Thursday, February 26, 2009

The Dollar

As the federal reserve and U.S. government work in conjunction to debase the dollar I'm left wondering what the future holds for the old greenback. Will we fall back to using gold for exchange? Will we go to a prison system where cigarettes are the currency of choice? Or will the idea of direct barter come back into play? I personally would like to see an open market where currencies can compete with one another. Gold, silver, and other precious metals have always held intrinsic value over the centuries and its clear they will once again be brought to the forefront. Fiat currency has proven to be not only unreliable, but creates a moral hazard. The U.S. is losing its grip on having the reserve currency of the world and very soon it will come back to haunt them. When other countries no longer accept dollars on the basis of our promise to pay, what then? Will we resort to military might to force it upon them? A slippery slope indeed. My recommendation is buy gold and hang on to it for dear life. Your thoughts?

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