The worst financial crisis since the Great Depression - Larry Edelson

To end the Great Depression in 1933 Franklin Roosevelt, devalued the dollar via Executive Order #6102, confiscating gold and raising its price 69.3%, effectively kick starting asset reflation.

All they have to do is cease all gold sales and instead, raise the current official central bank price of gold from its booked value of $42.22 an ounce — to a price that monetizes a large enough portion of the world’s outstanding debts. That way, just like in 1933, the debts become a fraction of reinflated asset prices (led higher by the old price). And this time, instead of staying with the dollar as a reserve currency, three new monetary units of exchange are likely to be issued, each with equal reserve status.

1. A new fixed-rate currency regime. Immediately upon upping the price of gold and introducing the new currencies, a new fixed exchange rate system will be e-introduced. The floating exchange rate system will be tossed into the dust bin along with the old currencies. This will kill any speculation about further devaluations in the currency markets, and drastically reduce market volatility.

2. Compensatory measures to protect savers (who suffer most from a currency devaluation). For instance, a one-time windfall tax-free deposit will be issued by governments directly to citizens’ accounts, or, to employer-sponsored pensions, to IRAs, or Social Security accounts. Income taxes may subsequently be raised to pay for the giveaway, or a nominal global type of sales tax will be enacted to help pay for the new system and the compensatory measures.

3. Additional programs will be designed to protect lenders and creditors. Lenders stand a much higher chance of getting paid off under the new monetary system — but with currency whose purchasing power is now a fraction of what it was when the loans were originated....

The Big Question: What Gold Price Will Be Legislated To Reflate The U.S. And Global Economy? I can’t tell you what gold price the “powers-that-be” will ultimately agree to. But here’s what they will be looking at ...

■ To monetize 100% of the outstanding public and private sector debt in the U.S., the official government price of gold would have to be raised to more than
$53,000 per ounce.

■ To monetize 50%, the price of gold would have to be raised to around $26,500 an ounce.

■ To monetize 20% would require a gold price a hair over $10,600 an ounce.

■ To monetize just 10%, gold would have to be priced just over $5,300 an ounce.