The history of fiat currencies is that they last about 50 to 70 years before they are rejected by the people.
Usually, the people revert to gold and silver as currency because trust has been lost in the fiat currency (which was always worthless anyway). Governments reluctantly follow the people into silver and gold backed currencies until they can pull the wool back over the people’s eyes and introduce another fiat currency.
(Please don’t debate me on these points – if you really care, go do some research – be a student of history as your founding fathers were and you will understand why they wrote in the Constitution that only silver and gold will be legal money in the United States.)
The US dollar is a fiat currency and I believe it is currently at the end of its 50-70 year lifespan. The fact that the Federal Reserve has chosen to hide M-3 and repurchase agreement numbers (as of April, 2006)confirms to me that they are doing everything they can to prop up a failing economic system (which includes the fiat US dollar and the banking system that operates in the US dollar).
It is my opinion that we are headed into the next great depression. This one will be more dramatic than the one in the 1930s and it will encompass the entire globe. Declining real estate values and failing banks will be just a few of the steps on the downward staircase. It is also looking like disease and famine will occur on a global scale in coming years.
The current generations of Americans are not going to handle economic depression well at all! Very few people have seen hard times and we’re about to have them in spades!
Declining housing values will be the least of our worries in the coming years.
Believe it or not, I am not a pessimist even though I hold these pessimistic beliefs. I have reached these opinions during 5 years of research on the US and world economy. I have focussed in particular on the history of money and fiat currencies because I believe fiat currencies are the biggest scam ever pulled off on the people of the world. I believe that anyone who spends the time and energy to do the research I have done will arrive at the same or similar concusions.
I also acknowledge that most people will remain asleep in front of American Idol and other reality-TV tripe. These people will be blind-sided by the economic collapse and will, unfortunately, look to politicians to rescue them (which just starts the fiat currency, welfare-state cycle over again).
