Larry Edelson – The Great Betrayal of 2012

[ErikJ]

I was sent this long spiel by a Neocon. I dont have the knowledge or time to rebutt it. Is it legit or tin-hat?

The Great Betrayal
of 2012

SHOCKING EVIDENCE:
The Obama administration
is CONSPIRING with China’s leaders
to destroy the value of every U.S. dollar
you earn, spend, save and invest.

IN THIS REPORT:
What you must do immediately
to protect yourself and prosper.

http://www.brotherjohnf.com/archives/15882

[asjr]

1. OOh how silly! Everyone knows we are

buying The Great Wall from them.

[Warpy]

2. It's paranoid bullshit, trying to suck what's left of the middle class

into a hyper inflated commodities market because the big boys need someone to leave holding the bag when they get out, or the whole thing will be too obvious.

[westerebus]

3. And not a very good one either.

[mbperrin]

4. China does not wish to destroy the value of the dollar. They hold trillions of them, both in cash

and in debt instruments owed by this country.

Now, if WE want to pay them back with cheap money, leave their dollars worth less to them, we should devalue and radically.

It will have no effect on goods produced here and bought here. It will make imports expensive, spurring domestic production.

I've thought for years that if anyone at the Fed had any sense, that's what they'd do, while keeping quiet.

But if we want to make foreign dollar holders even richer and drive production here down further, a strong dollar is your ticket.

[ErikJ]

5. Could lead to hyper-inflation

Like what happened in Weimar Germany when they cheapened their currency to pay off WW1 debts. And I believe it happened in Argentina 12 years ago. I've heard Argentina is still plagued by 20% inflation.

[mbperrin]

6. Weimar Germany didn't "cheapen" their currency. They added nine zeroes to every bill they had.

They were at gunpoint, and the only reason it mattered to the Germans was because nearly every good was imported as the country had been destroyed during the war. More domestic production solved it. Doesn't matter what the currency trade value is for a currency in its own country that makes products.

And we make lots of products.

What is the net outcome of the Argentinian inflation to the population? The very year and the next six years after the currency peg was removed, Argentina grew at one of the fastest rates in South America.

Have you not read Adam Smith, The Wealth of Nations? The Romans even used this to consolidate their hold.

Debasing your currency to pay off debt is an old and time-honored technique because it works.