Bernanke's Folly, an expose of rational ignorance

Throughout the history of civilization an epic battle has always been waged. This battle is between currency and money, and is considered the battle of the ages. In blind faith, every government and general population believe currency will win, but gold and silver always defeats as it inevitably revalues. Periodically, the free market automatically rebalances the value of gold/silver against fiat currencies. This pattern has repeated itself time and again since the first great currency crash in Athens in 407 B.C. They were considered one of the greatest civilizations of all time, but were eventually smashed by gold as deficit spending and currency creation got out of control. The next great empire was Rome. Over 750 years, the leaders of Rome inflated their currency supply by debasing the coinage to pay for war, public works projects and various social programs. Yes, they invented welfare. Once again the laws of economics took hold and Rome was burning. The pattern is always the same:
1. The government starts with good money.
2. It rapidly develops economically and socially.
3. Expenditures of layers of public works projects, programs, and military strength are created.
4. Unplanned wars cause them to debase currency to fund the effort.
5. They move away from gold and completely rely on printed fiat.
6. Massive inflation sets in as the currency supply increases.
7. Faith in the currency is lost.
8. The movement out of the inflated currency takes place and the population moves to tangible assets.
9. The currency collapses and a massive transfer of wealth takes place.
10. Those holding precious metals become rich beyond belief.

Gold is and will always be the great equalizer. Can this happen in America? Yes, it’s already taking shape in rapid velocity.

Since the FED opened for business in 1914, the U.S. currency has been borrowed into existence from a private bank (the FED). The FED creates currency out of thin air and charges interest for it. As a result, heavy taxes are created so the government can afford to pay for more currency creation and its interest. If taxes do not cover the interest, every new dollar created greatly devalues all the other dollars in existence. This gives birth to inflation. *Note: If we pay back all the currency that was borrowed into existence, we still owe the interest. How do we pay the interest if all the currency is paid back? We borrow more into existence. Every pyramid scheme flourishes in its early days and our economic system is no different.

What got us out of the Great Depression weren’t the government spending and work programs of the Roosevelt administration, or even WWII, as most people think. What got us out of the Great Depression was the tremendous influx of gold from Europe. As European factories became producers of guns, tanks, ammo, and airplanes, the consumer goods had to be purchased from the U.S. Their method of payment was gold, which caused America to become the holder of 2/3 of the worlds gold reserves. As they destroyed each others factories, our economy began to boom as we supplied them with much needed goods. International trade imbalances took shape as we dominated the global economy. In 1944 at Bretton Woods, forty-four countries met and decided to peg the global currency to the U.S Dollar and it would be redeemable in gold to foreign central banks.

The Vietnam War was not taxed or funded by the selling of war bonds; it was funded by deficit spending alone. The USD printing presses began to heat up, which caused a large gap from gold holdings to widen. France realized the gap and began exchanging the USD for our gold reserves for only $35 an ounce. In 1967, Great Britain devalued the pound and caused another run on gold. While the rest of the world allowed gold to increase in price by free market, the U.S. kept gold undervalued at $35 an ounce. Over 200 tons was leaving our vaults each and every day. In 1971, President Nixon was forced to close the gold window and the Bretton Woods system failed. With the dollar having the “global reserve currency” status, and no longer being backed by gold, we were free to print as much currency as we pleased without restraint. And we did as we still do today. With this reserve status, we are essentially able to tax the entire world by devaluing the USD that they hold. Inflation is considered the silent and hidden tax. The only way to see this is by observing and measuring “Purchasing Power”. For example: The period from 1999-2008 the DOW appeared to be booming as it climbed from 10,000 to 14,000 points. But in terms of “Purchasing Power” it has been tanking and crashed 67%; and that’s before the bust in late 2008!!! How could that be? The market was skyrocketing from 1999-2008 right? Well, No it hasn’t. The reason is INFLATION. Here is the value of the DOW during that period in terms of purchasing power against gold.

In 1999 the DOW was worth 44 oz of gold…
2002; 32 oz of gold
2004; 25 oz of gold
2006; 18 oz of gold
2008; 15 oz of gold
2009; it’s not over, but you can currently buy the DOW for roughly 8 oz of gold.

As you can see, while the DOW shows an increase in dollars, it actually decreases in value. Gold, being the great equalizer adjusts for this inflationary event as it increases in value. That’s the beauty of gold that many people do not understand. The same thing happens when real estate is valued against gold.

But what about the CPI; It doesn’t show inflation as being so bad; right? Well, the CPI is an unreliable measuring stick for a few different reasons. The Bureau of Labor Statistics no longer uses the actual price of the same items year after year as it was meant to do. For political reasons, items are dropped, substituted, and given different values to make the numbers look good. The CPI-U is manipulated by altering housing costs from ownership to renting costs. According to our previous President Bill Clinton, we’re no longer beef eaters as chicken, which is cheaper, was substituted to make the figures look better. Again and again, year after year the basket of goods is manipulated to show favor.

