Ted: Here's my guess, based on some study (but I could be wrong): I think at some point the US dollar - like all other currencies that have been debased (see The Greatest Wealth Transfer in the History of Mankind Starts Now! for some amazing charts that tell it all) - will experience high inflation.  Right when there are signs of hyperinflation, I think the US government will one day announce that something else will replace it in X number of days - similar to how the EU gave Euro Zone countries a couple years to do this before deadline of Jan. 1, 2002.  After that day, French Francs, Italian Liras, etc. became worthless.  People will race to the banks to exchange their dollars for dollar #2 (some people say it will be called the Amero, but I don't know.)  I think it will be done in an orderly fashion, but also deceptively, so that most people think it's going to be a strong replacement, when it won't (unless it's backed by gold or silver - which I doubt, since the US no longer even takes inventory of its gold and has no more silver.)  Jim Rogers says he's planning to have zero dollars by the end of 2009.  I think it's good to follow his lead - whatever currencies and assets he chooses.  Remember, gold coins are good almost anywhere.  Silver coins are probably good in most places in the US.  

Jay: My bottom line on the Amero: If you think there is a firestorm in Congress over the bailouts and stimulus, just propose a new currency for the US, and you'll grid lock the Congress for months. Talk about confusion and controversy, the whole world uses the dollar as a reserve currency. We're already on the verge of chaos in the currency markets. That would freeze them up solid. We don't need a new currency. All we need to do is obey the Constitution, and the dollar will return to fulfilling the purpose for which it was created - stability and confidence. If the dollar were sound, Canada and Mexico could use it just as well as some new currency. They already use it extensively anyway, and it's a terrible currency. I actually believe there's a greater probability we'll take steps back toward following the mandates of the Constitution regarding our currency than creating a new one. I'm hearing it more every day from many knowledgeable people. Every time in the past the people have sensed debasement of the currency, they have rushed out of it, forcing action to defend it. That could be exactly what we're seeing in the gold and silver markets now, the early stages. You'll have plenty of time to convert your dollars (Rogers is in no hurry). They would create total chaos if they tried to prevent or control it. The currency markets are the largest financial market on the planet, by far. The power of the US government, the Fed and the central banks, all combined, are minuscule compared to the power of the world-wide currency markets. I love Doug Casey's analogy. When people around the world sense destruction of the purchasing power of the dollar and begin trying to exchange them for precious metals or other real assets, it will be like trying to put the water in Hoover Dam through a garden hose. Right now people are doing the opposite. They are hoarding dollars, but we may be seeing the early signs of a change. It should be something to behold.

Ted: Article 1, Section 10 of the US constitution states, "No state shall ... make any thing but gold and silver coin a tender in payment of debts ..." (1787)  The Coinage Act of 1792 established the dollar as the basic unit of account for the U.S., with 1 ounce of silver equal to 1/15 ounce of gold.  It also declared that violation of this was a felony punishable by death.  Thus, I think it is very unlikely the US will ever go back to the original constitutional definition.  Also, the US has loaned out much of its gold and no longer publishes an inventory count.  Some people speculate that there is not much gold left in Fort Knox.  On the contrary, other countries' governments are hoarding gold.  Furthermore, since the 9 1 1 tragedy was like a second Pearl Harbor, the US has gotten into an endless Mid East war to further American interests, and it has also been re-doing the US Constitution.  Examples of legal changes are wire-tapping becoming OK (remember Watergate?), and anyone remotely suspected of "terrorism" can be detained indefinitely without a warrant. So the trend is to move away from the US Constitution, not back towards it.  I think it's all part of the end-times deception mentioned by Jesus in Matthew 24, Paul in 2 Thessalonians 2 and John in Revelation.  The fraud of fiat currency has just been a stepping block towards a global electronic currency using RFID chips implanted in people's hands or foreheads (see Revelation 13.)  Many animals are now required by law to be chipped, and some humans are voluntarily being chipped already.  The technology today for controlling commerce and people would have thrilled people like Hitler, Stalin and Mao.  They had to do most things manually.

Jay: By "obey the Constitution," I did not mean to imply we would return to the original definition of money to which you refer. I used a poor choice of words without clarification. What I mean to suggest is that we take a step, or series of steps back toward the Constitution. Here are some of the suggestions I have heard or read about. Devalue the US dollar and make it convertible into gold at somewhere between $3,000 and $10,000 per ounce (Maybury, Gerbino, Dalio). Establish a gold cover clause setting an agreed upon ratio between the total monetary base and the number of ounces of gold held by the Treasury (Sinclair). Raise short term interest rates on the dollar to a level which would motivate citizens to hold and save dollars (Volcker in 1979). Certainly I do not know how likely any of these are to occur, but if they did, I wouldn't worry about the Amero, or the Federal Reserve for that matter. According to Rogers, four central banks in the US have been previously abolished in our brief history as a nation. I get the feeling our present one is on its last legs.  For some thoughts on this, and the best summary I have seen to date on where we're headed economically, I highly recommend the following article by Doug Casey: Doug Casey on 2009: Another Year of Shock and Awe
  

Part 2 (posted February 17, 2009)

Ted: It seems that basically we are saying almost the same thing except you think there is hope for a turnaround in the dollar while I am more inclined to think it's days are numbered. Do you agree?

