With gold and silver on the move along with stocks, today King World News interviewed legendary James Dines, author of The Dines Letter. Over five years ago James Dines said to me in an interview that before this cycle ends all fiat currencies would go to worthlessness. This was an amazing call on his part because within months of that interview we began to see competitive currency devaluations erupt. When asked about the collapsing purchasing power of currencies, Dines stated, “It started with Japan. They pushed the Yen down against the US dollar so they could compete more aggressively. I said this would be a game of competing currency devaluations because other countries say if we make our currency less valuable that means we can sell more stuff overseas.”
James Dines continues:
“So other countries began doing it and finally America began doing it. President Nixon let the dollar float, the dollar plunged and suddenly America became competitive. The whole world is doing it now. What I previously labeled the currency devaluations is now in its final stages.
Everybody has interest rates as low as they can. Japan has been buying up a lot of dollars and if the dollar crashes they are in really big trouble. So it’s a mess.
Currencies are the lifeblood of the system. If the currency is corrupt then everything that currency touches is also corrupt. That’s what’s really bothering the world and this is why you are getting all of these riots in different places. It’s all part of the same phenomenon, it’s the currency. They don’t get that it’s one organic whole, one organic expression of the currency being embezzled by printing too much money.
One of the functions of money is storing value in it. Once you save money you have capital and that capital must be represented honestly. If they print ten percent more money overnight, they have literally stolen ten percent of your capital. It’s that stealing in the currencies that is eviscerating the world right now.
“Now it takes two or more and they still can’t do it. That’s because the money, the governments are stealing it. This cannot end well.
All of these paper currencies have no intrinsic value and they are only as good as the government says they are. The currencies are like a bunch of staggering drunks, arm-linked and when one falls it's going to drag down the whole bunch.
This happened in the 1920s in Germany. They ran out of gold and had to run the printing presses and wound up with a hyperinflation. That is one of the worst calamities to befall any country. We are at risk now of seeing that happen again. You need to figure out how to survive and how to protect yourself (in that environment).
The result of all of this is that gold is going up. Gold is the one way you can really tell what is happening because gold has no counterparty risk. The government can’t control it, they can’t print it, they can’t create it. The only thing they can do is steal it and sometimes the governments even steal the gold from the populace.
Every time gold has a pullback or a correction, they say, ‘Well it’s over, it’s a bubble. It’s useless.’ Gold is not useless. It forces (over time) budgets to be balanced or else there is a penalty.
During this recent drop gold went down from nearly $2,000 an ounce to about $1,600 an ounce and they said, ‘Well, it’s a crash, it’s over.’ No, it’s just a violent correction and you are going to get more of these as we move higher and the coming currency devaluations that I’ve been warning about for years finally expresses itself.
What happens will depend on whether governments try to print more or whether they come to their senses and either repudiate the dollar and come out with a new currency backed by gold. You need to prepare for it and you need not to be concerned about these pullbacks in gold because there is only so much of it in the world.
The people who own it (gold) own the ultimate money and they don’t have to depend on anybody else.”
This is a wide-ranging interview with one of the great ones you don’t want to miss. The KWN audio interview with James Dines is available now and you can listen to it by CLICKING HERE.
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