Questions, Answers & Common Sense

06 May

[courtesy Google Images]

[courtesy Google Images]

Ivan (one of our readers) wrote:


 “There is a House Bill #2847 stating that dollar and other currencies are to be reset worldwide on July 1, 2014. Does this mean that petro dollar disappears and dollar itself will be devalued?”



You don’t need to be a rocket scientist to understand everything in this world.   Sometimes, common sense is enough.

A currency “reset” is a moment when the relative values of most currencies are changed.  For example, you might be able to buy 100 yen today with $1.  But on the morning after the “reset,” $1 might only purchase 50 yen.  By means of a “reset,” the dollar might’ve lost 50% of its purchasing power overnight.

In the event of a global currency “reset” the relative values of all of the world’s major currencies would be significantly changed.  Everyone seems to agree that the primary effect of a “reset,” would be to significantly reduce the purchasing power of the US dollar.

I haven’t read HR 2847 and it’s bad business to comment on any text that you haven’t read.  Still, I don’t believe that that bill actually announces that there’ll be a currency “reset” on July 1st, A.D. 2014.

If there’s going to be a currency “reset”, it will happen suddenly and without warning.  If they announced the “reset” several weeks or even days or even hours in advance, everyone would instantly dump dollars and buy whatever currency or tangible forms of wealth that would be sure to hold or increase its value after the “reset”.

Announcing the “reset” in advance would undermine whatever effect the government hoped to achieve.  Therefore, it’s virtually impossible that any legislative act would give advanced notice of the specific day when a currency reset is scheduled to take place.

Whoever is reading HR 2847 to announce a currency reset for July 1st is misreading the bill’s language.  That misreading might be accidental or it might be intended to spur sales of some product or service.  But if they’re misreading the significance of July 1st, they’re likely also misreading the HR 2847’s significance as to the “petro-dollar disappearing” etc.

I won’t be surprised if/when the fiat-/petro-dollar disappears.  That disappearance is probably inevitable. But it’s not going to happen on July 1st and it’s not going be caused by HR 2847.


Posted by on May 6, 2014 in Fiat Currency, Values


Tags: , ,

10 responses to “Questions, Answers & Common Sense

  1. EarlatOregon

    May 6, 2014 at 6:02 PM

    The new Peso Dollar?

  2. E Brown

    May 6, 2014 at 8:08 PM HR 2847 goes into effect July 1st of this year. FACTAv included in this bill is the driving force behind global monetary collapse. If its true, which I think will happen, we have 3 months to prepare, if not it is still good to have essentials, food, water, flashlight lights etc cause its gonna happen. Be prepared Peace

  3. E Brown

    May 6, 2014 at 8:17 PM

    There may not be a “currency reset” however article V of the bill titled FACTA gives the IRS oversight control of all global transactions if you are dealing in US dollars. Other countries have the option of complying and charging 30% +- for these transactions or trade in their own currency or Gold. I have read several post here talking about countries like China, Germany and Russia stocking up on their gold reserves even to the point of asking for them back case in point Germany. July 1st something is gonna change but not for the better.

    • Adask

      May 12, 2014 at 9:47 PM

      Does FATCA give the IRS control over “all global transactions”? Or does it only give control over “all global transactions that are denominated in US dollars“? I’ll bet the answer is only over all global transactions denominated in US dollars. If I’m right FATCA will probably cause even more foreign countries to stop transacting in fiat dollars and seek to do business in one or more alternative currencies. If so, that will only accelerate the fiat dollar’s loss of purchasing power and eventual demise.

  4. Toland

    May 6, 2014 at 8:41 PM

    From an article at

    This item about the passage of H.R. 2847 causing the U.S. dollar to collapse as of 1 July 2014 is another example financial scarelore put out in conjunction with an investment come-on, in this case an ominous sales pitch put out by the folks at Stansberry & Associates Investment Research LLC.

