Tag Archives: paper money

GO FOR THE GOLD

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The Olympics are in full swing, participants are reaching new heights with the expectation of bringing home the gold; if not gold silver waits in the wings. The real action is not in Rio, but in the gold pits of London and Chicago.  Gold medals are actually made of silver and gold plated with 6 grams of pure gold out of a total weight of 500 grams. The last time the medal was 100% gold was in 1912.

Effectively the medal is a counterfeit. But nothing is new here, the United States has been printing fiat money for years. However, the world is catching on with this ruse; in the not too distant future the Ponzi scheme will be over. Gold will again rule the roost, paper currency will only be worth the paper it is printed on. In case Americans have noticed the price of gold and silver has soared during the past year reminding us of a pole vaulter whose pole sprung him/her over the bar in whip like fashion to take the gold.

Throughout history gold has been the medium of exchange; the store of value. Paper money displaced gold early in the 17th century; first used in Massachusetts then by the states during the Civil War. The banking industry’s genesis was initiated early on by warehouses which issued a receipt – thus a warehouse receipt– entitling the holder to redeem the receipt for the said amount of gold as defined in the receipt. As the industry blossomed it became apparent that the holders of receipts very rarely requested the physical gold; they only transferred the receipts. Thus the warehouses evolved into lenders realizing that a call for 100 percent of the gold at any one time was not a probability.

The 18th through the 21st century became the glory days of gold. Banks became behemoths lending more gold than they had in inventory. When a run on a bank occurred, which it ultimately did, culminating in bankruptcy and ruin. As the United States entered the 20th century as the world’s big money player the world treated the dollar as if it was good as gold.

This was true up until 1971.  Not dismissing the illegal taking of individuals gold by FDR back in 1933 (see executive order 6102).  The world was on the path of becoming a dynamic and risky adventure from 1971 on; the dollar was no longer convertible to gold, the dream of El Dorado became a reality by inventing paper gold on a scale never seen before. The physical gold window had closed, the dollar pyramid scheme began.  Hence the printing of paper money on a scale never seen before. Economies were on financial cocaine, a euphoria that is still manifested by governments gone wild. More printing enabled the exalted to exert control of economies, countries and world politics. But good times don’t last forever.

Entering the 21st century has proved that the dollar panacea has a long reach, but things can changes in a quant moment. Across the globe one country after another has defaulted; Greece and Argentina head the list. Is it possible that the United States is next?  A probability that cannot be counted out. What brings us to that conclusion is the loss of faith in the United States. We are no longer control world events – Obama saw to it.

Future obligations are the tail wagging the dog and that is about to become the albatross under our neck for the next two decades. Obligations are coming due. And the question remains, who will be responsible to pay them. for sure you can’t count on today’s youth to hand over their hard earned cash.   17 Trillion and counting is a gargantua number, that is just debt, counting social security, medicate obligations and interest on the debt we are looking at a google type number closer to 100 trillion. $100,000,000,0000,0000.

Another relevant question to ask a politician of the goldbrick variety is:  Will we ever be able to pay back the money we owe?   Don’t expect a straight answer.  The next question is, Will gold provide a solution to political largesse?

REPEAT OF SEPTEMBER 2015 BLOG – HYPERINFLATION IN THE WINGS – IN GOLD WE TRUST

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GO FOR THE GOLD

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Gold is once again on the rise. The pundits can’t nor are they willing to understand the attraction to gold;  steadfast has it been in an island of global turmoil. Uncertain on what will happen have caused many to insure themselves with the metal.

What have the naysayers missed? One wonders why they even mention gold at all. And the volcanic rise of Trump, Sanders and Carson, not to mention Carly Fiorina who would have thought. The pundits failed to miss their rise too. Americans are fed up with the Boehners, McConnells, Reids, Pelosis, Clintons and Bushes of the world. They are plain old ready for a revolution. teapartylogoredThe boxes of tea in our logo have names on them, Democrats, The Fed, Public Unions, Big Government and entitlements. Yes, Americans are FED UP with do good politicians who only care about getting reelected.

We tell you what, America and the world is in turmoil. The socialists thugs running the paper printing scam are now worried about the next three years, we would not be surprised if some of them commit suicide. They are desperate to find a solution when none except gold exists. They have dug their own grave and now will reap the benefit of disastrous monetary policies over the past 45 years.

February Blog Entry:

PAPER TIGERS – IN GOLD WE TRUST –

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During the past six months we have tried to educate the sceptics that the United States dollar is not worth the paper it is printed on.  The likes of Goldman-Sachs (with a name like Goldman, why would they be bearish on Gold – very confusing to us) forecast a $1000 ounce of gold, others saw an implosion to $500, not so fast says the market. When Goldman speaks people listen or do they? Today gold mounted a robust rally closing over $50 higher as it continues to close in on $1250 per ounce. In the last 30 days gold was as good as gold rising over $150.

To the naysayers out there, look what is happening in the world; in one word it is defined as TURMOIL. Globally people have lost confidence in their leaders – why do you thing Trump is doing so well and on the other side, Hillary the Liar, her momentum stopped dead in New Hampshire. Oh don’t worry she says, we are going South and the FBI, me worry. A little kick-ass by that Sanders fellow in the Palmetto State may be in the cards. Talking about the cards, Hillary then heads for Nevada – Ok Harry Reid is going to be shoveling the manure for Hillary, but what good will that do. Sanders may have a trick or two up his sleeve.

Anyway you look at it, oil tanking, zero interest rates and in some cases negative rates, one would think boom times are here. The average family is saving at least $1000 a year on gas, plus oil and natural gas to heat the abode. Doesn’t seem they are too anxious to spend the savings though. Europe on edge, suicide bombers perfecting their craft, Syria going down in flames. Latin America’s bargain with the devil is not working out so well; just ask the people in Venezuela. And we forgot to mention the dictator in North Korea, shooting his mouth off again. Guess he figures that do to his lack of manhood he would shoot off a missile. Lot of good that did.

Keep your hopes up, things can only get better.  The higher gold goes the worse it will be for the status quo. Remember, the Central Banks were set up by politicians to print money ostensibly to feed their minions, this became the loop for reelection; it continues today. Once the printing stops, the true revolution begins, the free-loaders will no longer be in control, but the men/women of conscince and integrity will once again rule. Work will be rewarded not the other way around.

2014 Blog Post: