December 15, 2019 
 Sunday 
 
 

Forum
Topic:
Gold Enters Major Bull Market

       

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 By Dave I.

02/18/2009  12:44AM

The bail out you have stated is pretty much the one that is being adopted for the existing distressed mortgage loans that the 50 billion will be used for.
It is also being reconsidered for the next bank bail out stimulus. This also includes a policy that the bankruptcy court are planning to use for a solution to over indebtedness by official ordering bank and the bankrupt debt holder to renegotiate the mortgage as you recommend.
Congress would like your input.
 By bluejay

02/17/2009  11:26PM

Last on gold tonight is $970.90 after hitting a high of $975.60 earlier.

Gold, with the exception of the US dollar, continues making highs in world currencies. The meltdown continues to pick up intensity all over the world as current bailouts are proving inadequate.

The most intelligent bailout of all seems to have never recieved any attention from officials. That bailout out would be to immediately reduce interest payments on everything for everyone and extend term periods. This would immediately put additional money into the private sector and create demand thus lessening the current rate of layoffs and bailouts.

Dumb ass statement of the day:

Alan Greenspan - "We're not doing enough to help(some) US banks."

I remember Greenspan saying during the battle with CFTC Commissioner Brooksley Born in Congress over regulating OTC derivatives, "the banks should be permitted to regulate themselves since they have done such a good job of it so far." Greenspan needs to be put on the next space shuttle, he's a buffoon of the highest order.

We need to get real as Martin Armstrong has said, what's killing the American people is their debt obligations and the interest strangle-hold that the bankers have over them. Usury interest payment limits need to be capped at 10%. In some states they are as high as 27%, that's what's killing our economy. The system is all screwed up. Take for example the retired seniors who are practically getting nothing as interest on their T-bills who used to support their living expenses with that income.

If government had any guts they would close down all the banks that got us into this trouble in the first place and redistribute their customer accounts to the "good banks."

Then the shareholders of the bad banks could proceed with class action suits against all the board of governors in those closed banks and personally recover what they can from those clowns.

As far as the toxic assets are concerned, the American people are already consumed part of them. Some part of the toxic assets should be pledged against the bankers homes after all their other assets have been divided among the shareholders that they screwed. Also, the government should extend long term deductions, to some degree, to all shareholders of the closed banks so that they can recover some portion of their orginal investments as the government's colossal failure was to trust the banks.

Thanks Alan Greenspan, you POS.
 By bluejay

02/16/2009  9:02PM

Gold's last is $953.90, up $12.30.

The following was just reported at the jsmineset.com website:

It’s getting bleaker by the minute in Eastern Europe. In case you didn’t catch the latest from the Telegraph’s Ambrose Evans-Pritchard, he warned at the weekend how a growing crisis in Eastern Europe could cause nothing less than a total collapse in the West, or as he put it: “If one spark jumps across the euro zone line, we will have global systemic crisis within days.”

Sinclair basically says that we have the big Wall Street investment banks and the big commericial banks to thank for this mess that they have delivered to the world via their out-of-control leverage and greed.

I looked at the monthly long term chart on gold tonight and it looks to me that we are in position to put a rhino horn in on the chart which means almost straight up to the $1288 to $1300 area.

The battle between the bears(the big commercial international bankers) and the bulls was fought between $900 and $700 and the bears are currently running for the hills with their tail between their legs.
 By bluejay

02/15/2009  6:49PM

Last on gold is $937.50, off $4.40.

Another great article on money, debt and interest:

http://www.kitco.com/ind/schoon/feb132009.html
 By bluejay

02/09/2009  1:41PM

Gold $896.10 off $15.30

The following link is another masterpiece done by the Comex crime fighter, Mr. Ted Butler.

http://news.silverseek.com/TedButler/1234207643.php
 By bluejay

02/01/2009  11:46AM

Jake Towne from GATA has prepared an informative article recently submittred to their website. From Rubin, Summers, Geithner and Gensler to the gold price suppression game to a great cartoon of Rothchilds' stranglehold on all the inhabitants of the planet.

