Tag Archives: recession

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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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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“Core” Inflation

“Core” inflation is a term the government made up to cook the books and give us phony numbers and make us feel all warm and fuzzy about the state of the U.S. economy. Real inflation rates are thus concealed.

Core inflation is measured by taking out the index items that are susceptible to abrupt price movements. This will include food and energy (yeah, like those aren’t important!) and other items from time to time. The high oil prices, for example, even though they affect every other price to which gas is a factor (most things), are not reflected in core numbers.

Anytime you hear the word “core” in the mainstream media when a discussion about inflation arises, turn on your B.S. detector and move on!

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