From the king, Richard Russell.
I ask myself, what future for our children if something does not change soon, note the part about dictatorship. I plan on reading this book.
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""""Dollar by dollar, billion dollars by billion dollars, the rest of the world, the world that saves -- is buying up the US. We create the fiat dollars with which we buy the world's products -- and the world collects the dollars -- then uses them to buy up the US. The figures are mind-blowing. As of this October, foreign investors owned almost 43% of all US marketable treasuries, 32.7% of all outstanding US corporate bonds, and just over 16% of all US equities. And the numbers keep continuing to climb.""""
And:
A few months ago a subscriber was kind enough to send me a booklet written by the economist, Dr. Franz Pick. He was an economist, schooled in Europe. Pick has also lived through the inflations following World War I and World War II. Twenty years ago Pick was a name recognized by everyone in this industry.
Among other things, Pick was famous for one sentence. The sentence was "Bonds are certificates of guaranteed confiscation." What Dr. Pick meant was that through a policy of systematic inflation, holders of bonds were guaranteed to see their bonds buy less and less in the way of purchasing power as the years went by.
Last night I was reading some of Dr. Pick's writing. Here's what I read --
"There have been three fraudulent state bankruptcies in the history of the United States. The first was in January 1934. The official price of gold jumped from $20.67 per ounce to $35.
"The second dollar devaluation, a comic book event, took place in December 1971. The official price of gold increased from $35 per ounce to $38.
"Then, on February 12, 1973, the dollar was devalued for the third time. The official price of gold increased to $42.22 per ounces.
"The two most recent devaluations alone amounted to about 18%. If we continue to do this, we are going to ruin the Unites States, and we may drift into dictatorship.
"The destiny of the currency is, and always was, the destiny of the nation."
Russell Comment -- Dr. Pick recognized that politicians never resist the temptation to inflate their nations out of economic trouble. I'm sure that if Pick was alive today, he'd say that "Nothing has changed."
Question -- Why does the US government continue to keep the official price of gold at $42.22 when the free market price for gold is over $600?
Answer -- This is the government's way of denying that the dollar has been greatly devalued. It's the government's method of keeping its citizens "stupid" and unaware of what's been happening to its money.
Remember, rising gold is the free market's way of devaluing paper currencies. Since the Federal Reserve creates our fiat dollars, you can imagine that the Fed does not want to see the dollar fall apart. A dollar that is very slowly declining against gold is acceptable, but a dollar that is rapidly declining against gold (i.e., a surging gold price) is something that the Fed most assuredly does not want. This has given rise to talk of the Fed manipulating the gold price, particularly at times when gold is surging. Does the Fed really manipulate the price of gold? I honestly don't know -- I'll leave that question to others, such as the Gold Council.
Subscribe to Richard, he is worth the money:
Do not like posting stuff you should pay for but the above fit this thread so well and I felt was important to the ongoing discussion.
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