Inflation is an expansion of the currency supply. It is not the rising of prices, but merely a symptom of inflation. The Federal Reserve has many different ways to measure currency supply, but the broadest measurement is reported as M3. In 2006, the FED decided not to report M3 any longer. Why would they hide this important report from the population? Well, here’s why. Since the year 2000, it is estimated from various sources that M3 currency supply has increased 120%!!! Thus, any investment that has not returned at least 120% is underwater. This means the Dow would have to be above 30,000 to have the same value as the turn of the century. M3 is currently increasing at an annual pace of 20%, which is beyond anything the global economy has witnessed in history. The “Invisible Crash” will soon be visible for all to see. During the mean time, and from now on, never measure the value of anything in dollars!!! So, how high will gold go? The better question is, how much stuff will gold buy?

Since it’s proven time and again that gold protects and preserves wealth, we must understand its potential for massive growth and what increases its ultimate purchasing power. First, we must explore the current economic situation. With global trade imbalances, extreme budget deficits, and rampant currency creation, the killer of all is the total U.S. debt and its unfunded liabilities. The national debt well exceeds $11 Trillion and counting. Our unfunded liabilities such as Social Security, Medicare, and other promises to our citizens that have not been paid for well exceeds $120 Trillion and counting. To try to comprehend what the number trillion represents is mind-boggling. One trillion seconds adds up to over 32,000 years. If you took 16 one-dollar bills and placed them side-by-side and stacked them, you would reach the moon and still have enough change to completely bury Los Angeles under a mountain of cash before you reached $100 Trillion.

Every dollar wasted and every dollar printed expands the global supply of every type of currency except two. Gold and Silver are the only currencies they can’t print. History always repeats itself. When a civilization debases its currency supply, all that currency will once again come chasing that same tiny little pile of metal, and gold and silver will revalue themselves measured in those currencies. This will happen to the United States, just as it did to every empire in history

Throughout the history of civilization an epic battle has always been waged. This battle is between currency and money, and is considered the battle of the ages. In blind faith, every government and general population believe currency will win, but gold and silver always defeats as it inevitably revalues. Periodically, the free market automatically rebalances the value of gold/silver against fiat currencies. This pattern has repeated itself time and again since the first great currency crash in Athens in 407 B.C. They were considered one of the greatest civilizations of all time, but were eventually smashed by gold as deficit spending and currency creation got out of control. The next great empire was Rome. Over 750 years, the leaders of Rome inflated their currency supply by debasing the coinage to pay for war, public works projects and various social programs. Yes, they invented welfare. Once again the laws of economics took hold and Rome was burning. The pattern is always the same:
1. The government starts with good money.
2. It rapidly develops economically and socially.
3. Expenditures of layers of public works projects, programs, and military strength are created.
4. Unplanned wars cause them to debase currency to fund the effort.
5. They move away from gold and completely rely on printed fiat.
6. Massive inflation sets in as the currency supply increases.
7. Faith in the currency is lost.
8. The movement out of the inflated currency takes place and the population moves to tangible assets.
9. The currency collapses and a massive transfer of wealth takes place.
10. Those holding precious metals become rich beyond belief.

Gold is and will always be the great equalizer. Can this happen in America? Yes, it’s already taking shape in rapid velocity.

Since the FED opened for business in 1914, the U.S. currency has been borrowed into existence from a private bank (the FED). The FED creates currency out of thin air and charges interest for it. As a result, heavy taxes are created so the government can afford to pay for more currency creation and its interest. If taxes do not cover the interest, every new dollar created greatly devalues all the other dollars in existence. This gives birth to inflation. *Note: If we pay back all the currency that was borrowed into existence, we still owe the interest. How do we pay the interest if all the currency is paid back? We borrow more into existence. Every pyramid scheme flourishes in its early days and our economic system is no different.

What got us out of the Great Depression weren’t the government spending and work programs of the Roosevelt administration, or even WWII, as most people think. What got us out of the Great Depression was the tremendous influx of gold from Europe. As European factories became producers of guns, tanks, ammo, and airplanes, the consumer goods had to be purchased from the U.S. Their method of payment was gold, which caused America to become the holder of 2/3 of the worlds gold reserves. As they destroyed each others factories, our economy began to boom as we supplied them with much needed goods. International trade imbalances took shape as we dominated the global economy. In 1944 at Bretton Woods, forty-four countries met and decided to peg the global currency to the U.S Dollar and it would be redeemable in gold to foreign central banks.

The Vietnam War was not taxed or funded by the selling of war bonds; it was funded by deficit spending alone. The USD printing presses began to heat up, which caused a large gap from gold holdings to widen. France realized the gap and began exchanging the USD for our gold reserves for only $35 an ounce. In 1967, Great Britain devalued the pound and caused another run on gold. While the rest of the world allowed gold to increase in price by free market, the U.S. kept gold undervalued at $35 an ounce. Over 200 tons was leaving our vaults each and every day. In 1971, President Nixon was forced to close the gold window and the Bretton Woods system failed. With the dollar having the “global reserve currency” status, and no longer being backed by gold, we were free to print as much currency as we pleased without restraint. And we did as we still do today. With this reserve status, we are essentially able to tax the entire world by devaluing the USD that they hold. Inflation is considered the silent and hidden tax. The only way to see this is by observing and measuring “Purchasing Power”. For example: The period from 1999-2008 the DOW appeared to be booming as it climbed from 10,000 to 14,000 points. But in terms of “Purchasing Power” it has been tanking and crashed 67%; and that’s before the bust in late 2008!!! How could that be? The market was skyrocketing from 1999-2008 right? Well, No it hasn’t. The reason is INFLATION. Here is the value of the DOW during that period in terms of purchasing power against gold.

