Rumor: New Dollar - currency devaluation coming?

[pmbug]

This trick has been played many times by numerous countries throughout history.

... Some caution must be given concerning Bob Chapman. He is bold and intrepid, but half of his shocking calls have been nothing more than hot wind that passed to the desert hills. For three years, he has been warning of bank shutdowns and bank holidays. The Jackass has expected them eventually, but Chapman gave at least three such wrong calls. He has been alarmist at times, but his calls are surely contingency plans in the shadowy conference rooms where the elite meet and the security agencies map out logistics. At times Chapman seems to lack some comprehension of practical implications. But he does have some deep sources. The best approach for this information is to plan on it in the future, but that door might not open for some time. The timetable will be dictated by events, which are unquestionably turning more toward chaos and disorder.

http://chasvoice.blogspot.com/2011/11/new-us-dollar-is-underway-reports-bob.html

 

[dontdeBasemebro]

In order for the devaluation to occur the government would have to declare and exchange rate between current and new dollars, and then collect (confiscate) the old ones, no?

Also, how would this impact digital money?

 

[pmbug]

The latest example I can remember was Belarus in May of this year:

http://www.businessweek.com/ap/financialnews/D9NEI5BO1.htm

Currency devaluation in this manner would be an extreme measure and I don't believe that we are close to this happening here in the USA yet. Definitely not as long as the Dollar is still trading as the world's reserve currency. I did mention it though because I don't doubt for a second that this is a possible contingency plan. Fiat risk everywhere you look.

 

[dali lambone]

do you guys think that making a controlled devaluation such as this reduces the chances of an uncontrolled hyperinflation?

 

[pmbug]

Controlled devaluations like this are usually implemented in response to uncontrolled hyperinflation.

 

[white&yellow999]

Although this channel on Youtube just uploaded this video, it was actually recorded back in December 2009. I actually saw this about a year ago. Although the time frame may be inacurrate this could happen sometime in the near future. Figured I would post this to show you that video has been out for a while. If you click it, you can go to the Youtube page.

 

[pmbug]

lol. Thanks.

 

[mmerlinn]

If you have ever served in a war zone like I have (Viet Nam), you know exactly how things like this take place. I went through 3 currency exchanges when I was in VN. The same scenario would be in play here, just that the numbers and currency would be different. Instead of 1:1, it would be something like 10:1 or higher with a limit on how much you could convert, most likely 10 grand. And if for some reason you were unable to convert, you lost all value.

And things like this always occur on weekends or holidays, never during the week.

 

[escobar]

Have not watched the video yet but the thesis sounds consistent with what Brodsky from QB proposes how it will play out. I'll post the link to the paper below, truly great work. Basically to get out of all the debt quickly you devalue the fx and thereby eliminating that % of debt you had. and its very quick. these guys were all ex bond traders so they know the mkt.

http://www.ritholtz.com/blog/2011/04/apropos-of-everything/