Check it out.

http://news.silverseek.com/SilverSeek/1233336321.php
 By bluejay

01/31/2009  1:10PM

Gold $927.10 up $18.80
Silver $12.67 up $ 0.32
Gold/XAU Index 7.48
Gold/Silver Index 73.17
Crude Oil 41.75 up $ 0.31
US Dollar 85.84 up 0.01

Gold's fourth up wave including its big push from below $650 in late July of 2007 has traded higher out of a massive nine month old declining flag formation. This prepares the metal to probe out the bear's defensive line at the $1000 level again. Once the psychological area of $1000 is taken out for good the proponents of the fiat currency system will get a sobering warning, gold will adjust to its rightful price based on inflation, alone, at the $2500 level.

I expect gold to push higher in steps and consolidation phases for some weeks or possibly, months under the 1000 mark while it tunes up enough energy for the final push above.

All this is well enough said but marking the time until gold does escape the reigns of the magical number the big bankers will be fighting it tooth and nail every day with, maybe, another planned bear raid in the makes. It is common knowledge that the bankers smothered the price on two attempts already in the August to September period of 2008 from about $970 to $740 and again, from $930 to $700 in October. All this was done with the blessings of the Treasury and the CFTC.

Our banking system, basically, is bankrupt. The problem is capital. Over the years, as has been pointed out a few times before, the trend of lower interest rates has eaten away banking reserves to a great extent. Adding to this problem the OTC derivative failures and there is no wonder the banking industry is insolvent. If it weren't for massive cash injections the big irresponsible ones would have declared bankruptcy some time ago for lack of capital.

So in the meantime, if the bankers can make money by forcing gold and silver lower while adding capital to the system then what is there to complain about from the Treasury? The bankers are serving the Treasury in two respects: manufacturing their own capital and putting the shine on the Treasury's and Fed's fiat money. Even the CFTC got the word to lay off the banks for manipulation as they just let them exceed limit positions. The question is, don't you think it is questionable when two or three financial institutions are short 25% of the world's gold productions like they were back in the July to August period of 2008?

The gold/silver ratio continues contracting at 73.17 while the ratio in its 10th day below a declining 50 day moving average line. In October of last year you could have traded an ounce of gold for 88 ounces of silver, now you just get 73 ounces. I have looked at the candlestick chart at stockscharts.com($GOLD:$SILVER)and it is clearly showing, in my interpretation, continued shorting of silver. In the long term this is positive but during the interim it could keep silver restrained some from doing what it wants to do.

Silver is being described as an industrial metal by the silver bears which it is during normal times. This is not true today with the world getting closer to a systemic meltdown. Today, silver is a monetary metal to many. As anyone in Mexico knows, it is their metal of choice for insurance during these trying times as well as for people in countries around the world.

Into the future the US dollar will not exist anymore. Considering all the debt against the dollar, what do you think happens to silver and gold when a new currency gets introduced? Silver and gold retain their value while the old dollar may have its value cut in half going into a new currency. If you hold dollars in banks or in hoards of cash you could lose 50% of your wealth over night on just one official announcement.

One closing thought and this is a big one: You need to brace yourselves for a possible collapse in stock market prices, including the precious metal shares. The XAU Index has major long term support just below 100 at the 98 level. The current last on the Index is 124.01.

The Plunge Protection Team has been furiously attempting to hold up the stock market over the last four months at the 8000 level of the Dow Jones Industrial Averages(DOW) and time maybe approaching when the level yields to a waterfall drop. Just below the 8000 area is the last remaining long term support for the DOW bull market at 7900. The 7900 level is where the 5000 day moving average resides. Remember, some years back when attention was drawn to the fact that gold broke the 5000 day average to the upside at around $350 an ounce? If this area gives way, WATCH OUT BELOW! My interpretation of a potential quick drop, over a few weeks or so, is into the 6200 area.

I suspect that the Philadelphia Gold and Silver Index(XAU) could drop about 25% in the process. If you are interested in buying into the suspected drop of gold and silver shares I continue to feel that Agnico-Eagle, GoldCorp and Royal Gold are the better senior gold to stay focused on.

