That is one of the most common questions asked of myself, son David, and daughter Melissa. Next week? Who knows? Next year? Is the Pope a Catholic? Will the sun rise tomorrow? Will water seek its own level? A year from now, you won’t believe how high it could and will go. Here’s a quote from my favorite book, ATLAS SHRUGGED.
“If you want to know when a society is set to vanish, watch the money. Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of papers. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold is an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day it bounces, marked: account withdrawn.” The novel Atlas Shrugged, was written over many years, and its first edition released over 52 years ago! When you read it, you may be interested to know that Galt’s Gulch was patterned after Ouray Colorado, which Ayn Rand toured in the early 1950’s, and was inspired by that little town’s physical location.
Look at this way, if you want to know if gold and silver will go up in dollars, check a few facts. On Christmas eve, the fed removed all limits on Fannie and Freddie. They can and will loan to one and all, which is an eventual addition to the debt of probably $8 trillion. Sub prime loans continue. Unemployment is way up last week and will continue to be high. The FDIC is overdrawn by $8 billion, but it can print all it wishes to bail out the 1500 or so banks in the US which are in bad condition and may be already bankrupt. The true inflation rate is 9.7% and the true unemployment rate is 22%. The majority of states are hopelessly in debt, because they cannot print to pay bills, like the Fed can. Will the Fed bail them out? I am certain. The Fed has squandered trillions of dollars, and so many, that they are fighting tooth and nail to stop Ron Paul’s bill to have them audited. Stott’s Law, (again) states that, “THE MORE OF ANYTHING THERE IS, THE LESS THEY WILL BE WORTH,” and this includes dollars. The US must borrow $5 trillion this year alone, and who are they going to borrow it from, China? Not likely. They will ’monetize the debt,’ which means they will ’borrow’ it from themselves, or to be literal, they will print it.
Will gold go up? Will Wheaties go up? Will gasoline go up? Will utilities go up? Will everything go up? Yes. Will the purchasing power of dollars go down? Yes. Will the stock market go down? In my opinion, yes. Will gold and silver go up? Of course! We keep nothing on computers, and our customers are on 4″ X 6″ index cards. If I haven’t heard from a client since 2007, I place these cards in a separate file. I have 23 inches of cards, stacked alphabetically and tightly, of customers I haven’t heard from since 2007 or before. 100% of these people have done extremely well in their purchases, mostly tripling, quadrupling or better in dollars. I haven’t heard from them in a long time, I am sure, because they thought that their purchases were made at the ’peak’ of metals prices, and they haven’t bought again, because they still think they will go down, or have again reached their ’peak’ and are afraid to buy more. How silly!
There are 250,000 troops in Afghanistan and Iraq now, and at a million a year each, that’s draining the buck. Tell me how low the buck will go, since probably $5 trillion of them will be printed this year? Or maybe you can tell me how the buck can be propped up, when printing them does the opposite? I can honestly tell you that $5,000 gold is not an impossibility, any more than is $15 a gallon for gasoline, $15 for a gallon of milk, $150,000 for a new Chevy, or dollar prices of anything going through the roof. I recently replaced my dishwasher, refrigerator, washer, and dryer with new ones. The old ones worked perfectly. Why? Because soon, with inflation, they’ll cost a lot more cheap dollars, than I recently paid for them. On Glenn Beck’s show, he has three or four advertisers of gold, all of which are what I call ’used car salesmen,’ but one of them says that the value of gold has gone up. Wrong. Gold is still the same precious metal, and milk is the same cow juice. Have values gone up? No, just prices. Why? Because the Fed is going to print $5 trillion this year, and last year, it printed $2 trillion. In a couple of years, more ARMS will come due, and we’ll go through another real estate crash and more inflation. Hopefully, the idiots in D.C. won’t create another ’false flag operation’ to make them seem important, kill innocents, and further debase the dollar. Does anyone really believe there is a reason to be in Afghanistan, other than to infuriate it and Pakistan?
Most people don’t understand why they should buy gold and silver, even though it is as plain as the nose on your face. You buy gold and silver TO GET OUT OF FAILING DOLLARS. Staying in dollars, is storing your water in a leaky bucket. Staying in dollars, is jumping off a roof with an umbrella as a parachute, which many kids did. IT WON’T WORK. Staying in dollars, is going to make you very poor in a couple of years. Don’t want gold or silver? Fine, then buy butter, gasoline, or any PHYSICAL thing, all of which will go up in dollar prices, as the dollar plunges. Other things are huge, require refrigeration, or large storage spaces, and are difficult to sell if you want to do so. Gold and silver are easily stored, bought, sold, and have been real money throughout history, in all civilizations, and under all governments, good or bad. Get out of bad money (dollars), and into good money, (gold and silver) before the rug is pulled out from under you by hyper-inflation, which is certain to happen. No matter which party is in power, the debt is UNPAYABLE, other than with printing presses, and that is assurance that ALL physical, tangible things will go up in dollar prices. GET OUT OF DOLLARS! No, we don’t advertise, because we don’t need to. We don’t have a $20 million advertising budget, as do one of Glenn’s advertisers. Guess who pays for advertising? Protect yourself.
P.S. I am taking a week off beginning Saturday and going south, so this is the last column till Tuesday, February 2nd. Call my kids for service, They’ll be proud to serve you. I’ll be back at my desk Monday, February 1st.