This “Uncle Scam” series can go on for maybe 250 episodes, but I’ll try to think of something else eventually. Meantime, one of the most glaring of Uncle Scam’s iniquities, is the fact that he refuses to accept the horrendous damage he has done to everyone of us. How? By refusing to admit that his Monopoly type paper money, is becoming more and more worthless every day, and this is reflected in the plain and indisputable fact that prices are going up in everything we need and use most.
Uncle Scam’s COL or cost of living statistics are about as truthful, as is a side show at a circus. According to Uncle Scam, we are having a miniscule inflation rate of maybe one or two percent. Fat chance! According to reliable sources, the following have gone up since the first of the year, from open to high. Crude Oil up 43%, which gives us $4 gasoline and a huge increase in the price of diesel, which farmers use to grow crops, and trucks and locomotives use to deliver the merchandise, sugar, hay, beets, tomatoes, and flour. Sugar is up 63%, cotton 69%, corn 68%, and cattle 45%.
As commodities go up, naturally the buck slides into oblivion on a gradual basis, which means that those who save their surplus assets in dollars, are being decapitalized. Throughout history, every single civilization or world power, has declined into powerlessness, due to fiscal stupidity and insolvency. Before there was paper money, in ancient Rome, the Emperor used to ’clip’ coins, meaning that he took a sliver of silver off of each coin and made more coins, forcing the citizenry to value them as if the coin were whole. Often times, a more base metal such as brass or copper was substituted for silver or gold, and the same value was forced, as if the coins were of a valuable metal.
Sound familiar? Today, as Uncle Scam prints and prints and prints, the dollar buys less, and less, and less. Not that the scam ends there either. Uncle Scam has now frozen Social Security payments at the same level for two or more years. Us oldsters will pay more for everything, while our checks remain the same. Congress, or course, recently gave itself a raise. What is there to do? Move to Panama? Get out of America? I think that would be a disaster, because one of the favorite words of Latin America seems to be “Revolution!” Go to a nation who has a record of ten or twenty years of stability, and whose language you can’t speak? Not me.
As a nation, we are being squeezed. Towns, counties, and states approach bankruptcy, trying to balance their budgets, while the D.C. Gang prints to pay its bills, and destroys the very instrument (dollars) it and we use to pay bills. The debt ceiling has been reached, so now the Gang is into federal retirement funds to pay. The whole thing is a total fraud anyway, because there are no dollars in the federal retirement fund, any more than there are dollars in the Social Security fund. All just a gigantic Ponzi scheme.
China realizes this and is getting out of dollars. Not too quickly, as if she dumped all at once, the whole shebang would collapse instantly. China sells, and D.C. prints. Some say the collapse of the buck is imminent, but I disagree. The euro is in a deep hole also, thanks to Greece, Portugal, Spain, and Ireland. China’s paper money isn’t too good either, and no currency is backed by anything but shallow promises and worthless politicians. The dollar’s demise will increase in velocity and degree, in my opinion, but will not suddenly become worthless.
Silver is hovering around its low, but the demand is incredible, which offsets the Comex criminal bailout of big name shorts. The big name silver shorts, such as Goldman Sachs, have a huge influence over the Comex, which probably has a third of physical silver in its vaults to cover the contracts it issues. Another big fraud. Please, do not sell at the current bottom. To think that silver or gold can have an unlimited trip downward, defies all common sense. Silver and gold are physical things, which require huge amounts of capital, machinery, and effort to produce, as opposed to paper scrip. Selling now, at the bid price, for fear, is just not wise. Fear of dollars? Yes. Fear of silver going down with the huge demand? No way. Unless that is, if you think that sugar, cotton, gasoline, butter, lumber, tires, cars, and debts will go down. If you think that the price of the previous things will go down, sell your silver and enjoy those decreasing in value paper dollars. Just hold on, and you will not regret it. This is an incredible BUY opportunity, not a sell one. When America’s perilous economic condition metastasizes here and everywhere, prices of tangibles, in dollars, will roar skyward.