When much higher gold prices finally arrive, you'll know that you did the right thing if you purchased gold stocks on weakness. Jim Sinclair recently stated that with higher gold prices the gold stocks will be like some of the utility stocks of past years, stable dividend payers. If this will be the case, can you imagine what some of the best gold shares will go to in future prices?? I have said many times to friends and relatives that Royal Gold(RGLD-OTC) will in the future be in the 100's of dollars or in some other other currency maybe, a little less.

We live in a world where the current depression continues to bring us miserable news on a daily basis. Although there is great hope for holders of gold and silver and their shares, always be prepared to stand firm if prices suddenly fall for it will only be temporary.
 By Hans Kummerow

01/31/2009  10:00AM

During his first ten days in office President Obama has made several wise decisions. That gives me some confidence, that the problems of the US-Banking Sector will be adressed wisely too.
I have read his book "Audacity of Hope". Obama wants to lead. And since the financial crisis started in the US, Obama would probably like to lead the financial world out of this crisis by decisive action in the US.
Maybe next week we will hear more on the subject.
 By bluejay

01/27/2009  7:59AM

To Michael:

Why would a Miwok lie to me? The white man's history is full of lies. For me, I prefer to trust the unwriten history of our native people.
 By bluejay

01/27/2009  6:11AM

Gold's last is $897.60 and coming under renewed attack by the cabal at the $900 area.

No surprise in Reno yesterday as the our slime court system sides with the devil and against the Western Shoshone.

http://www.mineweb.co.za/mineweb/view/mineweb/en/page68?oid=77415&sn=Detail
 By Michael Miller

01/26/2009  3:04PM

There may be one historical correction with Bluejay’s essay below, and it is an important one. It is the reference to “California offered $5 bounty for any and all Indian scalps.” For the past three years I have been unable to verify this account. Background follows:

The Spaniard missionaries led the first serious cultural impact on native tribes in Califrornia with Father Junipero Serra as leader. Numerous accounts detail this phase of California’s evolvement from a primitive land to the most populated state in the US. Indians joined the work force as slaves and paid workers of the missions. As the missions’ power waned the Spanish/Mexican vaqueros, gauchos and senoritas and senoras gained large ranches and a way of life that evolved into a cultural with Indians and Californians. The Indians were evolving as well. In language of contemporary chatter, the Californian style was a pretty “laid back” life.

Richard Henry Dana, a young drop out from Harvard law school spent Two Years Before the Mast, an epic story about life in California as a sailor of a hide ship off the coast of California in 1830’s. Russians entered northern California looking for food and furs but relinquished their colony, sold its hardware to John Sutter and returned to Russia (1840’s). Canadian (French and English) trappers packed into northern California for trade as well. Indians had bad and good times with these emigrants. The heaviest actions took place between 1846 and 1850, mostly \in Monterey San Francisco and Sacramento. The US picked a fight with Mexico, wining the war just before that famous day, January 24, 1848, when John Marshall rode to Sutter’s fort in Sacramento with a poke of gold. The rush was on and it was a worldwide rush. Some Indians fared poorly and some succeeded. No accounts I have found document the $5 bounty story.

Maybe it did happen; but if it did, the offer could not have been an offer by California. I am confident that some people were pissed off with the Indians. I am sure that some Indians were just as peeved about the settlers in California. An interesting story about Indian fighting tenacity or skills took place way north in Modoc County. Captain Jack (Indian) held off the US Cavalry in a vicious battle. While the fight took place in California it was not by Californians. A puzzling cultural story is how quickly the Californians accepted the federal military take over of their homeland.

Last summer I bought a new book about California’s evolution in the 1800’s by H.D. Brandis, a professor at the University of Texas. I called him in Austin to challenge a couple of his historical presentations. I also asked him specifically about the $5 bounty (his book is really a good one). He said he had heard the story but in his extensive research never could find the source and verify.

