— All Economy (and Related Topics)

Shuffle the letters in ‘Economics,’ and you get ‘Comic Nose.’ is a site all about economics. Our primary goal is educational. We want readers to have useful, practical knowledge of economics and what is going on in the world.

And there’s a lot going on. Most of it is bad, but a bit of it is good.

A Little Bit of Good News

Generally speaking, the good news about the economy has to do with opportunities available to those — and we hope you’re one of them — who recognize all the bad that’s happening.

As far as we’re concerned, one good opportunity that we talk about a lot is gold and silver. We buy it ourselves when we can, and we often encourage others to buy it, too.

That said, while there is some good news about opportunities that are available for forward-thinking people, we’re convinced that the overall picture is actually quite bleak.

Realistically, despite some good news about precious metals and some other opportunities, almost all recent economic news is bad — supposing it isn’t fabricated. Some of the news is really bad, and a fair bit is terrifyingly bad. In fact, much of it is so bad that most of us would gladly see gold and silver prices go down rather than experience what’s on the horizon.

But we are convinced the bad is inevitable, and so is the long-term superiority of gold and silver over almost all other investments available today.

So why are things so bad?

The Bad News About the Economy

At one time, the U.S. Dollar was on the gold standard. It was backed by gold, and convertible with gold. As a result, there was a limit to how many dollars could be printed. You could only print as many as you could back by gold — a limited resource.

On August 15, 1971, however, President Nixon revolutionized the international monetary system by putting an end to the gold standard. He did this in the name of “defending the dollar” against currency speculators whom he accused of destabilizing the currency. If you haven’t recently seen when President Nixon announced that the country was going off the gold standard, I recommend that you take a few minutes to watch the embedded video below.

That is important history recorded in that video.

The real reason Nixon moved away from the gold standard was that the Federal Reserve had effectively abandoned it already during the Vietnam war, printing far more money for the war effort than they could back with gold. When other countries started to realize this, the dollar was in danger. If countries started requesting gold for their dollars, the U.S.’s corrupt practices would have been uncovered.

So that was the end of the gold standard.

Now, for the dollar to remain valuable, a demand needed to be created for it. And instead of gold giving the dollar value, oil did — only in a different way.

This is when the petrodollar, as we more-or-less think of it today, was born. The U.S. made agreements with OPEC nations, guaranteeing them military protection as long as they sold their oil exclusively for the dollar. As a result, any nation that needed to purchase oil needed a stash of dollars. So, the value of the dollar remained very strong — so strong, in fact, that the Fed could print dollars at almost no cost in terms of natural resources, and other countries would send Americans their goods in exchange for the paper they needed to by oil.

This is how the U.S. became so wealthy. It is also how the U.S. became a nation that imported more than it exported. It was a pretty nice arrangement… while it lasted.

Decoupling from the Dollar

More recently, nations have become more and more convinced that this arrangement that favours the U.S. isn’t ultimately in their own interest. So they’ve been dropping the dollar as their reserve currency (‘decoupling’), and the U.S. has been waging wars to make them change their minds.

Since 2000, here are a few nations that have either decoupled trade from the dollar, or taken concrete steps in that direction:

  • Iraq
  • Iran
  • Syria
  • Libya
  • China
  • Venezuela
  • Russia

North Korea also has been willing to purchase oil with their own currency — an “illicit” purchase according to the U.S. government, and a reason to fire upon a North Korean vessel as recently as 2014.

Interestingly, all the countries on this list have been in the U.S. military’s cross-hairs. It isn’t coincidental.

The U.S. is on the verge of an economic collapse. The dollar is doomed. Global war is on the horizon. Civil unrest or war is inevitable.

The future doesn’t look pretty.


While there are many really terrible problems unfolding in the world right now, much if it owing to a failing economic system, one problem that will hit hard at some point is inflation.

The Fed has printed a ridiculous amount of dollars since 2008. Wars and manipulated data have temporarily propped it up, giving the illusion that we’re in the middle of a very unique economic recovery. (It is ‘unique’ because a huge a mount of data indicates that this ‘recovery’ shouldn’t really be a recovery at all.)

At some point, probably between 2015 and 2017, the dollar will be devalued and the U.S. will experience significant inflation. The government will likely identify and blame an enemy for the event or events that trigger the inflation. But it was built into the system as an inevitable consequence of going off the gold standard decades ago.

I advise people to prepare for what’s coming. I would be thrilled if people who have the means would move to a safer part of the world — South America, maybe. (That’s where I moved.) But if you can’t do that, then it is probably a good idea to move away from cities and be ready to provide for yourself and your family with food, water, shelter, and so on. Whatever you do, though, be sure that you protect your wealth against inflation.

Silver and Gold

Historically, investing in gold and silver has been the best hedge against inflation. When a currency loses value due to a surplus in supply, silver and gold — both limited resources in demand in part because they’re viewed as money that can’t be printed into existence — increase in value.

And due to the economic problems plaguing the world today, demand for gold is strong and increasing. Russia, China, and other countries are aggressively buying gold at what they consider discounted prices. The super-rich continue to invest heavily in it. And even a conservative prediction published by Bloomberg says that the price of gold will increase each quarter in 2015 due, in part, to demand in Asia.

But to invest wisely and responsibly in gold and silver, you need to know something about it. Whether you are a new investor or an old pro, I recommend that you study up.