDP in 2012.

#5 Interest rates on Italian and Spanish sovereign debt are rapidly rising. The following is from a recent RTE article….

Spain’s borrowing rate nearly doubled in a short-term debt auction as investors fretted over the euro zone’s determination to deal with its debts.

And Italy raised nearly €3.5 billion in a short-term bond sale today but at sharply higher interest rates amid fresh concerns over the euro zone outlook, the Bank of Italy said.

#6 The government of Spain recently announced that its 2011 budget deficit was much larger than originally projected and that it probably will not meet its budget targets for 2012 either.

#7 Amazingly, bad loans now make up 8.15 percent of all loans on the books of Spanish banks. That is the highest level in 18 years. The total value of all toxic loans in Spain is equivalent to approximately 13 percent of Spanish GDP.

Read the Rest Of the Article Here

Saturday Cartoons for March 31

Good Morning Joes and Janes

It’s Saturday Morning!  Grab a cup of Joe and a donut and watch a cartoon with me this morning!   Oh, and by the way, just a heads up…. don’t believe anything you hear tomorrow morning when you wake up…. It will be April 1st!  April Fools Day!  For all of you Joker Joes  don’t forget to plan something great for those that you hold dear!

Understanding the Financial Crisis

And of course a toon for the kids or grand kids if they are hanging around this morning.  Ready Set Prepare talks about the need for a Go Go Bag for each person in the house.

Do you have your Go Go Bags ready to Go?

Bug Out Bag - currently

Bug Out Bag - currently (Photo credit: Steven Vance)

Watch for Regular Joe’s upcoming free course 1 Year to Preparedness.  Once a week you will get a free lesson plan that you can do with your family to help you be more prepared.  Simple, hands on skills and actions you can take and implement in your home.

Until later;

Regular Joe

10 Reasons the Dollar Will Collapse

If you are concerned about being prepared then it is important to understand what the threats are that you and your family may face.  One of the major threats that will affect many areas of our lives is the coming collapse of the U.S. Dollar.   In our fast food society we expect things to happen immediately.  We drive up order some food and minutes later we are driving down the road eating a burger and fries.  While things in history can happen quite quickly, they don’t typically happen overnight.  The collapse of the American financial system is an example of that.

One of the best books I have read covering the subject is; Aftershock – Protect Yourself and Profit in the Next Global Financial Meltdown by David Wiedemer, Robert A Wiedemer and Cindy Spitzer.  In a fairly short space of 300 pages it explains how manipulation of the capitalist system by the government has brought about bubble economies that are artifically inflated.  As these bubbles have grown and then sucessively begun to burst each adds more burden to the next bubble causing it to burst.  This has been happen over the course of a decade or more.  The following map is a clue to the trouble we are in.  In fact if the U.S. dollar was not the reserve currency of  the world we would already have had to pay the piper so to speak.

Country foreign exchange reserves minus external debt

For more information on this map click here

People have a tendency to relate current events to past experiances.  The problem is that we are breaking new ground now.  The housing bubble and the person debt bubbles have not finished bursting and as they continue their collapse add more instability to the  last two bubbles.   Thus we are not “almost out of the woods” as the evening news would like to tell you every evening.  The next bubble to break will be the Dollar Bubble.  No one knows exactly when this will happen.  10 warning signs are given in the article below from The Economic Collapse  

I encourage you to read the book Aftershock and this article that pulls together a lot of facts in one place.  Then make sure to take a look at ways you might want to alter your preparedness plans to meet the coming dollar collapse.

Regular Joe

10 Reasons Why The Reign Of The Dollar As The World Reserve Currency Is About To Come To An End

The U.S. dollar has probably been the closest thing to a true global currency that the world has ever seen. For decades, the use of the U.S. dollar has been absolutely dominant in international trade. This has had tremendous benefits for the U.S. financial system and for U.S. consumers, and it has given the U.S. government tremendous power and influence around the globe. Today, more than 60 percent of all foreign currency reserves in the world are in U.S. dollars. But there are big changes on the horizon. The mainstream media in the United States has been strangely silent about this, but some of the biggest economies on earth have been making agreements with each other to move away from using the U.S. dollar in international trade. There are also some oil producing nations which have begun selling oil in currencies other than the U.S. dollar, which is a major threat to the petrodollar system which has been in place for nearly four decades. And big international institutions such as the UN and the IMF have even been issuing official reports about the need to move away form the U.S. dollar and toward a new global reserve currency. So the reign of the U.S. dollar as the world reserve currency is definitely being threatened, and the coming shift in international trade is going to have massive implications for the U.S. economy.

A lot of this is being fueled by China. China has the second largest economy on the face of the earth, and the size of the Chinese economy is projected to pass the size of the U.S. economy by 2016. In fact, one economist is even projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040.

So China is sitting there and wondering why the U.S. dollar should continue to be so preeminent if the Chinese economy is about to become the number one economy on the planet.

