Can't. Won't.............from Rico

Read the following in this context:

"What can't be paid back, won't."

You can safely ignore the National Debt. It is reported on a cash-basis, and it is only $1.4 trillion Dollars.
What you should NOT ignore are the unreported unfunded National obligations that are more tha $100 trillion Dollars!

This is exactly WHY the US has been debasing its currency...it beats defaulting [for Democrats (C) read: we can't pay this back, so we won't]. Better to 'pay back' loans on nickels or pennies on the Dollar.


In two years we'll be 'celebrating' 100 years of the Federal Reserve (the FED). Yippee! Let's ignore the dabate over 'policy' this or 'policy' that for a moment, and consider not what has been SAID but rather what has been DONE!

The monetary rate of decay under the FED since 1913 looks like this (you debate and decide if this is arithmetic or geometric; the end result is the same):
- The Dollar lost 50% of its value in the first 33 years of the FED from 1913 to 1946,
- That 1946 Dollar lost 50% of its value in the following 24 years.
- By 1970, the value of the 1970 dollar halved again (yes, it dropped another 50%) in the following 9 years.
- The 1979 Dollar took 14 years to decline-drop-tank another 50% (give due credit to Volcker).

Before terminal MEGO sets in (my eyes glaze over) let's illustrate this in a simpler way. In a tangible way. Let's call this "A Tale of Two $50's."
- Once upon a time, there were two men. It was 1914 and they were both rich.
-- One had ten freshly printed $50 Dollar bills...the 'new' Federal Reserve Notes. They were pretty, but redeemable for nothing. He hid the notes under the floor of his house.
-- The other man had ten $50 Dollar bills...gold notes. They were also pretty, but they were redeemable for roughly 2.5 ounces of gold. He redeemed them and hid the gold under the floor of his house.
- Skipping the whole nightmare of FDR and Soetoro-Obama and fast forwarding to today. It is 2011.
-- The heirs to the first man's house find ten $50 Dollar bills. They are still redeemable for nothing. They are 'worth' less than a nickel-on-the-dollar from 1914 to 2011. They all celebrate by eating from the Dollar Menu at MacDonald's. Whee.
-- The heirs to the second man's house find 2.5 ounces of gold. That gold is worth over $3,000 present-day Dollars. They decide to keep the gold. It might be worth a lot one day.

This is devaluation. The death of fiat (paper) money.

What would YOU do?