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12:59 AM Mon, Feb. 18th

Letter: Protect yourself as dollar plummets

On Labor Day, Bloomberg News ran a story about a report released from the United Nations Conference on Trade and Development, which stated that the dollar should be replaced as the world reserve currency by a new, unannounced, reserve currency, and controlled by an unidentified global financial institution.

On Sept. 6, London's Telegraph reported that China is worried about the course of action the Federal Reserve has taken by printing money to buy bonds. China is worried that the dollar will fall hard due to this massive inflation of the money supply. The Chinese government spokesman went on to say that China is buying gold to diversify out of the dollar. On April 5, I wrote a letter mentioning gold and silver. As of Sept. 7, gold has moved from $880 an ounce to $999.80 an ounce, and silver has moved from $13.25 to $16.48 an ounce. So what? What does that mean to me?

Well, it means the dollars we use to pay for groceries, rent and utilities will have even less buying power. I know that is hard to believe, considering the 95 percent devaluation of the dollar since the private Federal Reserve Corporation appropriated control of our money back in 1913. Since this latest premeditated economic "recession" has started, the Fed has been inflating the money supply at a historically staggering rate (inflation is the act of creating money; higher prices are the result of inflation). This causes prices to go up, and the value of money you earn and save goes down. Inflation is a quiet and evil tax, created underhandedly by government, which robs you of your wealth and security.

If foreign governments don't want to hold their wealth in dollars, why should you? Well, you shouldn't, either. Hard assets, such as precious metals and commodities, will hold their value, and increase in dollar terms, as the dollar collapses. Foreign currencies of creditor nations with budget surpluses will surge against the dollar. Locked-in low interest rate financial instruments will lose value as the interest earned on them will not keep up with the rate of inflation. To see what a real currency crisis looks like, Google "Weimar Republic" and see images of what happens when government prints money recklessly to artificially stimulate an economy.

The dollar and our country are in deliberate dire straits. Protect yourself while you still can.

Mervin Fried

Kingman