The title of this article I get from Alan Greenspan's statement 10 years ago in front of the American legislature, then he is the Chairman of the U.S. Federal Reserve. In a long debate with an intelligent congressmen (Dr. Ron Paul) - finally 'bandar' fiat money (paper money), the world recognizes that extremists could be in the condition of people do not want to accept paper money, otherwise the gold will always be acceptable.
Extremists Conditions such as what is meant by Alan Greenspan?, Which he meant is the condition where people start not believe with paper money.
This condition also appears to exist in thought 'god' and futurologist American economist John Naisbitt when in his book published last year Mindset he wrote that the last monopoly that will be left of humanity is the monopoly of the national currency (fiat money now.) The human race would leave its domestic money - fiat money has no intrinsic value - and replace it with private money ie real objects that have intrinsic value.
Alan Greenspan and John Naisbitt - two people who are masters at their field, certainly did not make his statement arbitrarily. Condition extremists that they reveal never happened in the history of their country, and likely to happen again in modern times.
In American history have occurred when the debtor's creditors to pursue running to repay the debt, but ran away because the lender would not accept the money would be paid by the debtor. The incident occurred between the years 1775 - 1780 when their paper money called Continental - no price!. It was to the point that there is a barber shop that uses money as a wallpaper (wall coverings) for the money cost about the same as paper wallpaper.
Extremists Conditions expressed by Alan Greenspan mentioned above did not happen today, but the symptoms or the symptoms are already visible. Let you look at price charts Dinar this morning, why prices Dinar (gold price) suddenly jumped sharply early this morning or afternoon American time?.
The cause was none other than the Fed's decision to 'print new money' to buy U.S. $ 300 billion of long-terms Treasury Securities in the coming months. Total purchases of securities by the Fed this year will reach U.S. $ 1.25 trillion.
Every time the government of a country printing money beyond the needs of real transactions, then the money is in the public automatically goes down in value - This is the theory of Ibn Taymiyyah about 800 years ago are still very valid today.
Market who understand the meaning of the actions mentioned above the U.S. Fed, immediately realized that the existing paper money in their hands will continue to decrease rapidly in value. They returned the gold hunt in panic, because they know the only gold was money that never loses it's purchasing power.
Genesis last night was just symptoms of the condition of extremists who could have occurred and may not occur. Same with us when we realize there are symptoms of deadly diseases (eg dengue) in our body, which will carefully see a doctor immediately and to take reasonable precautions for the disease symptoms did not really turn into a potentially fatal disease.
That would let cool until the disease symptoms that there was really come, but when it could be the treatment was too late. Only to God we ask for protection, Amen.
