If President Obama Told the Truth Then You Need to Buy Gold

“The long term deficit and debt that we have accumulated is unsustainable…we

just can’t keep on borrowing from China or from other countries because part

of it is…we have to pay interest on that debt and that means that we’re

mortgaging our children’s future with more and more debt. But what’s also true

is that at some point they are just going to get tired of buying our debt and

when that happens we will really have to raise interest rates to be able to

borrow and that will raise interest rates for everybody….on your auto loan, on

your mortgage….”

President Obama

May 14, 2009

You can see and hear the President say these words here:

Since that date what has happened?

• The Debt Ceiling has gone from $12.104 trillion in February 2009 to $14.3

trillion in January 2010. That is an 18% increase.

• Treasury Secretary Geithner was laughed at by Chinese students when he

suggested that the Chinese government could continue to safely invest in US

debt.

• “The 10-year outlook released by the nonpartisan Congressional Budget Office

is somewhat gloomier than White House projections, which found that

Obama’s budget request would produce deficits that would add about $8.5

trillion to the national debt by 2020.” (Washington Post March 6, 2010)

If the accumulated debt was not sustainable at $12.104 trillion in May 2009 why is it

any more sustainable now at $14.3 trillion and why would it be any more sustainable

when it goes to over $20 trillion in an interest rate environment that will certainly be

more hostile than it is today?

In April 1933 President Roosevelt decreed that the people of the United States must

hand in their gold because,

“The continued private hoarding of gold and silver by subjects of the United States

poses a grave threat to the peace, equal justice, and well-being of the United States;

and that appropriate measures must be taken immediately to protect the interests of

our people.”

That declaration was and remains an insult to the people of the United States.

Roosevelt promptly re-valued the confiscated gold by 69%. Approximately 500 tonnes

were “voluntarily” handed in by the public. In today’s terms 500 tonnes is worth

$18.08 billion. Therefore the initial “theft” by Roosevelt deprived US citizens of around

$12.47 billion in today’s dollars.

Even though the law allowing confiscation has not been repealed, any act by the

government to repeat Roosevelt’s scam would clearly not succeed with a public that

is much more aware and better armed. In any case, such an act would be an

admission that the US Dollar is burnt toast and would result in a mass panic.

In fact the continued existence of the power to confiscate and the refusal to have the

law repealed is a stark reminder that only that which is of value is worth confiscating.

Can you imagine the Government confiscating printed dollars?

In the not too distant future the U.S. Government, as well as those of many other

nations, will find it impossible to continue propping national currencies that are

backed by insurmountable debt rather than liability free precious metals. The still low

interest rate environment and the ignorance of the bulk of the people as to what is

going on, are the last two pawns to fall before it’s too late to buy gold with worthless

printed currency.

Wake up everyone – you are not watching a tsunami coming at you on a big screen. It

is a real tsunami that has already wiped out housing, employment, retirement savings

and your children’s future. A massive destruction of paper debt through multi digit

inflation is headed your way and gold and silver are the only way to save yourselves

from drowning.