posted May 18, 2011 07:50 AM            

There were hiccups during the Civil War, and earlier in 1812.
From Wiki:
"
In 1862, paper money was issued without the backing of precious metals, due to the Civil War. Silver and gold coins continued to be issued and in 1878 the link between paper money and coins was reinstated. This disconnection from gold and silver backing also occurred during the War of 1812. The use of paper money not backed by precious metals had also occurred under the Articles of Confederation from 1777 to 1788. With no solid backing and being easily counterfeited, the continentals quickly lost their value, giving rise to the phrase "not worth a continental". This was a primary reason for the "No state shall... make any thing but gold and silver coin a tender in payment of debts" clause in article 1, section 10 of the United States Constitution.
"

Total debt today is 14.3 trillion dollars.

Assuming that only 5% of dollars are actually printed, the total printed currency that by the Law of Karma should be backed up by 24 grams of Silver per dollar is
700 billion dollars.

Hence, minimum Silver required to be bought by the US Treasury is 700 x 24 billion grams or approximately 600 billion ounces.

Total Silver mined every year is around 600 million ounces, including Industrial usage.
Hardly anything extra is left to buy by the Treasury.

Total Silver estimated to be available in the hands of banks and investors is around 5 billion ounces [optimistic calculation].

This can be bought. To make up for the difference, the value to be given is 600/5 or 120 times the current price of Silver [varies between 30-35 dollars an ounce]

This value has to be given in terms of gold or real estate.

So the true worth of Silver in terms of the inflated dollar is nearly 3600 dollars an ounce.

As per the Law of Karma, this fair price has to be reached some day or the other because of the 1792 dictum, and we are not getting into the 95% extra debt which is not accounted for in printed currency. The Law is broken when the Constitution of the United States is defunct.

A 3000 dollar paycheck in reality is just an ounce of Silver.

So each and every American, do justice to your Self. Buy an ounce of Silver with every monthly paycheck to protect yourself against the ramifications of hyperinflation.

posted May 19, 2011 04:30 AM            

Gold will be more stable, not more than 5% either way.

Property is good only if it is fertile agricultural land with abundant, potable, ground water. It is an utter waste to buy flats, built up villas etc etc.

posted May 25, 2011 12:26 AM            

IQ Can you please elucidate as to why according to you built up structures are such a wasteful lot?

posted May 25, 2011 04:44 AM            

Lets say you buy a flat for $100,000.00

Registration cost is $10,000.00

In 5 years, maintenance costs tally to $6000.00

Cost of capital in 5 years is $60000 compounded, plus you lose another 1000 dollars on the cost of capital of the maintenance amount.

So to get a healthy return of 10-12% per annum after 5 years, your flat has to sell for

100000 + 60000 + 7000 + 100000 profit or $267000.00

Minus of course the rent if any, and these days rents are not even 3% the value.

Honestly, is that going to happen when new apartments will be available for 120K-130K?