My interest in the California gold rush pushed me to read about Francis Drake, Fremont, Vallejo, Sloat, Sutter, Castro, Larkin, Bancroft, Montgomery, Downie, and the unfortunate Juanita, who lost her life dangling at the noose end of a rope on a bridge over the Yuba River. Then there are the diaries of regular people. The survivors were a strong lot. They fought, they lived, they loved and they died. They accepted unimaginable challenges as the State of California evolved. They stood tall when necessary and bended as well. As a native Californian I embrace our culture. I cannot change a thing about its past. I may have an affect on its future. I believe many Californians continue to lose the simple lessons that are found in our social and cultural past.
 By Rick

01/25/2009  9:24PM

Native holiness would get a better shot at surviving in California.

What we'll watch is the Federal angle.

When state's rights wins this one in Nevada and the mine is allowed to procede, what will be the impact upon California's mines? Will there be as much hub-bub in the national news over Nevada's "economically depressed masses" as there is in California?

When there is no obstacle to the procedure of developement in Nevada, won through litigation by the criers of "economic depression issues" where will the same voices be when the Original Sixteen to One wants to go mining????

We'll watch this one closely. It is a really tough one for me. I mean it.

Putting it into perspective, why is it in Nevada that Native American heritage can't trump mining development when in California if there's a gnat in danger of sleeping too long the Feds shut everything down and want to do evrything possible to protect the Earth?

What a farce.

I wish the Nevada tribes hope.
 By bluejay

01/25/2009  5:38PM

It never seems to amaze me how Barrick Gold continues to attack the lands of indigenous people around the world and get away with it. Their confrontations with ancient native communities and their water resources has been going on for some time, especially in South America. In Tanzania, Barrick has been accused of atrocities.

If there ever were a politically connected gold company, it's Barrick. Just before George Bush left office the Bureau of Land Management handed over to Barrick some more very prospective gold claims in Nevada. Bush's father has a long history of involvement with Barrick Gold.

When the white man came west and conquered native North Americans it was an another atrocity. When gold was discovered in South Dakota it just became worse. There may have been treaties signed but the native Indians thought they were just sharing rights to hunt and fish on their lands. Otherwise, they were tricked in giving away their part of the greater Indian Nation of central North America.

The Indians, above all else, were respectful of mother nature and the earth. When the continental railroad was moving west, the Indians watched in disgust as passengers killed free ranging bison from their open windows with sticks of fire just for sport as the passenger cars passed through.

Indian communities were displaced by the great white father and when it wasn't expedient enough for the conquering white warriors, California offered a $5 bounty for any and all Indians scalps. The espisode, aside from slavery in this country, was one of the most repugnant time periods in our history.

Even today, the way our government treat descendents of the once proud people who just wanted to live and let live still remains disgraceful. Even Canada treats its indigenous people with much greater respect.

So now Barrick's attorney is discussing economic hardship for the Company concerning the current investment along with negative implications concerning workers and local communities if the court agrees with the Western Shoshone's claims that they are treading on sacred ground.

It would absolutely amaze me if a restraining order was issued in the Western Shoshone's favor against Barrick's intentions of desecrating their sacred land for a hole in the ground but I guess it will be business as usual for Barrick in getting their way, again.

I feel sorry for our native American Indians and I support them. Since the beginning of time Mount Tenabo belonged to the Western Shoshone. Barrick's big machines have recently begun ripping out their Pinion forest on the mountain where the local Indians have been harvesting Pinion nuts for centuries.

A judge's ruling is expected in Reno in the early part of next week.

----------------------------------------







Jan. 25, 2009
Copyright © Las Vegas Review-Journal

Gold mine ruling may come Monday

THE ASSOCIATED PRESS
RENO -- A federal judge intends to rule Monday on a complicated legal battle that pits religious and environmental concerns against the economic interests of hundreds of Nevada miners and the world's biggest gold mining company.

Conservationists and Western Shoshone tribal members are seeking a preliminary injunction to halt part of a huge gold mine project they claim would desecrate a sacred landmark where many have worshipped for centuries on Mount Tenabo in northeast Nevada.

"This case is about one very big, very destructive mine and about one special, unique and very important place, so important that people come hundreds of miles to pray there to their creator," said Roger Flynn, a lawyer for the tribe and the Great Basin Resource Watch.

