THE END OF THE DOLLAR

The "Amero" is coming. The Amero is intended to be the North American equivalent of the "Euro" which has replaced the national money systems in France, Germany, Belgium, The Netherlands, Italy, and other European countries. Reports have been circulated that Amero coins have already been minted by the US Mint at Denver CO, according to witnesses that claim to have seen such coins.

Like the Euro, the Amero will be based on debt rather than on gold and/or silver, i.e., the Amero will be debt money rather than hard money. Like the present Federal Reserve Notes, it will not have any intrinsic value and will have value only thru governmental edicts that will require citizens of the USA, Canada, and Mexico to accept them in payment of debt. This is known as "legal tender" as you can read on any Federal Reserve Note.

So what's the big deal?

The big deal is just how this transition from the dollar to the Amero will take place. It is really very simple. The governments (USA, Canada, and Mexico) simply state that the "old" currency will no longer be legal tender after a certain date and that everyone will need to exchange their dollars (or pesos) for Ameros. If you have a bank account, that will be done automatically. Note: ALL of your Federal Reserve Notes that you hold after that date will become worthless! You will not be allowed to redeem them at some later date.

If you have CASH, then you will need to bring your Federal Reserve Notes to a bank where they will be exchanged for Ameros. The catch is that there will be a record of the amount of Federal Reserve Notes that you brought in, along with your name, social security number, and various other pieces of information to identify you. You know where this information will go and if the amount is deemed excessive, the Infernal Revenue Service will become very interested in your affairs.

America has a huge underground economy that is based on cash. The IRS is not able to collect taxes on most of this underground economy- at present. The transition will be a windfall for the IRS since it will force this underground economy to become visible during the transition and they WILL tax it.

More than that, look for the Amero notes and coins to contain an RFID (radio frequency identification). This will enable the IRS to track ALL of the Amero money in circulation. This technology could make all cash transactions at licensed places of business transparent to the IRS. This means that using cash will no longer be anonymous.

When this transition to the Amero will occur is not known (at least to me) and even the fact that this will happen, is not widely advertised. It happened in Europe and it WILL happen here.

What can you do?

First, you can ride out the transition by converting Federal Reserve Notes to gold and/or silver. Gold and silver will retain their value, independent of any government edict to the contrary. You can buy Mattole coins or you can buy 100 oz bars of silver (bullion). You can buy gold coins or gold bullion. These will be readily convertible back to Ameros after the transition. You just need to do it in small amounts that do not trigger a report to the government. Most dealers in silver and gold will let you know if a report needs to be filed.

Second, you can maintain your cash reserves as silver and/or gold thru and after the transition. Why put dollars into a money market account that nets you 10% when the value of the dollar is dropping at 10% a year or more? And, you have to pay taxes on the "profits." Guess what, you're losing purchasing power, even with a money market account.

Silver and gold are considered a "store of value," that is, they retain their purchasing power. In 1965, the last year that US silver coins were in circulation, you could buy a loaf of bread for a 25 cent piece that contained 0.225 oz of silver. Today, that amount of silver is equivalent to $3.00, which is roughly what you would pay for a comparable loaf of bread today. I.e., the same amount of silver STILL buys the same amount of bread. But the dollar sure doesn't.

Why is the US dollar declining against silver?

The powers-that-be learned from introducing the Euro in Europe, the first step in forming the European Union, that people are very much attached to their own country's money. The Brits and the Swiss, among others, kept their own currencies, largely because the people made it politically difficult for those countries to replace their own currency with the Euro. Americans are quite attached to the US dollar and will only be willing to give it up if they lose confidence in the dollar. As the dollar continues to plummet, not only against silver and gold, but also against most of the world's other currencies, Americans will demand that "something" be done. Lo and behold, the "solution" will be the Amero, linked with Canada whose dollar has appreciated markedly against the US dollar over the past two years.

Make no mistake, this is NOT a solution. The Amero, like the dollar, will be based on debt and will still be created by a privately owned central bank (the Federal Reserve Bank or its successor). The bankers will still create money out of thin air and charge interest on it.