In 1999 the DOW was worth 44 oz of gold…
2002; 32 oz of gold
2004; 25 oz of gold
2006; 18 oz of gold
2008; 15 oz of gold
2009; it’s not over, but you can currently buy the DOW for roughly 8 oz of gold.

As you can see, while the DOW shows an increase in dollars, it actually decreases in value. Gold, being the great equalizer adjusts for this inflationary event as it increases in value. That’s the beauty of gold that many people do not understand. The same thing happens when real estate is valued against gold.

But what about the CPI; It doesn’t show inflation as being so bad; right? Well, the CPI is an unreliable measuring stick for a few different reasons. The Bureau of Labor Statistics no longer uses the actual price of the same items year after year as it was meant to do. For political reasons, items are dropped, substituted, and given different values to make the numbers look good. The CPI-U is manipulated by altering housing costs from ownership to renting costs. According to our previous President Bill Clinton, we’re no longer beef eaters as chicken, which is cheaper, was substituted to make the figures look better. Again and again, year after year the basket of goods is manipulated to show favor.

Inflation is an expansion of the currency supply. It is not the rising of prices, but merely a symptom of inflation. The Federal Reserve has many different ways to measure currency supply, but the broadest measurement is reported as M3. In 2006, the FED decided not to report M3 any longer. Why would they hide this important report from the population? Well, here’s why. Since the year 2000, it is estimated from various sources that M3 currency supply has increased 120%!!! Thus, any investment that has not returned at least 120% is underwater. This means the Dow would have to be above 30,000 to have the same value as the turn of the century. M3 is currently increasing at an annual pace of 20%, which is beyond anything the global economy has witnessed in history. The “Invisible Crash” will soon be visible for all to see. During the mean time, and from now on, never measure the value of anything in dollars!!! So, how high will gold go? The better question is, how much stuff will gold buy?

Since it’s proven time and again that gold protects and preserves wealth, we must understand its potential for massive growth and what increases its ultimate purchasing power. First, we must explore the current economic situation. With global trade imbalances, extreme budget deficits, and rampant currency creation, the killer of all is the total U.S. debt and its unfunded liabilities. The national debt well exceeds $11 Trillion and counting. Our unfunded liabilities such as Social Security, Medicare, and other promises to our citizens that have not been paid for well exceeds $120 Trillion and counting. To try to comprehend what the number trillion represents is mind-boggling. One trillion seconds adds up to over 32,000 years. If you took 16 one-dollar bills and placed them side-by-side and stacked them, you would reach the moon and still have enough change to completely bury Los Angeles under a mountain of cash before you reached $100 Trillion.

Every dollar wasted and every dollar printed expands the global supply of every type of currency except two. Gold and Silver are the only currencies they can’t print. History always repeats itself. When a civilization debases its currency supply, all that currency will once again come chasing that same tiny little pile of metal, and gold and silver will revalue themselves measured in those currencies. This will happen to the United States, just as it did to every empire in history

Throughout the history of civilization an epic battle has always been waged. This battle is between currency and money, and is considered the battle of the ages. In blind faith, every government and general population believe currency will win, but gold and silver always defeats as it inevitably revalues. Periodically, the free market automatically rebalances the value of gold/silver against fiat currencies. This pattern has repeated itself time and again since the first great currency crash in Athens in 407 B.C. They were considered one of the greatest civilizations of all time, but were eventually smashed by gold as deficit spending and currency creation got out of control. The next great empire was Rome. Over 750 years, the leaders of Rome inflated their currency supply by debasing the coinage to pay for war, public works projects and various social programs. Yes, they invented welfare. Once again the laws of economics took hold and Rome was burning. The pattern is always the same:
1. The government starts with good money.
2. It rapidly develops economically and socially.
3. Expenditures of layers of public works projects, programs, and military strength are created.
4. Unplanned wars cause them to debase currency to fund the effort.
5. They move away from gold and completely rely on printed fiat.
6. Massive inflation sets in as the currency supply increases.
7. Faith in the currency is lost.
8. The movement out of the inflated currency takes place and the population moves to tangible assets.
9. The currency collapses and a massive transfer of wealth takes place.
10. Those holding precious metals become rich beyond belief.

Gold is and will always be the great equalizer. Can this happen in America? Yes, it’s already taking shape in rapid velocity.

Since the FED opened for business in 1914, the U.S. currency has been borrowed into existence from a private bank (the FED). The FED creates currency out of thin air and charges interest for it. As a result, heavy taxes are created so the government can afford to pay for more currency creation and its interest. If taxes do not cover the interest, every new dollar created greatly devalues all the other dollars in existence. This gives birth to inflation. *Note: If we pay back all the currency that was borrowed into existence, we still owe the interest. How do we pay the interest if all the currency is paid back? We borrow more into existence. Every pyramid scheme flourishes in its early days and our economic system is no different.

What got us out of the Great Depression weren’t the government spending and work programs of the Roosevelt administration, or even WWII, as most people think. What got us out of the Great Depression was the tremendous influx of gold from Europe. As European factories became producers of guns, tanks, ammo, and airplanes, the consumer goods had to be purchased from the U.S. Their method of payment was gold, which caused America to become the holder of 2/3 of the worlds gold reserves. As they destroyed each others factories, our economy began to boom as we supplied them with much needed goods. International trade imbalances took shape as we dominated the global economy. In 1944 at Bretton Woods, forty-four countries met and decided to peg the global currency to the U.S Dollar and it would be redeemable in gold to foreign central banks.

The Vietnam War was not taxed or funded by the selling of war bonds; it was funded by deficit spending alone. The USD printing presses began to heat up, which caused a large gap from gold holdings to widen. France realized the gap and began exchanging the USD for our gold reserves for only $35 an ounce. In 1967, Great Britain devalued the pound and caused another run on gold. While the rest of the world allowed gold to increase in price by free market, the U.S. kept gold undervalued at $35 an ounce. Over 200 tons was leaving our vaults each and every day. In 1971, President Nixon was forced to close the gold window and the Bretton Woods system failed. With the dollar having the “global reserve currency” status, and no longer being backed by gold, we were free to print as much currency as we pleased without restraint. And we did as we still do today. With this reserve status, we are essentially able to tax the entire world by devaluing the USD that they hold. Inflation is considered the silent and hidden tax. The only way to see this is by observing and measuring “Purchasing Power”. For example: The period from 1999-2008 the DOW appeared to be booming as it climbed from 10,000 to 14,000 points. But in terms of “Purchasing Power” it has been tanking and crashed 67%; and that’s before the bust in late 2008!!! How could that be? The market was skyrocketing from 1999-2008 right? Well, No it hasn’t. The reason is INFLATION. Here is the value of the DOW during that period in terms of purchasing power against gold.

In 1999 the DOW was worth 44 oz of gold…
2002; 32 oz of gold
2004; 25 oz of gold
2006; 18 oz of gold
2008; 15 oz of gold
2009; it’s not over, but you can currently buy the DOW for roughly 8 oz of gold.

As you can see, while the DOW shows an increase in dollars, it actually decreases in value. Gold, being the great equalizer adjusts for this inflationary event as it increases in value. That’s the beauty of gold that many people do not understand. The same thing happens when real estate is valued against gold.

But what about the CPI; It doesn’t show inflation as being so bad; right? Well, the CPI is an unreliable measuring stick for a few different reasons. The Bureau of Labor Statistics no longer uses the actual price of the same items year after year as it was meant to do. For political reasons, items are dropped, substituted, and given different values to make the numbers look good. The CPI-U is manipulated by altering housing costs from ownership to renting costs. According to our previous President Bill Clinton, we’re no longer beef eaters as chicken, which is cheaper, was substituted to make the figures look better. Again and again, year after year the basket of goods is manipulated to show favor.

Inflation is an expansion of the currency supply. It is not the rising of prices, but merely a symptom of inflation. The Federal Reserve has many different ways to measure currency supply, but the broadest measurement is reported as M3. In 2006, the FED decided not to report M3 any longer. Why would they hide this important report from the population? Well, here’s why. Since the year 2000, it is estimated from various sources that M3 currency supply has increased 120%!!! Thus, any investment that has not returned at least 120% is underwater. This means the Dow would have to be above 30,000 to have the same value as the turn of the century. M3 is currently increasing at an annual pace of 20%, which is beyond anything the global economy has witnessed in history. The “Invisible Crash” will soon be visible for all to see. During the mean time, and from now on, never measure the value of anything in dollars!!! So, how high will gold go? The better question is, how much stuff will gold buy?

Since it’s proven time and again that gold protects and preserves wealth, we must understand its potential for massive growth and what increases its ultimate purchasing power. First, we must explore the current economic situation. With global trade imbalances, extreme budget deficits, and rampant currency creation, the killer of all is the total U.S. debt and its unfunded liabilities. The national debt well exceeds $11 Trillion and counting. Our unfunded liabilities such as Social Security, Medicare, and other promises to our citizens that have not been paid for well exceeds $120 Trillion and counting. To try to comprehend what the number trillion represents is mind-boggling. One trillion seconds adds up to over 32,000 years. If you took 16 one-dollar bills and placed them side-by-side and stacked them, you would reach the moon and still have enough change to completely bury Los Angeles under a mountain of cash before you reached $100 Trillion.

