Sources and division of wealth in society

By the way, after a cleansing collapse the values of things would remain unchanged including especially that of the dollar whose intrinsic value is and always has been exactly zero. Prices would change dramatically of course as they would no longer be denominated in dollars. They would be expressed in gold, bitcoins and/or whatever else the market chooses as a medium of exchange.

It amazes me that the dollar has persisted as long as it has. Its purchasing power has declined 95% since inception. It virtually grows on trees though only one privileged private cartel has the right to harvest them. And still people have confidence in it.

At least Americans do. The rest of the world has caught on and is moving away from the dollar. Unfortunately for them there aren't a lot of good alternatives. Mexico is talking about backing the peso with silver so there is some hope there. If they do that the Mexican peso could quickly become the new world reserve currency. Imagine that!

In the meantime if you want to protect yourself from the coming collapse all you have to do is diversify away from the dollar. Preferably away from all fiat currencies. Invest instead in gold (historically an excellent store of value), guns (for protection during a brief period of rioting and disorder and also an excellent store of value), productive real estate (they aren't making more of it), and necessities such as toilet paper and other things that might be in short supply for a brief interval.


Good point regarding the difference between value and price, also good regarding preparedness.

I would like to add two more reasons why the valueless dollar as well as other fiat currencies continue to pass as serious money: The average Joe on the street has no idea what money is or where it comes from; the general public does not care as long as the apparent "good life" continues. Sure, concerned folks would like to see changes -- from ending the Fed to approaches such as that described by Jason on his post -- but I think the majority would rather let things be.

A few years ago, a member of LPSF invested his own time and money creating CD's containing some basic economic pieces, like "I Pencil" etc, and LPSF invested some more time and money mailing those CD's to all the high schools in San Francisco and nearby towns. As far as I know, there was no response from any of the schools. It would have been nice to think that some teachers used the material, but we doubt that any cared to do so. In spite of the apathy challenge that good economic advice faces, I am tempted to suggest to LPSF to try again to send material to schools such as CD's of the "Biggest Scam" video.


I like that idea, Marcy. Adults who don't have inquiring minds are nearly beyond reach but young people who are still learning and wanting to learn how the world really works need this information. Nina