Tag Archives: gold

The Free Market vs. The Great Depression

“If Ben Bernanke were my student I would’ve flunked him”
-Peter Schiff

What caused the Great Depression?

There is a clear-cut right and a wrong here.

“Common wisdom” and history textbooks tell us that the Depression was caused by the free market.

But the correct answer is that government intervention caused the Great Depression.

By not allowing the free market to work, Hoover and Roosevelt set the stage for a horrible period in U.S. history. The same thing is happening right now. The government and Federal Reserve all think that that if they “do nothing” things will get worse. And they are right, things will get worse no matter what. But by artificially manipulating interest rates and printing trillions of dollars out of thin air, they are compounding the problem.

These facts should not even be up for debate. There is a clear objective truth here, and the government and bankster crooks are on the side of falsehood, with the mainstream media as cheerleaders for all that is wrong.

Can we stop living in the fantasy world that the government will take care of everything, that the government doesn’t lie, that the U.S. government is virtuous?

To save the economy we will need more than to simply adopt a gold standard. If we just switch to gold and let congress control the game, we are screwed. We must let the free market decide what currency we will use, not some central planning bureaucrats.

There is a chance that the central planners will try to roll out the Amero this year or next. However, why would anyone buy into this sham? Simply changing the name of the currency and what countries it represents does not make fake money real! A first grader could figure this out.

For now, I’m sticking with goldmoney.com and working on Plan B if things go downhill in a hurry here in the so-called land of the free!

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Money Rules the World

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I was reading my Richard Russell newsletter this morning (www.dowtheoryletters.com), and he quoted a synopsis of an article that I found interesting:

Human Freedom Rests on Gold Redeemable Money
by Hon. Howard Buffett
U.S. Congressman from Nebraska

Reprinted from The Commercial and Financial Chronicle 5/6/48

    “Congressman Buffett stresses relation between money and freedom and contends without a redeemable currency, individual’s freedom to sustain himself or move his property is dependent on goodwill of politicians. Says paper money systems generally collapse and result in economic chaos. Points out gold standard would restrict government spending and give people greater power over public purse. Holds present is propitious time to restore gold standard.”

“Is there a connection between Human Freedom and A Gold Redeemable Money? At first glance it would seem that money belongs to the world of economics and human freedom to the political sphere.

“But when you recall that one of the first moves by Lenin, Mussolini and Hitler was to outlaw individual ownership of gold, you begin to sense that there may be some connection between money, redeemable in gold, and the rare prize known as human liberty. You see, gold is mobility, gold is a passport to move across borders.

“Also, when you find that Lenin declared and demonstrated that a sure way to overturn the existing social order and bring about communism was by printing press paper money, then again you are impressed with the possibility of a relationship between a gold-backed money and human freedom.

“In that case then certainly you and I as Americans should know the connection. We must find it even if money is a difficult and tricky subject. I suppose that if most people were asked for their views on money the almost universal answer would be that they didn’t have enough of it.

“In a free country the monetary unit rests upon a fixed foundation of gold or gold and silver independent of the ruling politicians. Our dollar was that kind of money before 1933. Under that system paper currency is redeemable for a certain weight of gold, at the free option and choice of the holder of paper money.”

Ron Paul was not the first to speak the truth about money and enslavement in congress. This goes to show that even in the early days of the U.S. government taking the dollar off the gold standard, there were a few sober voices of reason who knew that  giving control of the money supply to any one group of people would be a recipe for an unfree society.

At some point in the next few years, the dollar is going to collapse and end up being worth nothing at all. The cameras at that point will turn to the politicians for a “solution”. Is it likely that the politicians will opt for a reasonable and logical solution, like a gold-backed currency? This would mean giving the people more freedom and taking away a lot of their power.

More likely, they will try to push a new currency, like the commonly discussed Amero on is. But the new currency will be the same as the old currency. This Amero introduction may keep the sheeple asleep temporarily, but as it will be fake money just like the dollar, it will have no effect on the sustainability of our system or the inevitability of the value of gold skyrocketing.

