“Only a Dead Fish Goes With The Flow,” reads a local sign promoting something or other in the financial sector. The outfit is urging you not to go with the flow, or what everyone else does, and go with them, who I am certain, does what the rest does, and that is go with the flow dollars in your savings or other device they sell, to ‘protect you.’ Maybe they would urge you to invest in a savings account which pays about 1% interest, on which you pay taxes of course, even though the government says we have 2% inflation. If you invest $100,000 in a savings account at 1% interest, that’s $1,000 a year, after inflation and before taxes. You’d have to put a million into a savings account to live even halfway decently!
Maybe they want you to buy government bonds, the ten year rate as of today is 2.075%, or over ten years, if you are lucky, you may make three quarters of one percent, after inflation…which is taxable. The outfit with the fish sign, probably doesn’t even know that when you invest in a “T” bill, the money you worked so hard for, is partly used to pay interest on the national debt, owed in great part, to the Federal Reserve, which created the money out of thin air, loaned it to the U.S. Treasury at interest. Who gets the profits from the interest collected? The various national banks who own most of the Fed. Talk about a “Swamp.”
A reader of this screed, e-mailed me the other day and asked why I don’t write a column about silver alone. OK, but it’s all very simple. Silver is less valuable than gold, because there is more of it, it’s easier to mine, requires less smelting and milling, and melts at a lower temperature than gold. It will tarnish, unlike gold, and will require, at this time 85 times as much storage space as gold. Silver has always been less valuable than gold, or the Treasury wouldn’t have issued gold coins in larger denominations in, to prevent their loss. Ever see a U.S. gold, one dollar coin? It’s smaller than a dime, and very easily lost.
Want a loan from a bank? Excellent! If your credit is good, (Banks will never loan to someone who they think doesn’t really need it…in my opinion anyway, and insurance will never be sold to someone who will probably never use it. More of my opinion). If you convince a bank to lend you dollars, they create it out of thin air, and need to have only 10% capital reserves. This is known as the ‘fractional reserve banking system.’ They loan you something they don’t have, but charge you interest on the loan, the dollars of which, they created out of thin air, just like the Federal Reserve. Banks can be VERY profitable! That’s only one segment of our financial system, which is based on debt, and the debt constantly grows. When the debt becomes so large, and the dollar becomes so much less valuable, (inflation, or prices rising), eventually the whole thing will crash here, like it has throughout history in all nations, including ours three times already. Soon?” I doubt it, but I have no ability to predict the future, even ten minutes from now. “Just the facts Mam, we just want the facts,” as Sgt. Friday used to say on the radio show “Dragnet.” The facts are that the entire system is a total fraud, but it will probably keep on chugging for a few more years, with prices going up, meaning the dollar is getting weaker, and metals prices will go up, just like the price of coffee, trucks, and grass seed.
So, as usual, I urge you to store surplus assets in real money which is not controlled by government…gold and silver. Thieves made out real well this week, stealing $30 million with of gold ‘kilo’ bars, which of course have no deed or title on them. Hauled them away in a small pickup truck, and haven’t been seen since. Can you imagine $30 million worth of silver being hauled away? How many pickups? Two dozen or more? I LOVE silver, and have it, but it takes up a lot of space. If we ever need to barter, silver is the best bet, and everyone should have some, or a lot even. Just remember the storage space it takes! Use your head and don’t ‘go with the flow,’ as do dead fishes. don@coloradogold.com