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WAR is a racket. It always has been. It is possibly the oldest, easily the most profitable,
surely the most vicious. It is the only one international in scope. It is the only one in
which the profits are reckoned in dollars and the losses in lives.
-General Smedley Butler, USMC
Let me issue and control a nation's money and I care not who writes the laws.
-Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild
A good friend and fellow reader sent me the following note:
Hello Jeff,
Recently I have been discussing with my cousin, who collects paper currency, which
holds better value: gold/silver coin, or paper currency.
I must admit he does have an admirable collection of German marks from the start to
finish of their hyperinflation. He has notes arranged by year in pages of a photo album.
As I flipped through the album pages, one can almost "FEEL" the pressures of the
ensuing inflation. The album starts with 1,000 mark denomination that starts to escalate
in value to 10,000 marks, then100,000 marks in the following pages.
As inflation started to ramp up the denominations got larger; into billions of
marks. Eventually, the government couldn't print currency fast enough, the next album
pages showed notes printed only on one side.
As hyperinflation set in, printing currency on one side was not enough to meet demand,
so they took old issues and stamped the face of the bill in red ink with more ridiculous
amounts. Just before the collapse, the last issues had incredible numbers.
To be fair, my cousin trades paper currency and does not hold it for investment
purposes.
He does have a high turnover, so I guess small gains over many trades probably make it
a profitable venture for him.
However, for long term value, I disagreed with him that paper currency at the turn of the
18th-19th century (for collection purposes) was just as valuable as coinage with precious
metals.
I disagreed on that point, so decided to make my case on this point.
I went on the internet and picked 1928 as a reference year, when the U.S. had a $20
gold coin in circulation, as well as a $20 gold certificate. I found the current price for
both and results obtained in an attached file and sent that to my cousin.
The gold coin was worth $1200.
The $20 gold note was listed at $215. I will have to see what he says.
The foundation for collapse is already well established. Hyperinflation is fluid process. It
is a becoming. A great tsunami dislocating, destroying. In that sense it is already here.
Now is the time to act.
Don't wait for velocity. Don't wait for the surface tension to break. Don't wait for the
tsunami.
For more articles like this, including thoughtful precious metals analysis beyond the
mainstream propaganda and basically everything you need to know about silver,
short of outlandish fiat price predictions, check out http://www.silver-coin-
investor.com