Gold Is Money
The Western financial world is officially in full panic mode. A nearly $1 trillion bailout of Greece confirms that fact. Our very own Federal Reserve is providing billions to the effort, but this is much more than a bailout for Greece. It is a bailout for banks holding Greek debt and the debt of other European nations teetering on default.
This bailout is not a fix or a cure for too much debt. People on both sides of the pond are simply spending more than they earn. The “fix” is a long painful road of consuming less and saving more, but that is not what this bailout represents. What the leaders of the Western World chose was the short painless path of money printing. You have to ask yourself where did they come up with nearly a trillion dollars in such a short amount of time?
If real assets were used for this bailout, it would not be done. Think about this for a minute. Let’s say for the American part of this rescue we had to put up half of New York State for collateral. Does the thought of that much prime land frittered away make you squeamish? How about putting up 500 million barrels of oil out of the Strategic Petroleum Reserve? Too valuable you say? Then maybe a couple thousand tons of gold out of Fort Knox would be okay to use, after all, it’s just sitting there (I hope). Doesn’t this sound absurd? It sure does because these are real assets and printed money is not. This is why the U.S. Fed is using dollars created out of thin air to help bail out its banking buddies in Europe. It is the easy way out, at least at the beginning.
In the end, this kind of reckless desperation will cause every dollar you spend and save to be worth less. If the Fed prints too many dollars, then they’ll be just plain worthless. What do you suppose will happen when California, Illinois, Florida or any one of more than a couple of dozen U.S. states all gets into the same trouble as Greece? Do you think the Fed will let them fail or print more money and bail them out too? I’m going with a giant money printing bonanza right here in America. I covered some of this in a February post called “America Has Its Own PIGS.”
Gold buyers see what’s coming, and prices are being bid up. Gold set a new all time high this week. Why? Money, or the buying power of money, is systematically being destroyed by current and coming bailouts. The new money is gold and Congressman Ron Paul agrees. He said earlier this week, “Gold, all of a sudden, started acting differently. It started acting as a currency rather than just reacting to the value of the dollar or other commodities . . . Gold has been money for 6 thousand years and it’s going to remain that way, and it will rule the roost . . . It’s telling us that the dollar is actually very weak . . . when you measure it against gold.” Silver is also rising in price. When gold rockets high enough in price, then silver will also be considered money.
This so called bailout will just extend the game. The question is for how long? To be frank, I do not know how this will finally shake out. The two things you can count on for sure: there will be some very big inflation–and gold is money.
Spot on Greg. No end in sight.
That might be too low Greg! I guess it depends on how many more trillions we print to bail out everyone on the planet.
Might I also recommend a recent article by Stewart Dougherty titled “The Dollar Rally is Hugely Bullish for Precious Metals.”
It’s one of the most compelling recent articles I have read about gold, where it is going and how it is going to get there.
that’s what it should be worth right now with the current inflation rate. It true value has been suppressed, and soon(less than 2years) it will hit 10 000 at least. Love the cartoon by the way.
During the Revolutionary War, the British engaged in counterfeiting the Continental currency, contributing to the acceleration of its depreciation and ultimately its demise. Something to think about.
Glad I found this place last week. Nice to know I’m not crazy.
Mike we are crazy with brother. Please wake me up when this is over
It is still not to late to get into the Gold and silver markets.
The more fiat currency is printed, the lower paper currency goes, and thus, the comparitive value of gold rises.
Gold is money, Paper is not money, Paper is the receit of money.
People have lost this concept, and have been brainwashed into thinking the PAPER is the money, whilest this is not true.
More and more Paper money is going to be printed, this is not in dispute, no one can remember the last time the Fed came out and said they were DESTROYING money.
What we can control is people understanding that Paper is not money.
Hopefully, Goldman Sachs and the other masters of manipulation won’t be able to artificially depress precious metal values any longer. If so, gold will rise to where all financial indicators say it should already be. Whether that number is $5,000 or $50,000 must inevitably be determined by financial realities of today, and not by more short-selling shenanigans and speculative futures.
It would seem that our Fed Reserve should change its’ name to International Reserve, eh? Another fine reason to audit the fed. It would be nice to audit Ft Knox too as I’ve read many times that its’ empty. Last year we sent over 400 billion in gold bars to China (the counterfeit gold ruse) to ease our mortgage debts since China owns over a trillion dollars in mortgage assets here in the US. If the treasury has converted to open criminal activity and counterfeiting ops, then we are in much deeper trouble than we are led to believe.
