Dear Old Reliable,
The tenor of my remarks was unintentionally exaggerated.
I was thinking in terms of pre-1971, in which the US could simply lower the amount, or weight, of Gold or Silver, that the US Treasury, in theory, would repay for one US Dollar. So you are correct that the US cannot simply devalue the US Dollar, by a policy decison, on a single day. I therefore retract the concept of a US Government devaluation of the US Dollar at a set date or time.
However, over time:
"It is clear U.S. economic 'policy' actually encourages a continual devaluation of the international value of the very currency in which its citizens earn and save - - the U.S. dollar. It is clear this 'policy' transcends both political parties. What is this policy: it is one that encourages consumption (instead of savings) beyond the earnings and beyond ability to manufacture its own goods - - meaning it encourages expanding debt and assets owed to foreign interests, and it does so by pushing extra low interest rates to encourage debt based consumption and inflation"
Grandfather Foreign Exchange Rate Report - summary page - by MWHodges
As Illustrated:
Inflation Continues:
Grandfather Inflation Report - by MWHodges
US Dollar savings are eroded by increasingly higher US government debt:
America's Total Debt Report - summary page - by MWHodges
and US Dollar savings are eroded by artifically low interest rates set by the US Federal Reserve:
"Beginning in 2001, the Federal Reserve reduced short-term interest rates 13 times, dropping the federal funds rate 84% (from 6.5% to a 1% rate, the lowest in generations) and injected massive amounts of liquidity into the monetary system - - all aimed at subsidizing existing debt in all sectors, and promoting even more debt, much more debt - - believing that the U.S. economy and its government cannot function without more and more debt injections, just like a drug junkie needs higher doses each week.
These actions devastated interest income from savings upon which seniors depend to pay their cost of living in food, property taxes, prescription drugs, dental care, etc. Such causes health and economic angst for many seniors. (Although the funds rate moved to 2% recently, its still down 70%)."
FSO Editorials: "Financial Terrorism Against Seniors" by Michael W. Hodges 11/20/2004
Michael W. Hodges
Grandfather Economic Report - Home Page - by MWHodges
I looked for info to discredit Michael Hodges, but just found quotes for his authority.
Market Traders Report.
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