    This latest panic piece is offered in a Stansberry & Associates presentation featuring a number of scary-sounding statements about how we in the U.S. are soon to experience a “near-complete shutdown of the American economy,” will see “the savings of millions wiped out,” will be living under the imposition of martial law by the federal government, and will be struggling in the aftermath of a number of other apocalyptic financial scenarios.

    And according to Stansberry & Associates, this remarkable, radical collapse of the United States monetary system and “our normal way of life” is going into effect in a mere matter of months (just like a similar recent conspiracy scare about the federal government’s plan to eliminate 16 states from the U.S. in the very near future).

    But wait … all one needs in order to avoid suffering from this devastating national calamity, one that will collapse our entire monetary system and spell doom for the American way of life, is a little information. Information that can be yours if you’ll just shell out $149 for a one-year subscription to Stansberry’s Investment Advisory newsletter.


  5. Peter

    May 7, 2014 at 5:55 AM

    The end of the petro-dollar is underway and will have devastating effects in the territorial States, United States,and American Samoa.
    Look to see what replaces the petro-dollar, maybe the petro-ruble or petro -yuan. The countries that ditch the dollar are looking survive.They know the dollar collapse will destroy their economies and thus are acting now, as evidenced by the new down leg in the dollar index.
    I made the observation over the last year of something significant. when the Japanese Yen rises, gold rises and common stocks fall and vice versa. At the current time it appears the Yen has bottomed and is beginning a new uptrend. This is an early indicator that common stocks are rolling over and silver and gold are starting back up.
    Rising Japanese bond yields wont be good for the derivative machinery in place. the Japanese Yen indicator seems to have been reliable in the past three years.
    Currency upheavals and competing currency wars are well along, find a safe place away from the front lines and avoid being collateral damage in the Great War being carried out in the land of FICTIONAL ENTITY, in which few understand the language.

    • EarlatOregon

      May 9, 2014 at 7:24 PM

      The End of the Petro Dollar?

      Not So!

      the US Dollar is backed by Massive Export of Oil.

      NEW YORK (AP) –

      For the first time, the top export of the United States is fuel.

      By David J. Phillip, AP

      Measured in dollars,
      the nation is on pace this year to ship more gasoline, diesel, and jet fuel
      than any other single export,
      according to U.S. Census data going back to 1990.

      It will also be the first year in more than 60
      that America has been a net exporter of these fuels.

      Just how big of a shift is this?
      A decade ago, fuel wasn’t even among the top 25 exports.

      Where is all of the Oil coming From?

      535,951 Estimated Producing Oil wells


      one reason
      Why gasoline is So expensive:

      In 2009, nearly
      48 percent of all New proposed oil and gas parcels
      were being Protested.

      Oil and Gas Lease Utilization,
      Onshore and Offshore

      Updated Report to the President

      U.S. Department of the Interior
      May 2012 pg 15

      • henry

        May 15, 2014 at 3:35 PM

        It is true that few people are talking about that the US is becoming a net exporter of energy. The problem is that even if it increases its sales it will have no effect on Russia, China, Iran, and many other countries that will no longer use the dollar for their transactions. Many of their dollars sitting in banks or treasury bills that they hold will come back to America. This will mean a much greater number of dollars will be circulating in America. This will be the end of the petro dollar. The last one to sell their dollars will be the loser.

  6. Darrell

    May 12, 2014 at 9:38 PM

    invest in the product not in the transportion of it, therefore those who wish to transport their goods will be able to afford to transport it and transportion facilities will compete to transport it. If the cost of transporting the goods is more than the value of the product than produce a product that your own country and people can use. By not transporting that product you build surplus, by not shipping that product you cause shipping cost decline, by causing shipping cost to decline you cause fuel to go down. This is called a “Enconomic Product boycott” world wide. So tell the oil industry to eat their product while you eat yours.

  7. aloe

    May 17, 2014 at 6:21 PM

    What’s up every one, here every one is sharing such knowledge,
    thus it’s nice to read this blog, and I used to pay a quick visit
    this website every day.


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