Every dollar wasted and every dollar printed expands the global supply of every type of currency except two. Gold and Silver are the only currencies they can’t print. History always repeats itself. When a civilization debases its currency supply, all that currency will once again come chasing that same tiny little pile of metal, and gold and silver will revalue themselves measured in those currencies. This will happen to the United States, just as it did to every empire in history

Throughout the history of civilization an epic battle has always been waged. This battle is between currency and money, and is considered the battle of the ages. In blind faith, every government and general population believe currency will win, but gold and silver always defeats as it inevitably revalues. Periodically, the free market automatically rebalances the value of gold/silver against fiat currencies. This pattern has repeated itself time and again since the first great currency crash in Athens in 407 B.C. They were considered one of the greatest civilizations of all time, but were eventually smashed by gold as deficit spending and currency creation got out of control. The next great empire was Rome. Over 750 years, the leaders of Rome inflated their currency supply by debasing the coinage to pay for war, public works projects and various social programs. Yes, they invented welfare. Once again the laws of economics took hold and Rome was burning. The pattern is always the same:
1. The government starts with good money.
2. It rapidly develops economically and socially.
3. Expenditures of layers of public works projects, programs, and military strength are created.
4. Unplanned wars cause them to debase currency to fund the effort.
5. They move away from gold and completely rely on printed fiat.
6. Massive inflation sets in as the currency supply increases.
7. Faith in the currency is lost.
8. The movement out of the inflated currency takes place and the population moves to tangible assets.
9. The currency collapses and a massive transfer of wealth takes place.
10. Those holding precious metals become rich beyond belief.

Gold is and will always be the great equalizer. Can this happen in America? Yes, it’s already taking shape in rapid velocity.

Since the FED opened for business in 1914, the U.S. currency has been borrowed into existence from a private bank (the FED). The FED creates currency out of thin air and charges interest for it. As a result, heavy taxes are created so the government can afford to pay for more currency creation and its interest. If taxes do not cover the interest, every new dollar created greatly devalues all the other dollars in existence. This gives birth to inflation. *Note: If we pay back all the currency that was borrowed into existence, we still owe the interest. How do we pay the interest if all the currency is paid back? We borrow more into existence. Every pyramid scheme flourishes in its early days and our economic system is no different.

What got us out of the Great Depression weren’t the government spending and work programs of the Roosevelt administration, or even WWII, as most people think. What got us out of the Great Depression was the tremendous influx of gold from Europe. As European factories became producers of guns, tanks, ammo, and airplanes, the consumer goods had to be purchased from the U.S. Their method of payment was gold, which caused America to become the holder of 2/3 of the worlds gold reserves. As they destroyed each others factories, our economy began to boom as we supplied them with much needed goods. International trade imbalances took shape as we dominated the global economy. In 1944 at Bretton Woods, forty-four countries met and decided to peg the global currency to the U.S Dollar and it would be redeemable in gold to foreign central banks.

The Vietnam War was not taxed or funded by the selling of war bonds; it was funded by deficit spending alone. The USD printing presses began to heat up, which caused a large gap from gold holdings to widen. France realized the gap and began exchanging the USD for our gold reserves for only $35 an ounce. In 1967, Great Britain devalued the pound and caused another run on gold. While the rest of the world allowed gold to increase in price by free market, the U.S. kept gold undervalued at $35 an ounce. Over 200 tons was leaving our vaults each and every day. In 1971, President Nixon was forced to close the gold window and the Bretton Woods system failed. With the dollar having the “global reserve currency” status, and no longer being backed by gold, we were free to print as much currency as we pleased without restraint. And we did as we still do today. With this reserve status, we are essentially able to tax the entire world by devaluing the USD that they hold. Inflation is considered the silent and hidden tax. The only way to see this is by observing and measuring “Purchasing Power”. For example: The period from 1999-2008 the DOW appeared to be booming as it climbed from 10,000 to 14,000 points. But in terms of “Purchasing Power” it has been tanking and crashed 67%; and that’s before the bust in late 2008!!! How could that be? The market was skyrocketing from 1999-2008 right? Well, No it hasn’t. The reason is INFLATION. Here is the value of the DOW during that period in terms of purchasing power against gold.

In 1999 the DOW was worth 44 oz of gold…
2002; 32 oz of gold
2004; 25 oz of gold
2006; 18 oz of gold
2008; 15 oz of gold
2009; it’s not over, but you can currently buy the DOW for roughly 8 oz of gold.

As you can see, while the DOW shows an increase in dollars, it actually decreases in value. Gold, being the great equalizer adjusts for this inflationary event as it increases in value. That’s the beauty of gold that many people do not understand. The same thing happens when real estate is valued against gold.

But what about the CPI; It doesn’t show inflation as being so bad; right? Well, the CPI is an unreliable measuring stick for a few different reasons. The Bureau of Labor Statistics no longer uses the actual price of the same items year after year as it was meant to do. For political reasons, items are dropped, substituted, and given different values to make the numbers look good. The CPI-U is manipulated by altering housing costs from ownership to renting costs. According to our previous President Bill Clinton, we’re no longer beef eaters as chicken, which is cheaper, was substituted to make the figures look better. Again and again, year after year the basket of goods is manipulated to show favor.

