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ARMENIAN CURRENCY GOES POOF
Trace Mayer, J.D.
Gold Seek
http://news.goldseek.com/GoldSeek/1236262544. php
March 5 2009
On 3 March 2009 in the space of a few hours the Armenian dram
evaporated from about 300 per dollar to about 400 per dollar and
275,000 drams per ounce of gold to approximately 365,000 drams
per ounce of gold. This rapid 30% currency poofing is like when the
Kazakhstan currency went poof but without the strategic geo-political
considerations. Nevertheless, extremely ominous financial troubles stir
in Eastern Europe. One knows the conditions are dire when Armenian
Prime Minister Tigran Sargsyan advocates using the Russian ruble as
a stable currency.
As fiat currencies represent the common stock of nations; Armenia's
future is omnious. Trend Capital has reported that Ogtay Hagverdiev,
of the Azerbaijani Cabinet of Ministers Economy and Finance and
Credit Policy Department head, said. "It will take time to restore
the country's economy. A revolt among the people may begin in the
meanwhile."
The Armenian government may soon default. Rising prices, the effects
of inflation, will soon begin. Shortages, a common effect of currency
problems, may appear. Civil unrest may follow like in Iceland, Greece
and China.
JUNCTION POINTS
Large buildings in urban environments are often constructed in such
a way to reduce the effects, such as sound, of the outside. It can
be inspiring to sit in perfect silence without any sound to be heard
coming from the bustling outside streets. How is this silence possible
with the hustle and bustle of a metropolis only a few yards away?
The answer lies in the construction. For example, an inner building
can be built within the walls of an existing building with the walls
of the inner building connected to the outside building at only a few
junction points. This will greatly limit the effects of the hustling
and bustling metropolis.
The investor can learn a lesson. The reduction of junction points
with businesses, organizations and governments can greatly reduce
various risks to one's capital and their effect on one's personal
life. If the relationship is no longer mutually advantageous then
any attachment through junction points should be easily severed.
Defining one's throughput and then implementing the Theory of
Constraints thinking process can be extremely helpful in developing
the Four Hour Workweek. This may allow one the freedom to live where,
when and how they want. The transitions accompanying the great credit
contraction will provide tremendous opportunity for wealth generation
and accumulation. Being able to understand the environment will allow
one to swim with, not against, the current.
As the great credit contraction grinds on more fiat currency illusions,
like the Armenian dram, Kazakhstan tenge or British Pound, will
evaporate either wholly or partially. As poet John Greenleaf wrote,
"For all sad words of tongue and pen, The saddest are these, 'It
might have been'."
I am sure many Armenians, Kazaks and British, who had their life
savings evaporate, wish they had a last plane account with an
institution like GoldMoney where they could have kept their cash
balances in a tangible asset because no matter what happens with its
fiat currency price the gold or silver is still there. When these
currency devaluation events happen, and a golden sword of Damocles
hangs over the US Dollar, it is extremely fast.
Trace Mayer, J.D.
Gold Seek
http://news.goldseek.com/GoldSeek/1236262544. php
March 5 2009
On 3 March 2009 in the space of a few hours the Armenian dram
evaporated from about 300 per dollar to about 400 per dollar and
275,000 drams per ounce of gold to approximately 365,000 drams
per ounce of gold. This rapid 30% currency poofing is like when the
Kazakhstan currency went poof but without the strategic geo-political
considerations. Nevertheless, extremely ominous financial troubles stir
in Eastern Europe. One knows the conditions are dire when Armenian
Prime Minister Tigran Sargsyan advocates using the Russian ruble as
a stable currency.
As fiat currencies represent the common stock of nations; Armenia's
future is omnious. Trend Capital has reported that Ogtay Hagverdiev,
of the Azerbaijani Cabinet of Ministers Economy and Finance and
Credit Policy Department head, said. "It will take time to restore
the country's economy. A revolt among the people may begin in the
meanwhile."
The Armenian government may soon default. Rising prices, the effects
of inflation, will soon begin. Shortages, a common effect of currency
problems, may appear. Civil unrest may follow like in Iceland, Greece
and China.
JUNCTION POINTS
Large buildings in urban environments are often constructed in such
a way to reduce the effects, such as sound, of the outside. It can
be inspiring to sit in perfect silence without any sound to be heard
coming from the bustling outside streets. How is this silence possible
with the hustle and bustle of a metropolis only a few yards away?
The answer lies in the construction. For example, an inner building
can be built within the walls of an existing building with the walls
of the inner building connected to the outside building at only a few
junction points. This will greatly limit the effects of the hustling
and bustling metropolis.
The investor can learn a lesson. The reduction of junction points
with businesses, organizations and governments can greatly reduce
various risks to one's capital and their effect on one's personal
life. If the relationship is no longer mutually advantageous then
any attachment through junction points should be easily severed.
Defining one's throughput and then implementing the Theory of
Constraints thinking process can be extremely helpful in developing
the Four Hour Workweek. This may allow one the freedom to live where,
when and how they want. The transitions accompanying the great credit
contraction will provide tremendous opportunity for wealth generation
and accumulation. Being able to understand the environment will allow
one to swim with, not against, the current.
As the great credit contraction grinds on more fiat currency illusions,
like the Armenian dram, Kazakhstan tenge or British Pound, will
evaporate either wholly or partially. As poet John Greenleaf wrote,
"For all sad words of tongue and pen, The saddest are these, 'It
might have been'."
I am sure many Armenians, Kazaks and British, who had their life
savings evaporate, wish they had a last plane account with an
institution like GoldMoney where they could have kept their cash
balances in a tangible asset because no matter what happens with its
fiat currency price the gold or silver is still there. When these
currency devaluation events happen, and a golden sword of Damocles
hangs over the US Dollar, it is extremely fast.