Reality always wins out in the economy

Lately, gold and silver have been getting beaten to a pulp in the markets. The phony dollar rally has been the main cause of this metals slump, but the smart money is holding and buying MORE gold and silver. Today, we have a report that inflation was up in July and prices rose at their fastest rate (year over year) in the past 27 years! On this news, gold so far today has been up about $15 and silver close to $.50/oz.

The fundamentals are still there. We have a national debt that will not be paid off in 3 lifetimes! The government and the Fed will INFLATE OR DIE. There is no other option. The economy will go through major changes in the next couple of years.  These changes will catch most people off guard, but not those of us who have exchanged our fiat dollars for real money.

As a friend of mine put it, “we are flying along here at 80 miles per hour, about to hit a wall, and the politicians, the mainstream media, and even most economists and so-called “experts” do not want to confront this reality.” We will hit this wall without touching the brakes. It may not be this year, it may not be next, but all the human will in the world, including and especially government intervention, can’t change this reality.

Reality may bite, but the avoidance of reality will be the true undoing of our economy and of most individuals’ wealth.

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