Here is an interesting question and I would love some answers.

First go here and look at the picture:  http://www.deceptiondollar.com/6/6front.htm#

Now here is the first question. You put an ad in the paper advertising a baby crib for 30.00. I come to your house to purchase the crib and give you an IOU for thirty dollars. Question will you let me leave with the crib?

Probably not after all you don't know me and what guarantee do you have that I will pay you the 30.00.

Yet if I come to your house and give you 30 one dollar bills you will take it and I walk with the crib.

Now it gets interesting. I got the crib and you have 30 IOUs. That is right 30 IOU's. You wouldn't take mine but you took the governments and believe me they are far more untrustworthy than I.

Now you go to the grocery store and buy 30.00 dollars worth of groceries. You give them the 30 one dollar IOUs and they take them. This goes on an on but the last and big question is who gets what?

When are the IOUs paid? With what? or do we just keep trading IOUs?

Interesting Yes? Do you see how this can not continue. Value must be exchanged for value not a piece of paper not backed by anything. Having read Griffins "The Creature of Jekyll Island" I imediately decided that the best thing I or anyone could do is get rid of those dollars and exchange something worthless for something that does have value. I found that gold and silver was a good bet. The millionaires and billionaires did that too and added land and real estate to the equation. They are still doing it. I bet what Kenneth Lay did with that 60 million he stole did that too and maybe some of it was traded for some other currency and placed in a foreign bank.

My thought for the day.

Grin

This is an excerpt from The Daily Reckoning, 1-8-04 issue:

We are still peeking out at the year ahead. And oh la la...  what do we see!

"Legalized embezzlement on a monstrous scale," says Clive Maund. Mr. Maund, whose ideas we received mysteriously by Internet, refers to America's great dollar devaluation.

The more we think of it, the more devilishly elegant and marvelously scummy it is -- the fall of the dollar, that is.  It
wipes out trillions worth of debt...  with no bankruptcy proceedings, no lawsuits, and no backlash from the voters.

While it makes Americans poorer, they hardly notice; the immediate loss is taken by someone else. It passes the loss from American debtors to foreigners who were dumb enough to take our I.O.U.s.

The big story for the last half a century...  which reached its climax under the administration of George Bush the younger... has been the rise of the consumer economy, the growth of government and, especially, the build-up of debt in America. Consumer debt, government debt, business debt --  mortgages, credit cards, equity lines, derivatives, GSEs, bonds, I.O.U.s...   you name it.

"Americans are carrying more debt then ever before, and are behind payments in record numbers," says the New York Post.  Debt averaged about 130% of GDP for many decades.  Now, the figure has grown to more than 300%.  A figure we saw this week put it at 360%.  The lumpen voters and dead-head investors may fantasize that current trends can go on forever -- that we can pile up debt like trash during a garbage strike...  and never have to haul it away -- but no serious person would think so.

Sometime soon, we suspect, the mound of rubbish will start to stink. Then, the story line will reverse. Instead of wondering how we will add to our odoriforous debt, the dramatic question will be: how do we get rid of it.

We read the leftist press occasionally -- for laughs and horrors. We find George W. Bush universally portrayed as the devil himself -- an 'ultra-conservative cowboy'... who is "dismantling the New Deal" in order to make the world a chummier place for his capitalist friends. We chuckle... gasp for air... and wish it were true. But the poor socialist schmucks haven't a clue. Bush has come to praise the New Deal, not to bury it.

In less than 2 years, he shuffled out so much loot, he turned a modest surplus into an extravagant deficit... a turnaround of $9 trillion dollars! He doubled the rate of government growth -- so that Federal expenditures are getting dealt out 4 times faster than the GDP growth rate.  And he's managed to issue so much new debt that the Congressional Budget office projects a national debt of $14 trillion in 10 years... with interest alone of nearly $1 trillion annually.

And he's done all this while lowering taxes.  Here again, we admire the blinding, polished gleam of it.  For now the burden of supporting the U.S. government's project falls neither on the rich nor on the poor...  but on the honest simpletons all over the world who were attracted by the shine of the world's most dynamic economy...  and naive enough to believe its promises.

Our head spins.