It won’t be long before this giant house of cards caves in, and there’s gonna be lots of collateral damage. If even half of our commerce and commercial functions are controlled by debt to international bankers, a global economic implosion is certainly on the table. More than likely around the time the food/tax riots fire up.
Our dollar is only worth about 3 cents now as it is, and the bond market will dissolve when other governments discover we have no assets to back them with. Most of our gold vanished shortly after the Gold Confiscation Act in the 1930’s in repairation of war debts owed to England. It gives me a headache just thinking about it 😛
Yessir, it’s pretty sad. As it appears, there is no end in sight, and the momentum they have gathered is going to be a tough one to stop or reverse. I’ve noticed that gold is the only thing that was up in the worldwide market. Wall St lost over 700 points in 2 weeks, China, Germany, Asia, Japan, and UK stocks ALL dropped today. A pattern emerges… the international bankers took a hit this time and dumped their potential losses into the metals market.
Keep up the good work Greg!
Hey Greg I didn’t realize you ran your own site. I read Jim Sinclair’s site every day and he always says very nice things about you. Keep up the good work, it does have an effect!
JS’s missives over the past couple of days says it all (about gold) The expert that he is, he still isn’t saying where it will ‘top out’ -but Martin Armstrong is! Your above mentioned $5,000 figure just may occur. Unfortunately, if it does go that high, the rest of this globe will be literally falling apart! Sure glad I bought mine in 2001…
Too bad we were not taught real economics in school. Without a true understanding of inflation including government and money a person has little chance of financial survival. Easy street has become greasy street. I spend endless time reading books that I wish I had read 10-20 years back which means I would have purchased gold and silver back then.
Recomended reading: Harry Browne- (If you can locate it) How you can profit from the coming devalution. Richard Maybury- Whatever happened to penny candy?
Interesting quote regarding Ben Franklin and the primary cause of the Revolution. He is referencing the corruption of the British Parliament and the influence of the banking institutions.
“Franklin added that this was the original cause of the American Revolution – and not the tax on tea nor the Stamp Act, as it has been taught again and again in history books. The financiers always manage to have removed from school books all that can throw light on their own schemes, and damage the glow that protects their power.”
“The Colonies would gladly have borne the little tax on tea and other matters had it not been the poverty caused by the bad influence of the English bankers on the Parliament, which has caused in the Colonies hatred of England and the Revolutionary War.”
It seems we are right back where we started but too many people are too complacent to realize that they are slaves to their debt and the bankers are their slave masters.
I do not understand. Do the American people understand? Why arent people protesting this treasonist behaviour? Do we not care? What happened to the American peoples spines?
Mothers in 1975 had more balls than we as a collective do today. What happened to those Mothers? Where are the brave men?
Why do I only hear DOG and a few select Patriots?
Everyone turn off you tv, radio and internet for 3 days and think about the country we have become and the people who live in it. Than turn everything back on and correct the wrongs.
1. The state or fact of being responsible
2. an instance of being responsible
**3. a particular BURDEN of OBLIGATION upon one who is responsible
4. a person or thing for which one is responsible
5. reliabilty or dependability
Synonyms: answerability, accountability
the US Government is now dismissed and tomorrows lecture will be on
T R E A S O N
Right on, Greg. I’ve got about 15% of my total net-worth in gold (bullion and ETF) and considering upping that % . I am concerned, however, that the ‘powers that be’ may, before too long (meaning…if gold gets a bit higher in price from here), try to pull a fast one on us ‘gold-bugs’/future gold-bugs i.e. some kind of steroidal tax on gold purchases/sales, or something similar. Basically i’m trying to ‘think outside the box’ here, Greg, and figure out how to protect myself, just in case. I believe, given the current and evolving conditions, that ‘anything is possible’ out of D.C. I would greatly appreciate any thoughts/suggestions/feedback from you ! Keep up the great work, i’m so glad to have recently discovered your website !
Greg, recently a friend turned me on to your site, and I love it…keep up the great work bro ! Currently the only precious metals I own are gold coins (approx. 10% of my total combined investment/retirement assets). Do you think it would be smart to swap some of the gold for other metals (silver ?)for diversification purposes, or should I stay all gold ? Thanks again for a great site ! Mitch Cumsteen , Chicago
Hi, I truly enjoyed reading your article. I found your site from Google. Will bookmark to return later. Thanks!
Thanks for the info and reminding me why i do not watch reality tv.
Your headline says it all. You could have stopped right there.