Inflation is an expansion of the currency supply. It is not the rising of prices, but merely a symptom of inflation. The Federal Reserve has many different ways to measure currency supply, but the broadest measurement is reported as M3. In 2006, the FED decided not to report M3 any longer. Why would they hide this important report from the population? Well, here’s why. Since the year 2000, it is estimated from various sources that M3 currency supply has increased 120%!!! Thus, any investment that has not returned at least 120% is underwater. This means the Dow would have to be above 30,000 to have the same value as the turn of the century. M3 is currently increasing at an annual pace of 20%, which is beyond anything the global economy has witnessed in history. The “Invisible Crash” will soon be visible for all to see. During the mean time, and from now on, never measure the value of anything in dollars!!! So, how high will gold go? The better question is, how much stuff will gold buy?

Since it’s proven time and again that gold protects and preserves wealth, we must understand its potential for massive growth and what increases its ultimate purchasing power. First, we must explore the current economic situation. With global trade imbalances, extreme budget deficits, and rampant currency creation, the killer of all is the total U.S. debt and its unfunded liabilities. The national debt well exceeds $11 Trillion and counting. Our unfunded liabilities such as Social Security, Medicare, and other promises to our citizens that have not been paid for well exceeds $120 Trillion and counting. To try to comprehend what the number trillion represents is mind-boggling. One trillion seconds adds up to over 32,000 years. If you took 16 one-dollar bills and placed them side-by-side and stacked them, you would reach the moon and still have enough change to completely bury Los Angeles under a mountain of cash before you reached $100 Trillion.

Every dollar wasted and every dollar printed expands the global supply of every type of currency except two. Gold and Silver are the only currencies they can’t print. History always repeats itself. When a civilization debases its currency supply, all that currency will once again come chasing that same tiny little pile of metal, and gold and silver will revalue themselves measured in those currencies. This will happen to the United States, just as it did to every empire in history

Throughout the history of civilization an epic battle has always been waged. This battle is between currency and money, and is considered the battle of the ages. In blind faith, every government and general population believe currency will win, but gold and silver always defeats as it inevitably revalues. Periodically, the free market automatically rebalances the value of gold/silver against fiat currencies. This pattern has repeated itself time and again since the first great currency crash in Athens in 407 B.C. They were considered one of the greatest civilizations of all time, but were eventually smashed by gold as deficit spending and currency creation got out of control. The next great empire was Rome. Over 750 years, the leaders of Rome inflated their currency supply by debasing the coinage to pay for war, public works projects and various social programs. Yes, they invented welfare. Once again the laws of economics took hold and Rome was burning. The pattern is always the same:
1. The government starts with good money.
2. It rapidly develops economically and socially.
3. Expenditures of layers of public works projects, programs, and military strength are created.
4. Unplanned wars cause them to debase currency to fund the effort.
5. They move away from gold and completely rely on printed fiat.
6. Massive inflation sets in as the currency supply increases.
7. Faith in the currency is lost.
8. The movement out of the inflated currency takes place and the population moves to tangible assets.
9. The currency collapses and a massive transfer of wealth takes place.
10. Those holding precious metals become rich beyond belief.

Gold is and will always be the great equalizer. Can this happen in America? Yes, it’s already taking shape in rapid velocity.

Since the FED opened for business in 1914, the U.S. currency has been borrowed into existence from a private bank (the FED). The FED creates currency out of thin air and charges interest for it. As a result, heavy taxes are created so the government can afford to pay for more currency creation and its interest. If taxes do not cover the interest, every new dollar created greatly devalues all the other dollars in existence. This gives birth to inflation. *Note: If we pay back all the currency that was borrowed into existence, we still owe the interest. How do we pay the interest if all the currency is paid back? We borrow more into existence. Every pyramid scheme flourishes in its early days and our economic system is no different.

What got us out of the Great Depression weren’t the government spending and work programs of the Roosevelt administration, or even WWII, as most people think. What got us out of the Great Depression was the tremendous influx of gold from Europe. As European factories became producers of guns, tanks, ammo, and airplanes, the consumer goods had to be purchased from the U.S. Their method of payment was gold, which caused America to become the holder of 2/3 of the worlds gold reserves. As they destroyed each others factories, our economy began to boom as we supplied them with much needed goods. International trade imbalances took shape as we dominated the global economy. In 1944 at Bretton Woods, forty-four countries met and decided to peg the global currency to the U.S Dollar and it would be redeemable in gold to foreign central banks.

The Vietnam War was not taxed or funded by the selling of war bonds; it was funded by deficit spending alone. The USD printing presses began to heat up, which caused a large gap from gold holdings to widen. France realized the gap and began exchanging the USD for our gold reserves for only $35 an ounce. In 1967, Great Britain devalued the pound and caused another run on gold. While the rest of the world allowed gold to increase in price by free market, the U.S. kept gold undervalued at $35 an ounce. Over 200 tons was leaving our vaults each and every day. In 1971, President Nixon was forced to close the gold window and the Bretton Woods system failed. With the dollar having the “global reserve currency” status, and no longer being backed by gold, we were free to print as much currency as we pleased without restraint. And we did as we still do today. With this reserve status, we are essentially able to tax the entire world by devaluing the USD that they hold. Inflation is considered the silent and hidden tax. The only way to see this is by observing and measuring “Purchasing Power”. For example: The period from 1999-2008 the DOW appeared to be booming as it climbed from 10,000 to 14,000 points. But in terms of “Purchasing Power” it has been tanking and crashed 67%; and that’s before the bust in late 2008!!! How could that be? The market was skyrocketing from 1999-2008 right? Well, No it hasn’t. The reason is INFLATION. Here is the value of the DOW during that period in terms of purchasing power against gold.