Over the past few years, China and other emerging powers such as Russia have been been quietly making agreements to move away from the U.S. dollar in international trade. The supremacy of the U.S. dollar is not nearly as solid as most Americans believe that it is.

As the U.S. economy continues to fade, it is going to be really hard to argue that the U.S. dollar should continue to function as the primary reserve currency of the world. Things are rapidly changing, and most Americans have no idea where these trends are taking us.

The following are 10 reasons why the reign of the dollar as the world reserve currency is about to come to an end….

#1 China And Japan Are Dumping the U.S. Dollar In Bilateral Trade

A few months ago, the second largest economy on earth (China) and the third largest economy on earth (Japan) struck a deal which will promote the use of their own currencies (rather than the U.S. dollar) when trading with each other. This was an incredibly important agreement that was virtually totally ignored by the U.S. media. The following is from a BBC report about that agreement….

China and Japan have unveiled plans to promote direct exchange of their currencies in a bid to cut costs for companies and boost bilateral trade.

The deal will allow firms to convert the Chinese and Japanese currencies directly into each other.

Currently businesses in both countries need to buy US dollars before converting them into the desired currency, adding extra costs.

#2 The BRICS (Brazil, Russia, India, China, South Africa) Plan To Start Using Their Own Currencies When Trading With Each Other

The BRICS continue to flex their muscles. A new agreement will promote the use of their own national currencies when trading with each other rather than the U.S. dollar. The following is from a news source in India….

The five major emerging economies of BRICS — Brazil, Russia, India, China and South Africa — are set to inject greater economic momentum into their grouping by signing two pacts for promoting intra-BRICS trade at the fourth summit of their leaders here Thursday.

The two agreements that will enable credit facility in local currency for businesses of BRICS countries will be signed in the presence of the leaders of the five countries, Sudhir Vyas, secretary (economic relations) in the external affairs ministry, told reporters here.

The pacts are expected to scale up intra-BRICS trade which has been growing at the rate of 28 percent over the last few years, but at $230 billion, remains much below the potential of the five economic powerhouses.

#3 The Russia/China Currency Agreement

Russia and China have been using their own national currencies when trading with each other for more than a year now. Leaders from both Russia and China have been strongly advocating for a new global reserve currency for several years, and both nations seem determined to break the power that the U.S. dollar has over international trade.

#4 The Growing Use Of Chinese Currency In Africa

Who do you think is Africa’s biggest trading partner?

It isn’t the United States.

In 2009, China became Africa’s biggest trading partner, and China is now aggressively seeking to expand the use of Chinese currency on that continent.

A report from Africa’s largest bank, Standard Bank, recently stated the following….

“We expect at least $100 billion (about R768 billion) in Sino-African trade – more than the total bilateral trade between China and Africa in 2010 – to be settled in the renminbi by 2015.”

China seems absolutely determined to change the way that international trade is done. At this point, approximately 70,000 Chinese companies are using Chinese currency in cross-border transactions.

#5 The China/United Arab Emirates Deal

China and the United Arab Emirates have agreed to ditch the U.S. dollar and use their own currencies in oil transactions with each other.

The UAE is a fairly small player, but this is definitely a threat to the petrodollar system. What will happen to the petrodollar if other oil producing countries in the Middle East follow suit?

#6 Iran

Iran has been one of the most aggressive nations when it comes to moving away from the U.S. dollar in international trade. For example, it has been reported that India will begin to use gold to buy oil from Iran.

Tensions between the U.S. and Iran are not likely to go away any time soon, and Iran is likely to continue to do what it can to inflict pain on the United States in the financial world.

#7 The China/Saudi Arabia Relationship

Who imports the most oil from Saudi Arabia?

It is not the United States.

Rather, it is China.

As I wrote about the other day, China imported 1.39 million barrels of oil per day from Saudi Arabia in February, which was a 39 percent increase from one year earlier.

Saudi Arabia and China have teamed up to construct a massive new oil refinery in Saudi Arabia, and leaders from both nations have been working to aggressively expand trade between the two nations.

So how long is Saudi Arabia going to stick with the petrodollar if China is their most important customer?

That is a very important question.

#8 The United Nations Has Been Pushing For A New World Reserve Currency

The United Nations has been issuing reports that openly call for an alternative to the U.S. dollar as the reserve currency of the world.

In particular, one UN report envisions “a new global reserve system” in which the U.S. no longer has dominance….

“A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency.”

#9 The IMF Has Been Pushing For A New World Reserve Currency

The International Monetary Fund has also published a series of reports calling for the U.S. dollar to be replaced as the reserve currency of the world.

In particular, one IMF paper entitled “Reserve Accumulation and International Monetary Stability” that was published a while back actually proposed that a future global currency be named the “Bancor” and that a future global central bank could be put in charge of issuing it….