"You can't pray in a blast zone," he said Friday at the close of the fourth day of a hearing.

Lawyers for the Toronto-based Barrick Gold Corp. and the U.S. Bureau of Land Management counter that the 6,700-acre Cortez Hills project 250 miles east of Reno in Crescent Valley has been properly approved under the Mining Law of 1872.

They say any delay in digging the 2,000-foot deep open pit would cause an undue financial hardship on the company and its workers during tough economic times.

"Barrick is prepared to spend $640,000 a day for the next 15 months and a lot of that money will remain right here in the state," said Francis Wikstrom, a lawyer for Barrick.

Thirty workers already have been laid off and another 250 to 300 will be out of work and unlikely to find other jobs if the project is halted, he said.

"This is basically the only game in town in Northern Nevada," Wikstrom said about a state that produces more gold than any other, trailing only South Africa, Australia and China internationally. "People need to feed their families."

U.S. District Judge Larry Hicks said he will announce his ruling at 3 p.m. Monday.

"All of us know it is a very difficult issue for many people," Hicks said Friday.
 By Hans Kummerow

01/24/2009  6:15AM

There is talk about a new concept to relieve the German Banking System of bad debt.

The plans call for a "Bad Bank" that is founded to match every major bank with troubled assets.

The State of Germany is supposed to guarantee for the "Bad Banks" and will in return receive a yet unspecified portion ot the banks earnings during the next 50 years or so.

Troubled assets are believed to range from 300 to 1000 billion Euros.
 By Rockroby

01/23/2009  7:43PM

Thank you Bluejay
 By bluejay

01/23/2009  12:25PM

Last on gold is $895.70.

Today is a great up day in gold that begs respect. I say this for a good reason: the powers to be who run our fiat paper system are most probably either using paper instruments to hold today's strength in check or are devising another plan for a renewed attack on the metal.

You see, we have two very strong forces at work in today'a gold market: one is a force that doesn't want their fiat money system questioned ever by a rising gold price and the other one would be folks that want to protect their wealth from the destruction by a fiat money system.

The trials of a strong upward bias in gold since Gordon Brown made the collossal "mistake of his life" in selling most of England's gold at the bottom under $300, has turned into a real tug of war.

I want to take this time, again, to mention that it has been said that Gordon was accommodating Goldman Sachs' chief, Henry Paulson, so his firm could cover their gold shorts for a substantial profit. Who knows what went on between Paulson and Goldman when he was Treasurer? One just has to search YouTube under Max Keiser to find out his opinion concerning Paulson, it couldn't be worse for what he has done to the American people according to Max who works out of Paris.

The gold market and their shares as a result of this ongoing war have become extreme and difficult to pinpoint with analysis in projecting important highs and lows.

Even my extrapolations within this forum hasn't been perfect. I remember back on October 17th that I called a bottom on the gold shares when the Philadelphia Gold and Silver Index(XAU) was about at 90. Ten days later the bottom was put in at 63.52.

The extreme created by the cartel carried the Index lower(along with gold down to $700) about another 30 points. This was a vicious attempt to scare the public out of their shares, for once and all. The decline from about 220 on the Index was the biggest engineered panic drop since the Index was first created. The cartel means business and those who go against them without a stomach to endure their criminal temporary manipulation may fall victim as a sad consequence.

I remember the days following my prediction I felt terrible as the stocks I recommended fell like someone had pushed them off a cliff.

The three were Agnico-Eagle at 35.92, GoldCorp at 20.04 and Royal Gold at 30.44. They were all seriously effected with the continuing lower prices for the following 10 days. Fortunately, with the XAU turning around from its historical low things has wonderfully improved with the last sales on the three as follows: Agnico Eagle at 56.13, GoldCorp at 28.87 and Royal Gold at 47.54.

The key to successfully protecting your wealth is to buy right when events are orchestrated to freighten you and hold tight.

