Gold is Money...Again!

by Wayne James

For nearly three decades Gold has been viewed as an investment unworthy of legitimate discussion, a relic. These views have not been without merit, until recently Gold had not performed up to those lofty highs of that frenzied and disturbing era of the early 1980's. Times have changed, Gold is back both as an investment and as a hedge against uncertain outcomes of our current economic malaise.

In the early 1970's America officially went off the international Gold standard. In effect, we defaulted on the promises that were made to the non-domestic holders of our debt. With US Gold pegged at $35 per ounce, foreign investors were cashing in dollars for Gold, then selling it on the open market for a profit. That reality could not be sustained for very long, we defaulted and closed the Gold window. Those conditions were the result of poor fiscal policy and unsound actions by our leaders. We could have suffered a little economic pain and gotten through that period of time but those leaders did not want the economy to suffer. Despite those intentions we suffered plenty.

High unemployment rates, high inflation, and soaring Gold! Those were the conditions of the late 70's and early 80's. Sound familiar? It should, as we are now trying to print our way out of an economic nightmare. Our money supply has gone parabolic...straight up on a graph. If you could see current M3 (official money supply), which you can't since the government won't share the M3 figures anymore, you would be very angry. When our government overspends it has to borrow that money. The government is not listed as the debtor...you are. That's right, we the people are legally responsible for the repayment of that debt. That debt is now a staggering and nearly unpayable amount of money, we are simply insolvent.

Every single dollar that ever existed was "loaned" into being, they are not printed or created...they are loaned. So our currency is really debt rather than dollars. So far we have been fairly successful at exporting all of our inflation. That could change very soon, and if it does things will happen in our country that we have never seen before.

If foreign debt holders get spooked and decide to buy things with that money, we would be in big trouble. If world oil markets begin to settle trades in a currency other than dollars, we would be in big trouble. For those who don't believe that our currency could ever fail, every single fiat currency the world has ever known has failed. Ours will be no different, it will fail, it must fail...unfortunately for us it's an absolute mathematical certainty. When it does those who have stored wealth in some other form will be in a unique position...America will be on sale and it will take pennies on the dollar to change your life and the lives of people you know and love. Be prepared.

We have been tricked by private banks to believe that sound historic money, Gold and Silver, are worthless junk, yet credit and debt is true wealth. It sounds unreal and actually difficult to write, but that's what our leaders have done and what we have allowed.

The reason to own Gold is simple, it's money. It has always been money and long after fiat currencies fail it will still be money. That shiny yellow metal doesn't seem like such a relic anymore!

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Gold is Money...Again!