“A global currency, bancor, issued by a global central bank (see Supplement 1, section V) would be designed as a stable store of value that is not tied exclusively to the conditions of any particular economy. As trade and finance continue to grow rapidly and global integration increases, the importance of this broader perspective is expected to continue growing.”

#10 Most Of The Rest Of The World Hates The United States

Global sentiment toward the United States has dramatically shifted, and this should not be underestimated.

Decades ago, we were one of the most loved nations on earth.

Now we are one of the most hated.

If you doubt this, just do some international traveling.

Even in Europe (where we are supposed to have friends), Americans are treated like dirt. Many American travelers have resorted to wearing Canadian pins so that they will not be treated like garbage while traveling over there.

If the rest of the world still loved us, they would probably be glad to continue using the U.S. dollar. But because we are now so unpopular, that gives other nations even more incentive to dump the dollar in international trade.

So what will happen if the reign of the U.S. dollar as the world reserve currency comes to an end?

Well, some of the potential effects were described in a recent article by Michael Payne….

“The demise of the dollar will also bring radical changes to the American lifestyle. When this economic tsunami hits America, it will make the 2008 recession and its aftermath look like no more than a slight bump in the road. It will bring very undesirable changes to the American lifestyle through massive inflation, high interest rates on mortgages and cars, and substantial increases in the cost of food, clothing and gasoline; it will have a detrimental effect on every aspect of our lives.”

Most Americans don’t realize how low the price of gasoline in the United States is compared to much of the rest of the world.

There are areas in Europe where they pay about twice what we do for gasoline. Yes, taxes have a lot to do with that, but the fact that the U.S. dollar is used for almost all oil transactions also plays a significant role.

Today, America consumes nearly a quarter of the world’s oil. Our entire economy is based upon our ability to cheaply transport goods and services over vast distances.

So what happens if the price of gasoline doubles or triples from where it is at now?

In addition, if the reign of the U.S. dollar as global reserve currency ends, the U.S. government is going to have a much harder time financing its debt.

Right now, there is a huge demand for U.S. dollars and for U.S. government debt since countries around the world have to keep huge reserves of U.S. currency lying around for the sake of international trade.

But what if that all changed?

What if the appetite for U.S. dollars and U.S. debt dried up dramatically?

That is something to think about.

At the moment, the global financial system is centered on the United States.

But that will not always be the case.

The things talked about in this article will not happen overnight, but it is important to note that these changes are picking up steam.

Under the right conditions, a shift in momentum can become a landslide or an avalanche.

Clearly, the conditions are right for a significant move away from the U.S. dollar in international trade.

So when will this major shift occur?

Only time will tell.

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Buy Your Gas for 20 Cents a Gallon

Good Sunday Morning Regular Joes and Janes;

SIGN OF THE PAST IS THIS ABANDONED GASOLINE PU...

SIGN OF THE PAST IS THIS ABANDONED GASOLINE PUMP WITH A PRICE OF 29.9 CENTS PER GALLON. THE COST OF FUEL HAS MADE... - NARA - 555508 (Photo credit: Wikipedia)

Nothing like a cup of coffee (or 3) before heading off to church and other activities.  Wouldn’t it be great if the gas you were using today only cost .20 or .25 cents a gallon?  Well it still can….sort of.  I read an interesting post on The New American.com today.  I thought I would pass it along for your learning experience.  The article is “How to Buy Gasoline for 20 Cents a Gallon”  I highly recommend it, not because it may change the way you invest some of your savings.  It is a real eye opener if you haven’t been paying attention to inflation and how the government and private banking, (The Federal Reserve) manipulate money.

Written by Chip Wood
Saturday, 24 March 2012 10:30

Chip WoodHas the price of gas hit $4 a gallon yet where you live? As I mentioned in last week’s column, several analysts predict that cost will seem cheap before the year is out. Are you ready to pay $5 a gallon?

Some neighbors and I were reminiscing recently about how cheap things were back in “the good old days.” I mentioned that the very first credit card I got was for one of the gas-station chains. Back then, gasoline cost less than 25 cents a gallon.

Then I said something that stopped them cold. “Do you know that you can still buy gasoline for about 20 cents a gallon?” They were all positive there was a trick to my question — and there was. My claim is absolutely, totally, 100 percent true — if you pay with dimes that were minted before 1965.

Back then, dimes, quarters, half dollars, and silver dollars were 90 percent pure silver. Today, those coins are commonly referred to as “junk silver.” But believe me, there is nothing junky about them.

Click here to read the rest of the article at The New American

A great article huh guys?  If you are like most of the Regular Joes I know you are not in the market to go out and buy an ounce of gold and time soon.  I hope that it will help motivate you to find a reputable local coin dealer and spend a little every  week or month buying a little junk silver.  I have some and hope to purchase a little more every month.

PS.  Don’t forget the other precious metal….Lead! as in ammunition.

Regular Joe

A sign of things to come?

A sign of things to come?

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