So with gold shinning brightly today, expect the capal to rattle your nerves with some concocted maneuvers, possibly, in the near future, again. The key will ALWAYS be, don't fall for their tricks.
 By bluejay

01/23/2009  10:49AM

Gold $895.10 up 38.70
Silver $11.93 up 0.54
Gold/XAU Ratio 7.09
Gold/Silver Ratio 75.03

Gold today is knocking at the $900 door. Gold in all currencies of the world is in a bull market and rising.

Some charts depicting part of this major event are available for review at jsmineset.com under the topic heading, "Trader Dan Comments On Gold's Action In Other Major Currencies."
 By bluejay

01/22/2009  1:23PM

Last on gold is $855.30.

Bad omens coming from DC towards China.

The Treasury Department is attacking China. Does this make sense concerning they are our largest creditor?

Hank Paulson prior to leaving his Treasury post told China that because of their high savings rate that they are responsible for the world's financial turmoil. Recently, the designee Secretary of the Treasury, Tim Geithner, said that China is manipulating their currency. Nothing like calling the kettle black, Tim.

These attacks are probably out of disdane for China telling the US that they should be doing better job in cleaning up their financial house. Being more specific, China might be wondering why the banks are hanging on to all the TARP money in buying Treasurys instead of injecting it back into the economy.

So our arrogant posture is just to slap China in the face? The Treasury does temporarily have China over a barrel just alone with their massive holdings of US debt. Meaning, they can't get out fast without devaluing what remains unsold. So China for the moment, may still have to play the waiting game as they trickle out of the dollar and in the process have to listen to insults from their big US debtor.

I'm getting the gut feeling that Geithner, if he becomes the head of the Treasury, will be just like another "Paulson." If this proves to be true, Heaven Help Us All.
 By bluejay

01/22/2009  10:22AM

Last on gold is $856.50.

Below is provided a link to another educational article concerning you and your money by Darryl Schoon.

http://www.kitco.com/ind/schoon/jan222009.html
 By bluejay

01/21/2009  2:39PM

Last on gold is $853.20.

The following article is a must read:

Robert Kiyosaki Why the Rich Get Richer

How the Financial Crisis Was Built Into the System
by Robert Kiyosaki

Posted on Monday, November 24, 2008, 12:00AM

How did we get into the current financial mess? Great question.

Turmoil in the Making

In 1910, seven men held a secret meeting on Jekyll Island off the coast of Georgia. It's estimated that those seven men represented one-sixth of the world's wealth. Six were Americans representing J.P. Morgan, John D. Rockefeller, and the U.S. government. One was a European representing the Rothschilds and Warburgs.

In 1913, the U.S. Federal Reserve Bank was created as a direct result of that secret meeting. Interestingly, the U.S. Federal Reserve Bank isn't federal, there are no reserves, and it's not a bank. Those seven men, some American and some European, created this new entity, commonly referred to as the Fed, to take control of the banking system and the money supply of the United States.

In 1944, a meeting in Bretton Woods, N.H., led to the creation of the International Monetary Fund and the World Bank. While the stated purposes for the two new organizations initially sounded admirable, the IMF and the World Bank were created to do to the world what the Federal Reserve Bank does to the United States.

In 1971, President Richard Nixon signed an executive order declaring that the United States no longer had to redeem its paper dollars for gold. With that, the first phase of the takeover of the world banking system and money supply was complete.

In 2008, the world is in economic turmoil. The rich are getting richer, but most people are becoming poorer. Much of this turmoil is directly related to those meetings that took place decades ago. In other words, much of this turmoil is by design.

Power and Domination

Some people say these events are part of a grand conspiracy, and that might well be. Some people say they represent the struggle between capitalists, communists and socialists, and that might be, too.

I personally don't participate in the debate over a possible global conspiracy; it's a waste of time. To me, the wider struggle is for power and domination. And while this struggle has done a lot of good — and a lot of bad — I just want to know how to avoid becoming its victim. I see no reason to be a mouse trying to stop a herd of elephants from fighting.

Currently, many people are suffering due to high oil price, the slowdown in the economy, loss of jobs, declines in home values, increased bankruptcies and businesses closings, savings being wiped out, the plummeting stock market, and rising inflation. These realities are all direct results of this financial power struggle, and millions of people are its victims today.