In 1999 the DOW was worth 44 oz of gold…
2002; 32 oz of gold
2004; 25 oz of gold
2006; 18 oz of gold
2008; 15 oz of gold
2009; it’s not over, but you can currently buy the DOW for roughly 8 oz of gold.

As you can see, while the DOW shows an increase in dollars, it actually decreases in value. Gold, being the great equalizer adjusts for this inflationary event as it increases in value. That’s the beauty of gold that many people do not understand. The same thing happens when real estate is valued against gold.

But what about the CPI; It doesn’t show inflation as being so bad; right? Well, the CPI is an unreliable measuring stick for a few different reasons. The Bureau of Labor Statistics no longer uses the actual price of the same items year after year as it was meant to do. For political reasons, items are dropped, substituted, and given different values to make the numbers look good. The CPI-U is manipulated by altering housing costs from ownership to renting costs. According to our previous President Bill Clinton, we’re no longer beef eaters as chicken, which is cheaper, was substituted to make the figures look better. Again and again, year after year the basket of goods is manipulated to show favor.

Inflation is an expansion of the currency supply. It is not the rising of prices, but merely a symptom of inflation. The Federal Reserve has many different ways to measure currency supply, but the broadest measurement is reported as M3. In 2006, the FED decided not to report M3 any longer. Why would they hide this important report from the population? Well, here’s why. Since the year 2000, it is estimated from various sources that M3 currency supply has increased 120%!!! Thus, any investment that has not returned at least 120% is underwater. This means the Dow would have to be above 30,000 to have the same value as the turn of the century. M3 is currently increasing at an annual pace of 20%, which is beyond anything the global economy has witnessed in history. The “Invisible Crash” will soon be visible for all to see. During the mean time, and from now on, never measure the value of anything in dollars!!! So, how high will gold go? The better question is, how much stuff will gold buy?

Since it’s proven time and again that gold protects and preserves wealth, we must understand its potential for massive growth and what increases its ultimate purchasing power. First, we must explore the current economic situation. With global trade imbalances, extreme budget deficits, and rampant currency creation, the killer of all is the total U.S. debt and its unfunded liabilities. The national debt well exceeds $11 Trillion and counting. Our unfunded liabilities such as Social Security, Medicare, and other promises to our citizens that have not been paid for well exceeds $120 Trillion and counting. To try to comprehend what the number trillion represents is mind-boggling. One trillion seconds adds up to over 32,000 years. If you took 16 one-dollar bills and placed them side-by-side and stacked them, you would reach the moon and still have enough change to completely bury Los Angeles under a mountain of cash before you reached $100 Trillion.

Every dollar wasted and every dollar printed expands the global supply of every type of currency except two. Gold and Silver are the only currencies they can’t print. History always repeats itself. When a civilization debases its currency supply, all that currency will once again come chasing that same tiny little pile of metal, and gold and silver will revalue themselves measured in those currencies. This will happen to the United States, just as it did to every empire in history

Throughout the history of civilization an epic battle has always been waged. This battle is between currency and money, and is considered the battle of the ages. In blind faith, every government and general population believe currency will win, but gold and silver always defeats as it inevitably revalues. Periodically, the free market automatically rebalances the value of gold/silver against fiat currencies. This pattern has repeated itself time and again since the first great currency crash in Athens in 407 B.C. They were considered one of the greatest civilizations of all time, but were eventually smashed by gold as deficit spending and currency creation got out of control. The next great empire was Rome. Over 750 years, the leaders of Rome inflated their currency supply by debasing the coinage to pay for war, public works projects and various social programs. Yes, they invented welfare. Once again the laws of economics took hold and Rome was burning. The pattern is always the same:
1. The government starts with good money.
2. It rapidly develops economically and socially.
3. Expenditures of layers of public works projects, programs, and military strength are created.
4. Unplanned wars cause them to debase currency to fund the effort.
5. They move away from gold and completely rely on printed fiat.
6. Massive inflation sets in as the currency supply increases.
7. Faith in the currency is lost.
8. The movement out of the inflated currency takes place and the population moves to tangible assets.
9. The currency collapses and a massive transfer of wealth takes place.
10. Those holding precious metals become rich beyond belief.

Gold is and will always be the great equalizer. Can this happen in America? Yes, it’s already taking shape in rapid velocity.

Since the FED opened for business in 1914, the U.S. currency has been borrowed into existence from a private bank (the FED). The FED creates currency out of thin air and charges interest for it. As a result, heavy taxes are created so the government can afford to pay for more currency creation and its interest. If taxes do not cover the interest, every new dollar created greatly devalues all the other dollars in existence. This gives birth to inflation. *Note: If we pay back all the currency that was borrowed into existence, we still owe the interest. How do we pay the interest if all the currency is paid back? We borrow more into existence. Every pyramid scheme flourishes in its early days and our economic system is no different.

