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" using a dataset for 108 emerging and developing economies for the period 1960-2006. We provide estimates of how these episodes affect growth and output trend. Our main finding is that currency collapses are associated with a permanent output loss relative to trend,.."

"Fiat Money -Toilet Paper Money..
The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well."
Read more: Fiat Currency

Fiat Money History in the US
"The United States has so far avoided hyper-inflation by shifting between a fiat and gold standard over the past 200 years."


History of money

Thanks ConnectingDots for this info.
So....How was the USA able to avoid the dollar collapse for so long now?

Answer: Lindsey Williams said we promised the OPEC nations in the 1970s that we would not produce oil from our own reserves and that we would only use them as long as they promised to only use US Dollars to buy/sell oil to the world. That meant that the whole world would need US Dollars in massive amounts. This is how we've been able to outlast the "normal" period it takes for a devaluation to occur.

This also explains why the "American Lifestyle" has been and WAS superior to all other countries. Our dollar was the most powerful because of the reason above. We've been riding the coat tails of our government and now it's time for them to "make good" on the check that was issued 40 years ago and we're finding out that the check cannot be cashed. How much do you want to bet that our "American Lifestyle" is about to change for the worse? Remember George Bush Senior saying to the whole world on national tv "The American Lifestyle is non-negotiable" and hearding the thousands of people people behind him stand up and cheer as if their favorite team just won the superbowl? I'm going to make George Bush Senior a bet right now. I GUARANTEE you that the American Lifestyle is VERY NEGOTIABLE and you're about to find out how much of the negotiation is NOT in out favor. We use 25% of the entire world's resources, that alone should let you know there's a major problem and that it could never be sustained.
great find!
fix it again tony...
Well, my understanding is that what is different this time is that all globalist countries are now fiat. This includes all major economies. This deal was created by Nixon and world leaders of the era. Yes the deal for purchasing oil using USD is accurate, but that actually wasn't to keep it from collapsing. The fact that g20 are all fiat is why it has lasted. International commerce is a major reason for holes getting poked in the system. Even the pound sterling is fiat now, which used to be worth 1 pound of sterling silver. The fed and bankster abuse of the fractional reserve system, m3, credit, and derivitives without telling our global partners - and worse still selling them the derivitives - is why the world economy is so jacked up.


(03-07-2011 07:29 PM)12gaugeangel Wrote: [ -> ]Well, my understanding is that what is different this time is that all globalist countries are now fiat. This includes all major economies. This deal was created by Nixon and world leaders of the era. Yes the deal for purchasing oil using USD is accurate, but that actually wasn't to keep it from collapsing.

actually yes, this is what kept it from failing as once that deal was signed all of the world's developing nations/countries suddenly had to start procuring USD and since oil is the world's largest traded commodity ALL had to buy USD which immediately help give all nations currencies because as mentioned once the USD was un-pegged from gold then automatically ALL currencies became Fiat. Also by looking at the USD chart history you can clearly see the time line fits.

Many nations had very strong ties with gold and many of them still do but when the USD was un-pegged so was the confidence...however once the deal was signed the USD became the world's most sought after currency...which leads us to our next problem,which is exacerbated since ALL countries have had to procured themselves USD then it stands to reason that most USD are held out of the USA and that is why when the USA's credit PoPs...everyone will PoP also as most of these same countries have seen growing exporting numbers since the USA has had it's currency "Boost" along with it's Big credit bubble either directly or indirectly from others who have...the fiat monopoly game is soon over and those holding REAL assets will do much better than paper notes.



With gold market outlawed, Vietnam bans dollar market
Submitted by cpowell on Thu, 2011-03-10 13:34. Section: Daily Dispatches
Vietnam Moves to Ban Dollar Trade

By Phammuoi Nguyen
The Wall Street Journal
Thursday, March 10, 2011

Vietnam shares ended higher, with buying across the board, after authorities intensified efforts to ban U.S. dollar trading in the free market, including the seizure of some individuals who were trading the dollar without permission.

Traders and bankers in Hanoi and Ho Chi Minh City said gold-shop rates fell as well following the moves.

State-run Vietnam Television late Wednesday reported that police arrested four people in Hanoi in connection with a transaction involving the exchange of $400,000 for 8.5 billion dong.

"More players are switching savings from dollars and gold into the dong funds after police forces have announced that they will arrest anyone who trades dollars outside the banking system, and will confiscate those dollars. The move has brought great benefits to the stock market," a Vietcombank Securities trader.

Bankers said they expect gold-shop rates to continue falling throughout the day as people sell the dollar amid concerns authorities will increase steps to ban its use.

Volume was average at 46.2 million shares valued at 977 billion dong ($46.8 million). Among the most actives, Meco ended up 4.1% at 15,300 dong, Vietinbank closed up 2.7% at 26,500 dong and Saigon Securities finished 4.7% higher at 22,400 dong.

Traders predict more gains Friday, and tip resistance for the key index at 490.



Hey Beavis....He said "Dong" haahaaahaaa
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