An Extreme Example

I was in South Africa in July of this year. During my television and radio interviews there, I was often asked my opinion on the world economy. Speaking bluntly, I said that South Africans had a better opportunity of comprehending the global turmoil because they're neighbors to Zimbabwe, a country run by Robert Mugabe.

In my interviews, I said, "What Mugabe has done to Zimbabwe, the Federal Reserve Bank and the IMF are doing to the world." Obviously, my statements disturbed many of the journalists. I did my best to comfort them and assure them I was not an anarchist. I explained, as best I could, that Zimbabwe was an extreme example of an out of control power struggle.

After they were assured I was only using Zimbabwe to illustrate my point, I said, "If you want to understand the world economy, take a refugee from Zimbabwe to lunch." I advised them to ask the refugee these questions:

1. How fast did the economy turn?

2. When did you know that you were in financial trouble?

3. When did you finally decide to leave Zimbabwe?

4. If you could do things differently, what would you have done?

Three Approaches to a Crumbling Economy

I spoke to three young couples from Zimbabwe while I was in South Africa. Two couples were recent refugees now living in South Africa, and one couple still lives in Zimbabwe. All three couples had interesting stories to tell.

One couple said that they would have quit their jobs earlier. Instead, they hung on, hoping the economy would change. Then, virtually overnight, the value of the Zimbabwean dollar dropped and inflation went through the roof. Even though they received pay raises, the couple couldn't survive and soon depleted their savings. They left Zimbabwe by car with almost nothing. If they could've done something differently, they told me, they would have started a business in Zimbabwe and began exporting products to South Africa, so that they would have had South African currency and a bank account there before they fled.

The second couple that fled the country said they saved money and paid off their house and other debts even as the Zimbabwean dollar fell in value. Looking back, they say they would've saved nothing and gotten deeply in debt in Zimbabwe, allowing them to pay off their debt with the cheaper dollars. Instead, they fled after they lost their jobs, leaving behind their house and owning $200,000 in nearly worthless Zimbabwean dollars.

The third couple still lives in Zimbabwe. When they saw the writing on the wall, they set up a business in South Africa and, with the profits, began acquiring tangible assets in Zimbabwe. Often, they'll buy an asset in Zimbabwe and pay the seller in South African currency. They believe that once Mugabe is gone and order is restored, they'll be in a strong financial position.

Many Problems, Few Solutions

There are three major problems with the events of 1913, 1944, and 1971. The first is that the Fed, the World Bank, and the IMF are allowed to create money out of nothing. This is the primary cause of global inflation. Global inflation devalues our work and our savings by raising the prices of necessities.

For example, when gas prices soared, many people said that the price of oil was going up. In reality, the main cause of the high price of oil is the decreasing value of the dollar. The Fed, the World Bank, and the IMF, like Zimbabwe, are mass-producing funny money, thereby increasing prices and devaluing our quality of life.

The second problem is that our economic crises are getting bigger. In the 1970s, the Fed faced and solved million-dollar crises. In the 1980s, it was billion-dollar crises. Today, we have trillion-dollar crises. Unfortunately, these bigger crises mean more funny money entering the system.

Apocalypse Soon

The third problem is that in 1913, the Fed only protected the large commercial banks such as Bank of America. After 1944, the Fed, the World Bank, and the IMF began bailing out Third World nations such as Tanzania and Mexico. Then, in 2008, the Fed began bailing out investment banks such as Bear Sterns, and its role in the Fannie Mae and Freddie Mac debacle is well known. By 2020, the biggest of bailout of all will probably occur: Social Security and Medicare, which will cost at least a $100 trillion.

Even if we find more oil and produce more food, prices will continue to rise because the value of the dollar will continue to decline. The dollar has lost over 90 percent of its value since the Fed was created. The U.S. dollar will continue to decline because of those seven men on Jekyll Island in 1910.

Granted, the funny-money system has done a lot of good — it has improved the world and made a lot of people rich. But it's also done a lot of bad. I believe somewhere between today and 2020, the system will break. We're on the eve of financial destruction, and that's why it's in gold I trust. I'd rather be a victor than a victim.

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