Jay: Yes, to an extent.  I believe the dollar will one day become worthless, like all other fiat currencies. I believed this thirty years ago, and I have lived to see the desperation, panic moves they take in an attempt to prevent total destruction of its purchasing power. That's what I' saying. There are several things they can try. I mentioned the ones I think most likely. Roosevelt devalued the dollar against gold. I understand Obama has been studying Roosevelt. Maybury, Dalio, Casey, Sinclair, Russell and others have mentioned the likelihood of such a move. If they do nothing, the gold market could easily do it for them and force them to acknowledge it.

Ted: Why do you see the recent drastic moves solely as attempts to prevent total destruction of the dollar? Although the leadership and media portray the moves as moves of desperation and panic to avoid collapse of the banking system, are there not darker forces at work? If the international banking cartel has immense capital saved up from centuries of stealing from hard-working people through inflation, wouldn't it be more likely that what we are seeing is actually a planned demolition in which Bernacke, Paulson, Bush, Obama and Geitner are just pawns trying to do their job as best they can according to the Keynesian economic model they were taught (thanks to the international banking cartel)? Also, the gold standard has been gone in the US for over 37 years, and this has allowed the international banking cartel to have even more leverage to print money and spend it to gain control of governments and institutions around the world, so why would they want to remove that lever? Do you think they are satisfied that they already have enough control in the world so that they feel it's safe to bring back gold into the equation? i.e., has the era of fiat currency enabled them to gain total economic control, so that now all that remains is the finishing touches on total political and spiritual control?

 
Jay: The gold standard is officially abandoned, but in truth, the gold standard is alive and well as it has been since God created gold in the earth's crust to serve as a standard for honest money. Gold is $941 and likely well on its way to at least $2,000, likely more. It has already outlasted 10,000 paper currencies, and my guess is it will outlast the dollar as well. If a billion or so people decide that gold is a store of wealth, a few conspirators won't change its role.
 
No man or group of men will ever have "total political or spiritual control."  There are two forces at work, God and evil. The contest isn't even close.

  
I'm optimistic about the future, not pessimistic. The conspirators will either self-destruct or God will destroy them. How far they get with their one world government plan, or one world currency plan, I have no idea, but however it plays out it will be in our best interest. That's my focus. Does it affect how I allocate my portfolio? Well, I think to some extent it does. I have faith that God is leading in our investment program. Since He knows and determines the future, I'm not inclined to worry about it.
 
Ted: Of course God is ultimately in control of all political happenings (Isa. 46:9,10, Rev. 17:17), and a billion people acting in unison should be able to effectively bring back some form of gold standard. However, out of 6.8 billion people alive today, probably only a few million have gold and silver on their radar, since most or all governments no longer use gold and silver, and since most or all economics courses do not teach economic history as you briefly mentioned.
 
I believe that ultimately, gold and silver will be of value in the end, according to Dan. 11:40,43, Ez. 38:8-13 and Zech. 14:1,2,12,14. The question is timing, and today, the question is how the dollar will fit into the story.
 
What I meant by total destruction was total destruction of the US dollar and the US banking system. People are saying that if bailouts are not made, the entire financial system will collapse. To some extent, I believe this is a correct analysis. I agree with Jim Rogers in principle - let the bad banks die - but I don't think he is fully aware of how fragile the system is. Here's why:

1. It's global. This is unprecedented. The 10,000 other paper currencies were mainly local. For thousands of years, gold and silver were the global reserve currency. Today, though, most people are unaware of this. Gold and silver are off the radar for normal people. Governments know it, but many are stuck with US dollars or US bonds, and dumping them now would be tantamount to shooting themselves in the foot or maybe in the stomach.

2. It's electronic, so exponentially more transactions are made, they are made much quicker than most people imagine. This makes it more fragile and also more vulnerable to fraud.

3. It's addictive. The system is like drugs. The addict thinks he needs more to satisfy the hunger. There's no outside sober man to hold the system down while the addicted man goes through withdrawals.

4. It's all or nothing - like a gigantic Ponzi scheme - when money stops coming in fast enough (in this case, fiat money off the printing press), the system collapses, so the input of more fake money must accelerate to keep it going. That's why the numbers keep growing. The whole system is based on debt, not value, so debt must increase.

Assuming that the banking cartel knows all this, the question is why they would be printing money so dramatically lately and why would they be manipulating the gold and silver prices to dramatically lately? I think we agree that based on the Bible and our experts, gold and silver will go up eventually. My question is: has the time come when the banking cartel is ready to let this happen? Has 37 years without the restraining force of gold as a fair measure of value (and 43 years without silver) been enough for them to rob the world and consolidate its power? Based on what I've read and heard, I think it may have already been enough time. But I don't know if the dollar will be necessary for their future plans. We'll see.
 
