They can only do that as long as the value of gold is more today than it was yesterday. In other words the value of gold must be rising.
Which is exactly what it is doing. So what happens to the value of the dollar if gold goes from $1400 per ounce to $2800 per ounce next year.
What happens to the value of your retirement account or your house if that happens? Or a gallon of milk?
If your house and your retirement account respond that way what will happen to the interest rate the vast majority of people pay on their credit cards every month?
Hypothetically, if Gold doubles in price, your house and your retirement account and all your assets lose 20% each year, the price of food and stuff rises 8% every year, and the debt you pay each month goes from $300 to $600, while your salary is unchanged, what will that do to your personal budget? Or the guy's next door?
Don't believe me? Start poking around on the net and tell us what your best guess is on what will happen for each of those variables in the next few years. And none of that assumes that foreign countries will stop loaning us money.
Well said, Dr. Who! I concur with most of what you wrote (as I usually do).
Forget about gold. Silver is what everybody should be watching and investing in. Silver is the "poor man's gold". Silver has many industrial uses. Silver is much more difficult to refine than gold is, so supply is not keeping up with demand. China is buying silver and gold like crazy. Silver just cracked $40 an ounce this morning. Silver is a tangible asset. Paper and ink are not. Clad coins are not. The U.S. dollar will no longer be the world's reserve currency in the near future. How's that for a "shotgun" explanation of silver investing?
As for off-the-grid living, those who aren't prepared are going to be in big trouble. The power grid is extremely fragile, as is our entire infrastructure. It won't take much to tip it over. Fuel prices and food prices are the two things to keep a real close eye on. Inflation is already here in a big way, and it's going to get much worse. Why do you think the government doesn't include food and fuel in their inflation and cost of living statistics? Just an oversight on their part? Yeah, right. Let's face it, they don't want anybody to know how bad things really are, even though those of us who are paying attention already know how bad things are, at the gas pump and at the grocery store.
The stock market is a house of cards that is going to collapse under the weight of it's own Ponzi schemes, illegal securities manipulations, and all the other "artificial wealth" schemes that have polluted it. The U.S. stock market should be temporarily shut down, and the crooks and hucksters arrested and put in prison. The stock market is completely corrupt and there should be thousands of stock market manipulators in prison right now.
Anybody who is invested in the stock market via their 401K or via the many "get rich quick" schemes floating around out there, had better get out while they can. Anybody who is a public employee and is fully vested in a local, state, or federal pension plan is in big trouble. Anybody who trusts that their bank will remain solvent, no matter what happens, is only fooling themselves. Most major banks are already insolvent, and are staying open only because the federal government is propping them up.
I don't much care who believes me and who doesn't. I can only tell you what I know, based on my personal experiences, my extensive research, and what I have been told by other sources.
I used to be a day trader in the stock market. I made my money in the stock market by investing in certain companies shortly after Hurricane Katrina struck the gulf coast. I made a significant amount of money during the satellite radio craze (thanks to Sirius and Howard Stern).
But day trading is a lot of work, and has too many ups and downs, and I am not getting any younger. Most of all, at the end of the day, I felt dirty, even though I did nothing illegal, so I got out.
Enough people do believe me and trust me, and they are not only making five or six figures profit in their silver and gold investments, and having the security of a tangible monetary exchange tool, but many are also preparing for life without all the "luxuries" people in this country enjoy and take for granted, like public utilities, cell phones, HDTV, and yes, the internet.
Do you know that there are many small retailers around the country who no longer accept paper and ink and clad coins as payment? They accept silver and gold only.
Do you also know that there is legislation in the works in a number of states to establish an alternative currency based on a gold and silver standard, in the event that the U.S. dollar crashes?
It's the people who are not preparing for the inevitable that will be the ones who will be knocking on the doors of us who are prepared, looking for food and water and safety and a place to sleep.
I'm not trying to give anybody a hard time, or be a "know-it-all", or pretend to be an "expert" on everything. I'm writing all of this to
help those of you who have some money, and who have a grasp on what is going on, and what is going to happen, in this once-great country of ours.
I have no "insider information" on the U.S. dollar collapsing this year. Nobody does, except maybe Ben Bernanke, but I can tell you with certainty that the manipulation of our currency and the printing of unlimited amounts of U.S. currency and the Federal Reserve shenanigans that are going on are leading this country down a path of insolvency, and ultimately, the devaluation of the U.S. dollar. I believe that it could happen later on this year, and I hope I am wrong. It's just a matter of time, and this country is going to end up like many Central and South American countries, or end up like Greece or Iceland or many others.
All we can do as individuals is focus on our own families, and prepare the best way we can with the resources we have available.
It doesn't matter what political party is in power in Washington, D.C. or in whatever state people live in. Both parties have had a significant hand in where this country is today. There is plenty of blame and finger-pointing to go around, but that doesn't feed and protect our families.
BigRob, hopefully this provides you with the information you wanted. I am not here to get involved in jousting matches with people who I consider to be good and decent people.