We celebrated Memorial Day last week, and I hope you flew your flag. WW I, was to be, “The war to end all wars,” which of course it didn’t. “Memorial Day,” was originally called “Decoration Day,” to observe all the veterans who were decorated for their valor. Then it became “Armistice Day,” which was the 11th hour of the 11th day, of the 11th month, which is when the armistice ending the war was signed.
WW I began, because Germany became bellicose, and threatened the security of Britain, France, and Russia. It really didn’t begin with the Arch Duke shooting, as is commonly thought, although this murder might have been a trigger. It had been brewing for a couple of years. Germany was broke, since she lost the war, and a hastily constructed “Treaty of Versailles,” by the winners, against the loser, Germany, who didn’t sign it. Is a ‘treaty,’ not signed by both parties, valid? WW I, was the only war in history, when the loser was forced to pay for the damages it had done. Germany was forced to pay hundreds of billions, which she did not have. She paid with printing press money, the ‘Reichsmark,’ which at the beginning of the war, was the equal of a U.S. silver quarter. After the Treaty of Versailles was signed by everyone but Germany, the presses rolled, and finally a reichsmark was worthless. That is known as ‘inflation,” which is accurately described in all dictionaries as, “An increase in the money supply,” although the current head of the Federal Reserve, (which is not federal, and has no reserves), either doesn’t believe it, or realized he is incapable of reducing it.
The Treaty of Versailles, caused the rise of Adolph Hitler, who like all politicians, promise the sky, but are incapable, of doing virtually anything, other than spouting millions of pointless, useless verbiage. Germany was broke, its economy was a shambles, no one could work, knew the value of anything, and that treaty controlled every jot and tittle of German life. Hitler promised jobs, industry, total recovery, and a new, prosperous Germany. Hitler’s socialism worked, till as Maggie Thatcher said, “you run out of other people’s money.” After a few years, socialistic, anti-Sematic, greedy, Nazis began WW II, which is the last war America has won. One, absurd, impossible to obey, unsigned contract, sealed Germany’s horrible defeat in 1945.
As if were an example for us to follow, the U.S. dollar has lost probably 98% of its purchasing power, compared to its value before WW I, when a Ford Model “T” could be bought for $275, and a new, brick, three- bedroom row house, could be purchased for $2,500. All of America’s wars, won or lost, were paid for with paper money, which declined in purchasing power with each war. WW I, had nothing to do with America, but President Woodrow Wilson insisted that we get into it, even though it was about over. That war ended in 1918, and America got into it in 1917. While it may have shortened it, the cost in lives, materials, arms, vehicles, ships, and guns, was catastrophic. America was separated from that war by two huge oceans. Forking over hundreds of millions of then silver-backed dollars, made America, then, and like all the other wars we have entered, economically much poorer.
There still a very few WW II vets around, and in one news show on Fox, a 99 year old WW II vet, remembered that he entered the war at age 16. Most of the Korean vets have passed, and it seems a majority of Vietnam vets have also. Remember, the Vietnam war ended over 50 years ago. Neither Korea, Vietnam, Iraq, or Afghanistan, should have seen an American soldier.
Silver
The former three-month delay for delivery, has eased down to a couple of weeks, as of today, Friday, when I am writing this. The gold-silver ratio, has gone down from 88 to 1, down to 80 to 1, and silver is still an outstanding buy. In 1980, it was briefly 16 to 1. This occurred when Bunker Hunt was foolishly trying to corner the world’s silver supply. He was doing it by buying physical, as well as buying futures contracts. I met him and helped to count his silver purchases. He was a big, burly overweight character, who was very friendly. I wonder if he still lives.
Pricewise, one ounce of gold, is equal to 80 ounces of silver. One Gold Eagle, has the same price as 80 one-ounce silver coins! Ten Gold Eagles would be the same price as 800 ounces of silver, weighing over 50 pounds! Everyone should have a couple hundred one-ounce coins for future bartering, if it ever is needed, and I hope it won’t, but bartering with gold would be difficult, other than for a very expensive item. Gold is the insurance policy against inflation, and silver is the barter vehicle. We’ve got both silver and gold, all from reputable mints, one of which we own, and delivered to you for 1% over what they cost us. How can any business operate with a one percent profit? Easy! No rents to pay, no showrooms, offices, or employees, and no advertising. No boss, commuting, dressing up or travel time. Fly your flag on Flag Day, which is Wednesday, June 14th!
Don Stott- don@coloradogold.com