Eventually- and this could be a long way off in the future, or merely a few years- reality will win out, and we will be forced to exchange real money for our goods and services. This will result in the U.S. government not being able to wage war when it feels like it- basically the fall of the empire.

Once there is no longer the capability to print money out of thin air, sanity will return. We will not be arguing about war or government welfare programs because there will literally be no money for them, not even the phony money that is currently used to prop them up right now.

Why is it that the government does pretty much whatever it wants?

Why is it that over 90% of the American public was against the bailouts, but congress ignored this and passed the money on anyway?

It all simply comes down to one thing: unlimited ability to print money by the authoritarian sociopaths that call themselves our leaders. This is the enslavement that we live under.

We are living through extraordinary times. We will someday look back at these times, amazed at the foolishness people believed in, the propaganda that was swallowed by the masses, and how an entire generation lost the ability to reason and process logical concepts like the fact that only a system based on real money such as gold and silver will give the greatest amount of opportunities to the greatest number of people.

The best way to get around the system as it stands right now is to start trading in your fake money for gold and silver. Since physical metals are in short supply, a great alternative is to set up an account at goldmoney.com.

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The Reason Why The Dollar Rally is Phony, and Why The Government Is Out Of Control

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?

No.

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.

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5 Major Signs Not to Give Up on the Gold Bull Market

Some pundits have called for the end to the gold bull market, or at the very least a long pullback period. There are three important points why I do not believe either case to be accurate, and I think continuing to buy or hold at this point is still the smartest thing to do.

1. Indians have been lured by the lower gold prices. Bullion imports in Abu Dhabi — a key middle East gold hub — surged 300% in August compared with the same month last year.

2. Gold has not dipped below it’s 21-month moving average since early on in the bull market in 2002. The 21-month MA is currently 790, and gold has been holding solid above 800.

3. The U.S. mint’s inventory of American eagles is down to zero. The mint is out of gold eagles, and many dealers have no supply of gold coins.

4. Late summer has been the worst time for gold over the course of this bull market, and Fall has been the time we’ve seen the biggest surges. We’re only two weeks away from the start of Fall, it would be foolish to sell now!

5. Gold has been held back due to the dollar rising. The dollar has risen due to a worldwide economic slowdown. This has nothing to do with the U.S. economy being strong. The fundamentals are still working against the dollar, and will eventually win out.

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What happened to “falling oil demand”?

You’ve just gotta love the mainstream media and their so-called experts! When oil went up to $145 a barrel, it was of course due to rising demand from increasing middle class populations in Asia.

Then, when oil became way overbought, it took a dive- all the way down to a low of $111. All during this price decline, these “experts” on the markets told us that “oil is dropping on lower demand world wide”. HAHAHAHAHAHA! That’s absolutely hillarious. There is either higher demand or there is not. People around the world do not just suddenly decide to stop buying gas. Sure, as prices rise, people will cut back. But this does not mean the demand ceases to exist!

The facts are that 1) the supply of oil in the world is limited (even perceived peak oil will have the same effect as true peak oil), and 2) demand for oil around the world remains unchanged in August 2008 (year over year).

If the demand is still there and there have not been any significant oil well discoveries in the past year, we have to search for a different answer other than the stupid media’s “prices drop due to falling demand” nonsense.

The truth is really not that complex. The trend for oil is UP. Oil is in a bull market. Does that mean it will skyrocket straight up with no pull backs? No, of course not. Just like gold, and stocks, oil will girate between being overbought and oversold. It will trade in a range. But $111/barrell oil is still higher than January’s prices and FAR higher than a year ago.

So oil, just like gold, is in an upward trend. Stay away from your T.V.’s and newspapers and annointed “experts”!

The markets never lie. Oil is in demand and the supply is dwindling.  Keep it real.

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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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Gold Oversold

The charts clearly show that gold is oversold.

Today’s rally could signify the end of the correction. With September and gold-buying season approaching, I suspect the gold price will be off to the races very soon.

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