The point about the total control is that it's more than an economic issue. It's spiritual. The entire system is evil (Eph. 6:12, 1 Jn. 5:19). I believe that just as the Emerging Church is a form of end times deception and control, so the banking cartel is a form of end times deception and control. If these guys can control what people believe and control their money and spending habits, they effectively control the people. In the end, only the supernatural power of God will protect His people from being swallowed by the system. I'm concerned that too many people do not see the spiritual element in these things. If we are all born in sin and all have deceitful hearts (Ps. 51:5, Jer. 17:9 and Rom. 3:10-18), why would we think that those in national or corporate leadership positions are not carrying out the devil's work - even if they think they are doing good things? I believe that the basic problem is that most people do not believe the Bible, God's standard for right and wrong, and they don't believe they need to beg God for mercy due to their violating God's standards. A lot of people want to believe that man is basically good and only a handful of people are evil. They are willing to continually redefine right and wrong on their terms, and they don't want to believe that some world leaders actually plan things like financial crashes, Pearl Harbors and wars, especially if they voted for them. From a practical viewpoint, what we don't know can hurt us, so it seems in our best interests to know and discuss these things.

Jay: Thank you for persevering on this discussion. I read your last offering three times and looked up all the Scriptures. In my opinion your reasoning is sound and Biblical, and your four numbered points are valid. Any counterpoints which I might come up would be inappropriate. I thought your closing paragraph was especially good.
 
Then why would I add anything? For one reason only, to answer a question borrowed from Francis Schaeffer, "How then should we live?"
 
It's really my personal answer to that question in light of the truth you have presented. It's nothing more than disclosure of a few passages which came to my mind as I read through your material. It may or may not be of some value to some of our readers. It is extremely meaningful and encouraging to me. It could be a message we badly need at this particular moment in history. 

Heb 13:6: "So we say with confidence, 'The Lord is my helper; I will not be afraid. What can man do to me?'"
 
This is high on my list of favorite passages. I draw the inference from this verse that no man, or group of men can touch my life except by permission from God, under His control, and with my best interest in His heart. To me this verse implies that it is a sin to worry. And every time I think of the verse (which is often), I think of other favorite verses which demonstrate that other people have reached the same conclusion.

Joseph said to his brothers, "You intended to harm me, but God intended it for good to accomplish what is now being done, the saving of many lives" (Gen 50:20). 

After Laban manipulated and cheated Jacob for twenty years, God said to Jacob in a dream, "....for I have seen all that Laban has been doing to you" (Gen 31:12). God monitors and controls everything any person is doing to us. The outcome, no matter what it is, will always be in our best interest.
 
A verse which has fascinated me for years is Jude 9, "But even the archangel Michael, when he was disputing with the devil about the body of Moses, did not dare to bring a slanderous accusation against him, but said, 'The Lord rebuke you!' Yet these men speak abusively against whatever they do not understand by instinct, like unreasoning animals - these are the very things that destroy them."

What a great example is Michael's to follow. Evil men sooner or later self-destruct or God destroys them. We can pray for their salvation, or God's rebuke, or both. He'll do the best thing.

One last passage. Phil 2:10-11, "that at the name of Jesus every knee should bow, in heaven and on earth and under the earth, and every tongue confess that Jesus Christ is Lord, to the glory of God the Father."

I believe the following inference can be drawn from that passage: When we stand in eternity and look back at our earthly lives, we will not regret a single circumstance of our lives (including suffering, tribulation and death). Our only regret will be our own disobedience and lack of faith. 
 
These are some of the passages that keep me going. Being reminded of them and reinvesting my faith in them on a daily basis is one of the greatest blessings of my life.

Ted: Thanks, Jay. Very good words. 
 

Further study:

• The Case for the Amero (The Fraser Institute, 52 pages, Sept. 1999)

• America: Freedom to Fascism (Video, 1 hour, 51 min.)

• Amero Coming Within A Decade (World Net Daily, Oct. 5, 2007)

• North American Union, the Amero, One World Govt. and RFID Chips (YouTube video, 9 min.)
    

• A Short Physics Lesson on WTC7 - It was a controlled demolition (YouTube video, 9 min.)

• WTC Internal Explosions and Witnesses (YouTube video, 10 min.)

• Loose Change Final Cut - Evidence of an Inside Job (Video, 2 hours, 10 min.)

• Beijing Skyscraper Fire: The Silence Is Deafening (Infowars, article and short videos) 
    

• 10 Signs That Jesus Is Coming Back Soon (brief article with links)  
    

• I.O.U.S.A. - the Movie (30 min. video)

• Some Little Known US Central Bank History (10 min. video)

• The Biggest Scam in History (US banking history they don't teach in high school)

• The "New World Order" Silver Pieces are Here (Jason Hommel article, Feb. 17, 2009)

Jay O'Keefe is a retired investment consultant.  Ted Spaeth is an English tutor.