Topic: Ron Paul on Bitcoin: "The dollar has lost 97 percent of its value..." (Read 3774 times)

I assume you are not including the fait currencies that every single country on the face of the planet currently use? Your statement is like saying 'every species of animal in history have eventually gone extinct.'

All fiat currencies, every one of them in history have eventually gone to their intrinsic value. Zero.

In fact, the dollar has lost 99.99% of its value between 1914 and 2014. but still no need to panic, why should we?

Those that could afford to buy homes..65% of the population of which 29% of those are mortgage free have gained from their ownership if it was prior to 2007/2008

Those whose daily lives are  most impacted by inflation tax are the 35% + that do not own and the 17% of mortgages that are seriously under water...that's a LOT of families.

http://www.housingwire.com/articles/29696-of-homes-with-a-mortgage-seriously-underwater

for most middle/upper middle income groups a high inflation rate will not mean they have to cut back on basic food/ entertainment clothes gifts driving etc.

for the 35%+ poorest a 19%- 22% food inflation for 2014 (so far) denies them the ability to do many of those things and worse puts and KEEPS them in the "poverty trap" of welfare.

http://www.infowars.com/the-real-inflation-fear-us-food-prices-are-up-19-in-2014/

http://www.breitbart.com/Big-Government/2014/05/24/U-S-Food-Inflation-Running-at-22

As a larger percentage of their income is spent on food than that of the middle/ upper classes..Is that not disproportionate?

Which of those groups will not have decent appliances, smart clothes nice cars etc because of having to spend more of their limited funds on feeding their family?

Whilst inflation "tax" affects all, only the poorest have to sacrifice on a major scale. In a free market  these things happen ..there are winners and losers..but this does not need to be compounded by government policy ..giving greater benefits to the rich..banks and financial institutions bail outs/ printing money and 0 interest to certain institutions at the expense of inflating and inflation leading to increased hardship for the least fortunate of society

http://www.zerohedge.com/news/2014-06-20/inflation-only-if-you-look-food-water-gas-electricity-and-everything-else

and cooking the books is dishonest whatever spin they want to put on it

http://www.forbes.com/sites/perianneboring/2014/02/03/if-you-want-to-know-the-real-rate-of-inflation-dont-bother-with-the-cpi/

The US dollar is backed by the US economy.

Well inflation has affected much of the middle class but it's generational - older people who bought homes before the 1990s are now sitting on $300K to $1 million dollar properties, since assets held their value against $Fiat and in some ways even went up in value (due to commodifying money).

+1

Not just a saying but a truth and it is a tax , this has been admitted by  Ben Bernanke and Ronald Regan amongst others

http://www.youtube.com/watch?v=D4yBrxmEOkY

http://theeconomiccollapseblog.com/archives/inflation-is-a-tax-and-the-federal-reserve-is-taxing-the-living-daylights-out-of-us

This tax  disproportionally affects the poor!!!

It is grotesque when the government puts a bigger bite on the poorest citizens.

http://www.dailyworld.com/article/20121219/NEWS01/212190302/Inflation-tax-poor?nclick_check=1

Worse ...they KNOW this full well and have adjusted the calculations ( frequently) to make it look lower than those used in previous administrations ( look  .. CP inflation is at only 2% better than in 1980/90  we are doing great job)

If it was calculated the same way it was in 1980 inflation is running at 10%..not such a great job and a horrible "hidden" tax on the poorest

http://www.shadowstats.com/alternate_data/inflation-charts

If this was not a bad thing then why "cook the books" in order to hide that ??

The middle class and the upper class knows that, but many of the working poor do not.  Inflation is a tax on the poor, is the old saying.

no, not everybody knows that.

if they did, more people would be using Bitcoin already.

"The dollar has lost 97 percent of its value..." is a sensationalist headline. It only matters if dollar is hoarded long-term. Yes, currencies also work as a store of value, but in our system it's not supposed to be a longterm store of value and everybody knows that.

There are more important things to look at.

Internal beauty, my friend ;-)

Hire a psychiatrist to fix the other politicians brains 

it is backed by the law AKA threat of violence

real honest money is always free money, in your country there used to be such a thing as free coinage and actually the US constitution supports that ... but the constitution is not being honored by your government.

I suspect that IF the powers that be ( financial and political) want to have a mild transition from fiat to crypto they can do it IF they want to

Why/how?

1 most people in the World are not affected by value of  fiat savings

a) Half just have NO MONEY at all !

Almost half the world — over three billion people — live on less than $2.50 a day.

http://www.globalissues.org/article/26/poverty-facts-and-stats

A slightly older report

http://worldcentric.org/conscious-living/social-and-economic-injustice

b) of the other half in Western "rich" LOL societies like the USA, 76% live from pay check to pay check


Roughly three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings, according to a survey released by Bankrate.com Monday.

http://money.cnn.com/2013/06/24/pf/emergency-savings/

c) Those rich who are not "dumb" will monitor the situation and hedge their bets once they accept that this is good for everyone, including them in the long run and that it can no longer be stopped. The honest and/or wise ones will not lose much, in fact they could well gain wealth in the process.

So , arguably, only a minority of the worlds total population would be adversely affected if a well organized and gradual transition takes place.

I can see a scenario where governments eventually embrace crypto currency..introducing their own.

