I have been living in the United Arab Emirates for the last 15 years and have been around when they shrunk the 1 dirham (28.5 mm to 24 mm) and 50 fil (25 mm to 21 mm) coins, and have enjoyed collecting the old 1 dirham coins and new 1 dirham commemorative coins. Was also around when they introduced the 20 dirham note and when they reintroduced the 200 dirham bill.
At that point in time, I hadn’t figured out what the need for this was, but now know that this is one of the signs of inflation. As the 1 dirham coin began to purchase less and less, it was necessary to have more 1 dirham coins to carry round, so reducing its size is the best way to go. Before the 20 and 200 dirhams bills came along, there were no bills between the 10 and 50 or the 100 and 500, but as the currency devalues, its more convenient to hold two 20 dirham notes over four 10 dirham notes and what use to cost 100 dirhams is now getting closer and closer to cost 200 dirhams.
After learning that the US dollar has lost over 95% of its value over the last 100 years, I was curious to find out what the UAE central bank decided what the value of 1 AED was worth when it was established. When the first reminisce of the UAE Central Bank came into effect in 1973, it was setup in order to create a currency for the 2-year old nation and to replace the currencies currently in circulation (Bahraini dinar, Qatari riyal, and Dubai riyal). After the currency was setup in May 1973, fully backed by gold and foreign currencies, the dirham was worth 0.186621 grams of gold and pegged to the US dollar at 3.94737. So over the last 38 years since the UAE currency was setup, the dirham has lost over 97% of its value, as 1 dirham in 1973 is worth over 37 dirhams today.
My first introduction to Congressman Dr. Ron Paul was in the 2008 documentary I.O.U.S.A. wherein he was discussing the money supply, and that short clip of his included the most imprinted image I had of him – him sitting at his desk with a sign “Don’t Steal – The Government Hates Competition.”
Ron Paul has been in elected office for more years than I have been alive and has never changed his libertarian views regarding the constitution and the need for sound money (gold standard). He has run for president in 1988 and 2008 and will attempt his last run for president next year. His 2008 campaign has woken alot of people up in the US, with his ‘Campaign for Liberty’. I wish him the best and hope that he gets elected, but being a year older than John McCain, I believe they will use his age against him, but hopefully he will have a competent VP to shrug that off. Unfortunately, he wont be running for re-election in the congress next year, as he will be missed from doing the many entertaining exchanges with Federal Reserve chairmen, like the one below on July 13th with Ben Bernanke.
Well I wasn’t in the know when Quantitative Easing (QE) 1 (Mar 2009 to May 2010 – $1.25 trillion in mortgage-backed securities from banks) and QE Lite (September 2010 – $300 billion – reinvest the proceeds of maturing mortgage-backed securities into Treasury bonds) occurred, but was well aware that QE 2 (November 2010 to July 2011) was happening and that the FED would buy $ 600 billion dollars worth of treasury bonds. So though Chairman Ben Bernanke stated on June 3rd 2009, that “The Federal Reserve will not monetize the debt”, he guaranteed that the FED would not create new money out of thin air to buy government bonds. But that is what has happened with QE 2, as explained simply in the below animated 3-minute video entitled ‘Federal Reserve Debt Monetization Explained’.
Since the start of QE 2, I have heard from many people that I follow that QE 3 will happen. The first of which was Jim Rickards, who during an interview with Eric King of King World News believed that the FED would secretively do it using the revenue from maturing debt from its balance sheets. The next time I heard about the possibility of QE 2 continuing was during a James Turk presentation at the Sound Money Conference [38:43-41:23] in January 2011, where he displayed a slide from his presentation [page 80] that showed the correlation of the FED monetizing to the S&P 500 Index. The slide clearly shows that the stock market is being carried by the constant money printing of the private Federal Reserve.
I then heard from my favourite economist/investor Peter Schiff who believes that the US financial system would crash if the FED ends QE, which he first stated in the May 17th episode of his Schiff Radio show, where he said, “There was a period of time where people looked at weak economic data as a positive, because it meant that QE 2 would continue and the FED would not cut it short. Now, I guess that mindset isn’t there any more, people are thinking the economy is weakening, the FED is going to end QE over the summer, which means we are headed back to recession. … What I think traders don’t understand, is that Ben Bernanke is lying. QE 2 is not going to come to an end. In fact if it did, we wouldn’t just be headed for a recession, we would be heading to depression. We would be headed for bank failures bigger than 2008, which is the reason that I’m so convinced that it ain’t gonna happen. The market correctly understands the economy is slowing down, but they don’t understand just how dependent it is on QE 2 and how it will not just slow down, but fall off the edge of a cliff, if it ends. … As it becomes obvious that the economy is weakening, low and behold the FED is going to come out and say ‘Oh no! Who knew about this. I guess we are going to have to do QE 3’ or QE 2.0 or whatever they are going to call it, but its going to happen.” [2:48-8:20]
One of the things that intrigued me on my pursuit of knowledge is that in addition to the economic, educational, information, and energy slavery that we currently live in, we are also living in an environment of health slavery. Health slavery has various parts that over lap with the other types of slavery, like medicines being over priced (economic) and not having access to alternative health concepts (educational and information). I personally rarely go to the doctor because the biggest problem I have can be solved with some sleep and possibly a panadol/asprin. My wife on the other hand saw the effect that conventional medicine had on our first born and since then, she has decided to use alternative medicine. The health slavery that I have woken up to ranges from vaccines, medicine, food, water, toothpaste, etc. that we take or use, which has affects on our bodies.
The reason why I decide to write about the issue of health slavery today, was because I stumbled on a documentary about curing cancer without the need of chemotherapy and radiation. The nearly 2 hour documentary is called ‘Burzynski The Movie – Cancer Is Serious Business’ and it was a real eye opener.
The documentary shows the struggle of one well intentioned man against the power of an industry, the basic David versus Goliath story. I have no doubt that Big Pharma (pharmaceutical industry), similar to any other industry, has played similar games with many individuals who have threaten their dominance in the market with a new type of medicine/drug or medical practice/therapy. With their endless supply of money, they can bankrupt individuals with litigation or with their influence, they can have your research or property stolen by the authorities/government. This is one of the exceptions that we are blessed to know about, wherein David was victorious.
I’ve always heard the phrase, ‘Those who do not read history are doomed to repeat it’, and boy does make sense. Our minds are wired that we are able to forget and it has its advantages and disadvantages, like being able to forget when a loved one dies and thinking that this time around housing prices can only go up. So throughout time, we have been trying unbacked fiat money and saying this time will be different, but that simply brings to mind Albert Einstein quote about insanity, ‘doing the same thing over and over again and expecting different results.’ When a fiat currency fails, a new fiat currency arises or a new gold or silver standard is adopted. But the problem these days is that every currency in the world is a fiat currency, it has been like that since 1971, and the US dollar is the pinnacle of this fiat currency system. When people loose faith in this flawed monetary system, as always, they will go back to gold and silver to protect themselves.
Below are clips produced by the GoldMoney Foundation, featuring Max Keiser, James Turk and Pierre Jovanovic, as they discuss the two fiat collapse in France in the 1700s.