What got us out of the Great Depression weren’t the government spending and work programs of the Roosevelt administration, or even WWII, as most people think. What got us out of the Great Depression was the tremendous influx of gold from Europe. As European factories became producers of guns, tanks, ammo, and airplanes, the consumer goods had to be purchased from the U.S. Their method of payment was gold, which caused America to become the holder of 2/3 of the worlds gold reserves. As they destroyed each others factories, our economy began to boom as we supplied them with much needed goods. International trade imbalances took shape as we dominated the global economy. In 1944 at Bretton Woods, forty-four countries met and decided to peg the global currency to the U.S Dollar and it would be redeemable in gold to foreign central banks.

The Vietnam War was not taxed or funded by the selling of war bonds; it was funded by deficit spending alone. The USD printing presses began to heat up, which caused a large gap from gold holdings to widen. France realized the gap and began exchanging the USD for our gold reserves for only $35 an ounce. In 1967, Great Britain devalued the pound and caused another run on gold. While the rest of the world allowed gold to increase in price by free market, the U.S. kept gold undervalued at $35 an ounce. Over 200 tons was leaving our vaults each and every day. In 1971, President Nixon was forced to close the gold window and the Bretton Woods system failed. With the dollar having the “global reserve currency” status, and no longer being backed by gold, we were free to print as much currency as we pleased without restraint. And we did as we still do today. With this reserve status, we are essentially able to tax the entire world by devaluing the USD that they hold. Inflation is considered the silent and hidden tax. The only way to see this is by observing and measuring “Purchasing Power”. For example: The period from 1999-2008 the DOW appeared to be booming as it climbed from 10,000 to 14,000 points. But in terms of “Purchasing Power” it has been tanking and crashed 67%; and that’s before the bust in late 2008!!! How could that be? The market was skyrocketing from 1999-2008 right? Well, No it hasn’t. The reason is INFLATION. Here is the value of the DOW during that period in terms of purchasing power against gold.

In 1999 the DOW was worth 44 oz of gold…
2002; 32 oz of gold
2004; 25 oz of gold
2006; 18 oz of gold
2008; 15 oz of gold
2009; it’s not over, but you can currently buy the DOW for roughly 8 oz of gold.

As you can see, while the DOW shows an increase in dollars, it actually decreases in value. Gold, being the great equalizer adjusts for this inflationary event as it increases in value. That’s the beauty of gold that many people do not understand. The same thing happens when real estate is valued against gold.

But what about the CPI; It doesn’t show inflation as being so bad; right? Well, the CPI is an unreliable measuring stick for a few different reasons. The Bureau of Labor Statistics no longer uses the actual price of the same items year after year as it was meant to do. For political reasons, items are dropped, substituted, and given different values to make the numbers look good. The CPI-U is manipulated by altering housing costs from ownership to renting costs. According to our previous President Bill Clinton, we’re no longer beef eaters as chicken, which is cheaper, was substituted to make the figures look better. Again and again, year after year the basket of goods is manipulated to show favor.

Inflation is an expansion of the currency supply. It is not the rising of prices, but merely a symptom of inflation. The Federal Reserve has many different ways to measure currency supply, but the broadest measurement is reported as M3. In 2006, the FED decided not to report M3 any longer. Why would they hide this important report from the population? Well, here’s why. Since the year 2000, it is estimated from various sources that M3 currency supply has increased 120%!!! Thus, any investment that has not returned at least 120% is underwater. This means the Dow would have to be above 30,000 to have the same value as the turn of the century. M3 is currently increasing at an annual pace of 20%, which is beyond anything the global economy has witnessed in history. The “Invisible Crash” will soon be visible for all to see. During the mean time, and from now on, never measure the value of anything in dollars!!! So, how high will gold go? The better question is, how much stuff will gold buy?

Since it’s proven time and again that gold protects and preserves wealth, we must understand its potential for massive growth and what increases its ultimate purchasing power. First, we must explore the current economic situation. With global trade imbalances, extreme budget deficits, and rampant currency creation, the killer of all is the total U.S. debt and its unfunded liabilities. The national debt well exceeds $11 Trillion and counting. Our unfunded liabilities such as Social Security, Medicare, and other promises to our citizens that have not been paid for well exceeds $120 Trillion and counting. To try to comprehend what the number trillion represents is mind-boggling. One trillion seconds adds up to over 32,000 years. If you took 16 one-dollar bills and placed them side-by-side and stacked them, you would reach the moon and still have enough change to completely bury Los Angeles under a mountain of cash before you reached $100 Trillion.

Every dollar wasted and every dollar printed expands the global supply of every type of currency except two. Gold and Silver are the only currencies they can’t print. History always repeats itself. When a civilization debases its currency supply, all that currency will once again come chasing that same tiny little pile of metal, and gold and silver will revalue themselves measured in those currencies. This will happen to the United States, just as it did to every empire in history blogs.wsj.com/economics/2010/06/09/bernanke-puzzled-by-gold-rally/