GLD and SLV are doing so well. I am quite surprised there is no interest in this area.
fiat currency. does this mean anything to anyone here?
..........................
from an email from one of the precious metals firms:
Dear Subscribers:
Be aware that the Fed has chosen a course of guaranteeing junk paper instruments
to buoy securities firms that would otherwise be under water . . . or out of
business. You should not be surprised that many journalists ''report'' that
this is fixing the economic crisis.
Certainly, the stock holders of Bear Stearns are happy about the federal
handout. What we are witnessing now is a publicly traded stock -- which
otherwise would be worth pennies -- is now magically worth ten dollars, because
of a government edict (which is also known as a fiat).
Considering that our fiat-currency Dollar is a piece of paper backed by the
''full faith and credit of the United States,'' then this new paper should
rightfully be called ''fiat-securities.''
Unfortunately, the general public is not cognizant that government intervention
in the free market is ultimately at the expense of the Tax Payers. Let us hope
that ten dollars does not become worth as much as a penny stock, which is
basically what the government is suggesting.
There is no way to change the idiom that Government cannot print wealth. That
said, you can bet that governments and journalists will continue to claim they
can. The U.S. Gold Standard, which began its demise in 1913, would have offered
protection to Americans.
Although the Gold Standard was eliminated, private investors today can institute
their own free market alternative . . . and that, dear friends, is why we own
bullion.
Best of Investing,
Monex |
