From FA, sent to Recaps 11-26-15
My theory on why gold, silver and oil will go up in value after the RV
I am a long time student and researcher of the global financial system. We certainly all live in interesting times indeed. Our best estimate at total money supply of Dollars is 20 Trillion. Years ago the FED used to publish M1, M2, M3 and L. Now it takes more noodling.
I believe commodities will go up after the Dinar RV. Some say a basket of currencies will revalue. We'll see, but for now let's just theorize on the impact of Dinar RV.
The estimates we have received over the years is there are about 6 Million Dinar holders in U.S. Let us be conservative and imagine each holder has an average of just 8 - 25,000 Iraqi Dinar Notes.
Obviously many people have a great deal more...but, lets be very conservative.
That is 200, 000 Dinars at, say $3.50 = $700,000. Now we multiply $700,000 by 6 million. And that equals 4.2 Trillion U.S. Dollars.
These dollars must be created, (monetized), after all they are Notes, debt instruments, so it's legal.
The FED in tandem with the banks will create the dollars and exchange them for Dinar. What happens to the Dinar after that is another story and above my pay grade. But, there's oil credits etc.
Half of the 4.2 Trillion will go back to the UST in taxes. Of course they will spend it and IMO will not pay down debt. When's the last time they did that?
This is going to be a nice hit on money supply. About a 20% increase of dollars virtually overnight. Of course it is going to take some time for these dollars to get out there.
This is called velocity.
But, remember even the UST trading Dinar's for oil, and then the oil is sold. It all adds to velocity and rising gold and silver, and oil prices because this will all weaken the dollar.
More dollars chasing the same amount of goods. Gold and Silver should certainly move higher.
Couple this with the possibility of bail ins and negative interest rates on savings. This may be an even additional reason to consider hard assets with your profits.