First Deflation, Then Inflation, Then a Gold Dinar?

http://www.jbs.org/index.php/inflation-taxes-economy-blog/3677-first-deflation-then-inflation-then-a-gold-dinar

First Deflation, Then Inflation, Then a Gold Dinar?

Written by Jim Capo, The John Birch Society, 24 October 2008


The debate over whether we will have inflation or deflation has been answered: First deflation, then inflation - and both may be on a massive scale.

Debt-based money is being destroyed by credit contraction led defaults. On the real accounting books, not the ones used to produce government statements for public consumption, the amount of dollars being destroyed currently exceeds the amounts of new fiat dollars coming into the system. Basket cases for the last few years, the US dollar, and to an even greater extent the Japanese Yen, are zooming up against all other fiat currencies, oil and gold.

In an environment of both de-leveraging and deflation, rather than launching a new wave of money creation to free up frozen credit markets, the FED and its co-conspirators are currently buying up distressed companies and properties with their new bailout bill credits.

The endgame looks like this: After they have acquired full ownership and title from the weak hands of leveraged debtors who built their portfolios on margin and cheap credit, the serious new money creation will commence.

Those who will have just completed scooping up ownership and control for pennies on the dollar, will turn around and pay off their own new debts they took on in the process with inflated or even hyper-inflated dollars. It's good to be king.

One monkey wrench in the system could be the Arab dictators we have been propping up and the communist Chinese central bank made rich from all the manufacturing companies we helped create under its control. Together, this team, if they are not totally in league with the criminals who set this mess up in the first place, might decided to create a new monetary system sans the USD.

There is no honor among thieves.

Could a world reserve currency like a gold backed Dinar be in the works?
Judge for yourself
http://www.gold-eagle.com/editorials_08/willie102308.html