Quote Originally Posted by Uncle Salty View Post
How exactly do they devalue the currency by 40%? Against what? Other currencies? The dollar floats. It's not like they can revalue the dollar against the price of gold, as gold floats against the dollar as well.

Maybe against oil as OPEC could all of a sudden demand another 40% in US dollars for a barrel of oil. But other than that, how exactly does one devalue the dollar?
Against Gold, as the only sound alternative currency left.

Nice extrapolation to immediately put it into Oil Terms. The thought of $3 gas being dang near $6 gas overnight is a systemic shocker, and with only 1/2 of the buying power one had only a few hours before the unannounced deval.

That was the other point PLW made...that this re-val would not be announced in advance, anymore than the prior one was, when gold was $20.67 on Friday and then $35 on the following re-open for banking business event. PLW was consistent in that "sudden" deval point he was making. I believe he was referring to the fact that the elite wouldn't give him a specific date, not even a general sense as to when it was going to occur....just THAT it was going to occur, and that it was "next" as pre-announced by Bernake 10 years ago in DC speech. (Link above.)


beefsteak