Parts of a column I wrote 6/17, 2003)
Picture a hunter who is a poor shot. Picture a wounded deer limping off into the woods to lick its wounds. The hunter goofed, and isn’t going home with venison. The deer is mortally wounded, and is doing its best to survive. It can’t, but continues licking its wound, and is actually drinking its own blood, in a feeble attempt to prolong its life or heal its wound. Its brain tells it to do nothing else. The wounded deer, is a superb example of what’s going on in D.C.
Think of that poor deer in the woods, transferring its blood from its veins to its stomach. When the blood is gone from its arteries, it dies. Blood in a stomach, will not prolong life. Printing gazillions of paper dollars, will not prolong their life or value. The deer keeps trying, which is its natural instinct. The politicians, Federal Reserve, and presidents who got us here, keep trying, which is their natural instinct. An ‘instinct’ telling a student that two plus two is five, doesn’t make it true. The Fed and the rest of the D.C. gang, should know better, but it is their natural instinct to print, just like the deer’s natural instinct, is to do what will eventually kill it.
A classic example of printing a currency to its death, and there are many throughout history, is Germany in 1924. It lost the war, but in the “Treaty of Versailles,” Germany was forced to pay for the damages it caused, $30 billion in 1918 dollars, probably a trillion or more today, which order had never before or since, been forced on a defeated nation. Germany lost, and was broke. They started the presses, and paid with un-backed paper reichsmarks. A former head of the U.S. Fed said, ”We have the power of the printing press.” The German economy was doomed, and that treaty was responsible for the rise of Hitler. The German reichsmark, went from a U.S. quarter, to requiring a wheelbarrow full to buy a loaf of bread. People were insulating their walls and starting fires with reichsmarks, not counting taking them to the outhouses for other uses.
The price of gold in 2003, when I wrote some of this column, was $348.70.
When economic disasters occur, there have always been warnings by the minority, and loud assurances by the majority, that ‘it can’t happen here,’ or, ‘this bank is too big to fail.’ The recent bank collapses, had warnings, which were caused by the Fed’s moronic head, Jerome Powell. Bank managers saw the warnings, and were virtually impossible to stop hundreds of billions of withdrawals. Is it over? Fox Business News on May 3rd, said there were still warnings of the possibility.
The entire World’s currencies are just fluff. Un-backed fluff. The deer drinking its own blood, nations with their printing presses, check books, and computers, issuing worthless scrip, and desperately trying to make it all hold together just a little longer, is as pathetic as the deer trying to live a little longer. Logic, has to tell you that a piece of paper, gloriously imprinted with artistic faces, serial numbers, and even waterproof paper, which is labeled a “Federal Reserve Note,” does not connote value or longevity. The bills say they are “legal tender,” and we all know that. They say, “In God We Trust,” and a few other utterances and designs, but they don’t indicate any future value, even an hour in the future. (Is God offended by this appellation?) Nowhere, in any currency in the world, are there any promises of future value, stability, longevity, or buying power.
Do you believe in Santa Claus, the Easter Bunny, or Tooth Fairy? The Tooth Fairy must be real, because we always found a quarter under our pillow, or maybe today, it would be a $5 bill. The Easter Bunny brought us fancy colored eggs and candy, and Santa left presents under the Christmas tree, but we grew up, stopped playing hop scotch, dodge ball or hide and seek. Why is it that the world’s citizenry, still places faith in trillions of pieces of paper with silly titles, such as “pesos,” dollars,” francs,” or “EU’s?”
For 5,000 years, gold and silver have been real money, true value, true security, and a non-governmental place to store surplus assets. These metals, have always purchased the same things per ounce, come depression, collapse, inflation or prosperity. Why do people believe in fictions, such as various currencies, but deny Santa Claus, the Easter Bunny, or the Tooth Fairy, which are wonderful cherished memories of childhood, but are long gone? Wake up and cease attributing safety to un-backed pieces of paper. Protect yourself!
Don Stott- don@coloradogold.com, or 970-249-4646