It has some fantastic advantages that we have heard about before like frictionless/ cost efficient etc. and for this reason they would want it but only WHEN it is no longer possible/ acceptable to inflate by printing and it may well take a global fiat crash to get to that point in time. That crash will not be because of the emergence of cryprto's but due to their reckless policies over decades and the pain/ blood on the streets will occur for that reason. Crypto currency would make a good solution once that scenario happens.

A transition to a new National crypto could be be a boon for Governments....All money in BANKS and financial instruments ( legal money) will be exchanged automatically at the government rate. All money in private hands would be exchanged at authorized institutions.. all illegal money such as from crime/ undeclared for tax purposes will have problems getting exchanged ( though not impossible) but it will have a cleansing effect to some degree.
I have been through this type of scenario when the UK went decimal in 1971 so I know it works and can be managed without too many problems.

http://en.wikipedia.org/wiki/Decimal_Day

Quick decision

But remarkably it took the government only seconds to decide to get rid of the currency that had served Britain for thousands of years.


http://www.bbc.co.uk/news/business-12346083

summary

I believe a global transfer to crypto currency is a matter of when..not if

The percentage of the worlds population adversely affected in a transition would be (well) under 20%

Bitcoin will co exist with new National/ or economic block Cryptos eg north American/ ASEAN

It would be nicer to have them plan and manage the transition well ( and I am 100% sure that there are people studying/ working on this)  because it is just BETTER than fiat and not wait until there is too much "blood on the streets"

As much as i'd like for fiat to die horrible death, i know that in process ALOT of people will loose all they have and probably there will be some blood spilled too so i cant really say i'm hoping it comes as soon as possible. Changes like that are volatile and very unpredictable. Yes, change is much needed but i dont really know how is it possible to make it slowly and paynless. Once people start jumping from fiat to whatever alternative (hopefully bitcoin), process will start slowly (or it already started) and will gain speed as it goes. Once it reaches certain treshold, it will go so fast that most of the common people wont have time to react and alot of value that those people have in fiat will dissapear.

and while we are here and I have a bee in my bonnet

If you are NOT a bitcoin investor below the $200, $400 or $600 level

Why You Feel Poorer

You feel poorer because you are poorer.

http://www.zerohedge.com/news/2014-07-07/why-you-feel-poorer

In the last fourteen years, has your income increased over 50%? If you think it has, has it done so after taxes? Even if it has, you likely have not kept up in terms of inflation.

Government has killed the golden goose and in an attempt to hide the obvious is debauching the dollars. Government tries to hide their own failure with phony statistics and a welfare state designed to placate the masses. Bread and circuses are deceptions not progress.



Cryptocurrency is the eventual likely savior of these "men in suits" irresponsible, negligent (corrupt? probably) and greedy actions.

AAAaaah.. Got that off my chest!

Yesterdays post and today's zero hedge re-post ( to view opinion below the article) on the future of the $

The Dollar As We Know It Will Be Gone Within 6 Years

http://www.peakprosperity.com/podcast/86044/mike-maloney-dollar-we-know-will-gone-within-6-years

http://www.zerohedge.com/news/2014-07-06/mike-maloney-dollar-we-know-it-will-be-gone-within-6-years

Timing may be incorrect but eventuality has a high probability?

Agreed..but....

1 If they know or worse target a 33% devaluation in 20 yrs or 2% per year and fix interest rates at negative  or zero and by printing money and other economic policies that they cause inflation and particularly food inflation

The Real Inflation Fear - US Food Prices Are Up 19% In 2014

https://www.google.com.ph/search?q=food+inflation+2014&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb&gfe_rd=cr&ei=iF66U529JMuE8Qf08IGwAg

and these people are public servants elected by the population and with an obligation to protect and warn from /of issues that adversely effect the electorate. If they do not publicly and prominently warn the public ( like on cigarette packets  health warnings) that their policy is to devalue and the effects that it will have on savers (get out of fiat) pensions, cost of food and utilities etc will lead to loss of purchasing power/standard of living, then they are not fulfilling their obligation and arguably should be party to a class action suit by the electorate for recovery of the billions in losses incurred by those affected parties LOL!!!!!  accompanied with windfall taxes on the financial entities "in the know"  or with preferential treatment that these policies allow to make billions out of almost no assets or assets "created" by the Fed for their use.

inflation/ devaluation of currency is a normal part of the financial cycle and world..the difference is they are targeting it by policy without  the necessary "health/ wealth" warnings to the layman who make up the majority of their electorate and for the benefit of a tiny few financial institutions at the expense of their voters  !!!

What percentage of voters know how or have the means to invest in treasuriy bills to protect themselves?  might I suggest less than 5% or possibly even 00.5%?

This is only an issue if you're treating the dollar as a long-term investment. After all, we're talking about a timespan of 101 years here.
Nobody has their retirement money or investment money in savings accounts. If they have them in government backed securities at all they'll be in treasury bills, whose returns have greatly exceeded inflation. $10,000 invested in a 10-year treasury fund 10 years ago would be worth $17,000 today.

No, it's because he's a 112 years old. He looks like a cadaver. What happened to his lips - they're missing. The guy is rolling in money, can someone please hire a beautician to fix the old mans eyebrows.

me too, he's done it before.
the "bitcoan"