Red Money

This is the stuff of conspiracy theorists but if you told me in 2008 that the US government was (a) going to take control of the auto industry, (b) financially wipe out all stockholders and bond holders of the then private US auto companies and then (c) give the remaining value to the labor unions-- I would have thought you were a conspiracy theorist because of the US Constitutional protections against "unreasonable search and seizure".

Now for more...  One of the provisions of the new United States Healthcare laws is that starting January 1, 2012; all purchases of precious metal coins and bullion over $600 must be reported to the Internal Revenue Service. I am sure you can immediately see the direct relation of precious metals trading with a national healthcare program. This was buried in the 2,000 page plus piece of legislation that no one had the time to read before they voted it into law.

And more...  In the financial regulation reform bill just passed, another law was added that allows certain bank holding companies to freeze the money market funds (nothing in; nothing out) if the banks believe that sudden, unexpected money flows put the institution at risk. Risk to be defined by the banks themselves or the newly created financial regulation czar. Click here to recall my musing about US Czars.

Finally... The last leg of this positioning move is still open for public comment. But basically the plan is to confiscate the $4T in privately held pensions, pool it, and pay back to all retirees (those with and those without pensions) a fair monthly pension based on what some politician thinks is fair.

This is all positioning for Red Money.

At some point in the future, US currency will be changed from green to red.  You will have some period of time (say 3 months) to convert all your green currency to red currency.  This has two purposes:

(1) An estimated 1/2 trillion green dollars are suspected of being trapped outside the US, held by criminal elements both in the US and abroad as well as by ordinary people just keeping cash "off the books".  If you don't want to expose yourself by making a cash transaction greater than $7,500 in a bank and alert the Internal Revenue Service you are going to spend the money on something.  This is automatic 500B of economic stimulation forcing the world to buy US based goods and services.

(2) When only red money is left, the US Government will devalue it by about 50% thus wiping out half of the country's debt with the stroke of a pen.   In US history, devaluation has been done already at least 2 times on a very large scale, once in the 20th century alone by president F. D. Roosevelt.