Ben Bernanke and the Fed decided to continue to purchase US Treasuries at the rate of $85,000,000,000 per month, month after month. How do they do it? By cranking up the printing presses, flooding the country with little pieces of paper that become more and more worthless. How much is $85,000,000,000.00. My modest home recently appraised for $200K. I could buy 425,000 of my homes for $85 billion, and that’s EVERY month, month after month. Now, printing the money wouldn’t be so bad if there was something to back up the value of this worthless fiat paper such as gold, which is still the standard upon which the value of the American dollar is based. In order to keep from devaluing our currency the Feds would have to match dollar for dollar the printing volume with hard gold being placed in the vaults at Fort Knox. How much gold is $85 Billion. At today’s spot price of gold of $1365.00 per ounce that would be 6.20,000,000, that’s 6.2 million ounces of gold. Do you hear anything about the Central Bank putting 6.2 million ounces of gold in the vaults at Fort Knox? I don’t. You think the tech bubble was bad? You think the housing bubble was bad? They were puny compared to what the feds are setting this country up for. When you become sick from eating rotten food you get rid of it by throwing up. America’s financial system will eventually have to throw up to survive and when that happens the folks who hold gold and silver will be financially secure.
Go out and buy silver and then laugh it off.
Woman goes to the doctor complaining about shortness of breath and the doctor says. “You’re too fat.” The woman says. “I want a second opinion.”
The Doctor says:
“OK, you’re ugly too.”
America is still the greatest country in the world