Do you know who it is?
I bet you don’t.
This thief works 24 hours a day, 365 days a year, without a drop of sweat, no emotions involved, and no signs of stopping any time soon.
And perhaps the most disgusting part about it is:
The problem is – the thief isn’t even human.
And the only people who have any influence over it lost control a long time ago.
So there’s no stopping it.
The thief is…
Since 1971, when president Nixon decided to abandon gold, the printing press has run wild and free, printing money at will.
Which helps explain the 3,381% increase in the U.S. National Debt, from 414 Billion to 14 Trillion.
And whatever the money is used for (or claimed to be for) – Bailouts, Wars, Special Interests, Entitlement Programs, etc…
It will not stop… because it’s already too late to turn things around.
Gold has intrinsic value.
Gold has real-world uses, such as being used in nearly every sophisticated electronic device, including cell phones, computers, and global positioning devices. Additionally, gold is used extensively in aerospace technology, specifically by NASA.
Gold cannot be manufactured.
Gold is a safeguard against irresponsible governments.
With unemployment exploding, foreclosures at an all-time high, and Billion dollar companies failing, it’s reasonable for the average citizen to assume that things “can’t get any worse”.
That is dangerous thinking. Especially with a double-dip recession on the horizon.
But let’s say things do magically get better… what would that mean?
Would it be permanent? Not a chance.
Even so, what would happen to gold if things magically “got better”?
While gold has had ups and downs, and stagnation at times, the fact remains that since the U.S. government abandoned the gold standard in 1971, gold has consistently outperformed the stock market, real estate, and currencies.
A MUCH more likely outcome… things will get worse over the next few years.
And that is GOOD for anyone who owns gold. Because when consumer confidence is low, and interest rates are low, demand for gold goes up. Gold benefits from economic and psychological factors.
Meanwhile, the cost of simple items like a loaf of bread, will continue to rise to unprecedented prices, while average citizens continue to make the same amount of money they’ve been making.
There is a reason that the founding fathers of America specifically mentioned gold and silver in the Constitution.
A major factor that resulted in the American Revolution, and the subsequent independence from England, was that the American Colonists did not want any part of England’s central banking system.
A central bank is an institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. In contrast to a commercial bank, a central bank possesses a monopoly on printing the national currency.
Central banking has never worked because when you give a private bank, with private owners, free reign to control a country’s currency, unfortunately there are no checks and balances to stop those individuals from printing money irresponsibly, or to advance their own interests.
It’s important to note, England’s requirement that Americans accept the Central Bank of England, was one of the very reasons that Americans fought for independence in the 1770′s.
And from that point until 1913, a few central banking systems came and went, depending on who was in office. President Andrew Jackson was very outspoken against central banking, and in 1835 he helped the U.S. not only become debt free, but there was actually a $440,000 surplus.
So what happened in the early 1900′s when Congress tried to introduce the idea of central banking yet again?
The public didn’t want any part of it.
So it was simply called a different name, “the Federal Reserve”, and the most powerful bankers in the world (JP Morgan and others) also guaranteed its approval by using their influence to create mass hysteria. They (falsely) announced that many major banks would soon be bankrupt, and encouraged Americans to withdraw their money.
This “bank run” became a self-fulfilling prophecy, and the mass withdrawals DID in fact wipe out a lot of smaller banks.
After the big bankers had proven their point, even through manipulation, Congress had no trouble getting approval for the Federal Reserve – which they said would prevent any future hysteria or bank runs.
The federal reserve is a privately owned bank, outside U.S. jurisdiction, that can do whatever it wants. It prints money, and loans it to the U.S. government, with interest.
Then in 1971, the U.S. government decided to give the federal reserve the ability to print money without needing to have an equal amount of gold in the vaults to back it up. Up until that point, all U.S. dollars printed were required to be backed by an equal amount of gold.
So, every dollar printed since 1971 has been backed by thin air. And the national debt began its 3,381% rise to $14 trillion dollars.
China and India are buying gold like crazy. They consumed 52% of the world’s gold in 2010. And in 2011, increases in demand from China and India have driven a 7.5 percent increase in demand for gold jewelry during the first half of the year, despite a 25 percent increase in the price.
Additionally, a recent cable was leaked by the infamous WikiLeaks website, which revealed the REAL reason behind China’s increasing demand… it showed that China’s intent is to make major gold purchases for the sole purpose of weakening the U.S. dollar.
Billionaires are investing in Gold.
- Thomas Kaplan: This 47 year old billionaire has over $2 billion dollars invested in gold.
“People view gold as emotional, but when they demytholoize it, when they look at it for what it is and the opportunity it represents, they’re going to say, ‘We really should own some of that.’ The question will then change to ‘Where do we get the gold?” - Thomas Kaplan
- John Paulson: Worth $12 billion dollars. Has over $4.6 billion invested in gold.
Gold can easily pass $2,400 per ounce, reaching up to $4,000 an ounce within 2012. - John Paulson
- David Einhorn: 42 yr old investor with a net worth of $560 million. Recently became part owner of the New York Mets.
“Gold is the money of choice and we would like to have a meaningful amount of our assets denominated in gold. It’s the biggest position in the fund”… “It’s the one kind of money Bernanke can’t print more of.”- David Einhorn
- Seth Klarman: Manages a $22 billion dollar hedge fund that recently put over $1 billion into gold.
There are no easy ways to navigate these turbulent waters. But because the greatest risks are of currency debasement and runaway inflation, protection against a currency collapse – such as exposure to gold – and against much higher interest rates seem like necessary hedges to maintain. - Seth Klarman
- Jim Rogers: 69 year old investor with a net worth of $300 million.
Gold will be the great investment over the next decade.- Jim Rogers, March 2011
You CAN rely on Gold.