The dollar has been rallying the past few months and pushing down the price of precious metals across the board.
Should we think that this dollar rally will continue much longer? Is there any reason to think this rally is sustainable?
The dollar rally is being caused by hedge funds selling everthing and running to “safety”. The dollar is by no means safe, but right now, that’s there’s no choice for these funds but to run to dollars. At some point, all the selling will end, and there will be a rush into real money, and that real money is GOLD.
If you want to know how this will all go down, just turn on the TV and tune in to any major network. Watch the financial show if you can stomach it. They will debate all this nonsense like bailouts and paying for all these government programs. $3 trillion here, 5 trilion there, another 800 billion over there…it’s all so nonchalant on these shows.
But very few in the mainstream (Peter Schiff being a rare exeption) are addressing the elephant in the room. The government HAS NO MONEY! The government must steal money from people to dish out to all these groups (like the banks and the auto companies). Putting aside the morality of this for a minute, how much sense does it even make as a fiscal policy to begin with?
Honestly, if the banks and the autos are getting bailed out with stolen funds, what about everyone else?
I run an internet business selling guides and DVDs on swim training. What if my business starts to slide? Shouldn’t I get some bailout money too, under these principles?
If bailouts are the answer in one arena, they have to be the answer in all arenas.
“What about all the lost jobs?? You certainly don’t want millions unemployed if the car companies go belly up!” cry the pundits.
Again, if this is about unemployment, the government should just bail out any struggling company that has employees!
For example, I employ a designer, a developer, an administrative assistant, and a fulfillment person. If I go under, that’s 4 jobs lost. Why are these people’s jobs less imporant than auto workers? Are auto workers somehow irreplacable?
The government’s actions are going to make this recession far worse- the Great Depression will be a cake walk when compared to what’s coming in the next few years.
I recommend getting gold, and getting it now. Goldmoney is the best place I know where you can buy gold, and you don’t need a ton of money to get an account.