Paper Money Slaves

Since the US government dumped the gold standard in 1933 and the silver standard in 1964, it has consistently colluded with big banking interests to contain the prices of these two precious metals. Why?

Well, one easy answer is that high silver and gold prices in dollars makes the US dollar look anemic and highlights economic weakness. Higher interest rates usually follow as well, and when you owe the trillions the US owes that's just plain bad news.

However, I think the real reason the US has promoted fiat paper money over the better part of a century is due to a more sinister reason. The banking cartels and the super wealthy who are the puppet-masters behind our alleged democracy like the fiat money system for the power, wealth, and control it affords them. Gold and silver gives any citizenry economic and therefore ultimate political independence as these metals have been used in commerce for over 5000 years all around the world. They can't be easily created on demand merely by the command of the Powers-That-Be as paper money can and does. When a man owns gold and silver coins he isn't dependent on any government or economic regime for his life and well-being. If he doesn't like the men governing him he can throw them out or move elsewhere, knowing his fortune will be intact. Unfortunately, paper money is printed and "backed" only by the issuing governmental body. History is littered with examples of worthless paper money and impoverished inhabitants following a political collapse or revolution.

Today, 99% of all US citizens have the majority of their assets in paper dollar denominated funds. In addition, they have come to depend upon the promise of governmental programs like Social Security and Medicare for their old age retirement. New health legislation has introduced the specter of a future in which no government health card would mean no healthcare. Of course, welfare and food stamp programs continue to grow without pause.

I believe that our fiat money system, together with the bewilderingly wide variety of government sponsored entitlement programs, have carefully created an entire slave caste in our country that's growing steadily. These slaves are now so hooked into the "Matrix" that even the mere thought of rebellion is terrifying to them. Any future US government will be able to treat it's "dependents" in any way it sees fit with no fear of retaliation. After all, why would any sane person rebel if it meant starvation, utter impoverishment, sickness, and death for himself and his loved ones?

So how can a freedom-minded patriot help to insure his liberty now and in the foreseeable future? Buy gold and silver. These precious metals have always existed outside the total control of any political regime, including the US government, and will insure the USA will always own one less slave!

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

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CEF vs. GLD & SLV

"Paper" gold and silver is widely traded today in three investment vehicles, the close-ended fund CEF (Central Fund of Canada), and the twin ETF's GLD - SPDR Gold Trust, and SLV iShares Silver Trust. Whole oceans of ink have been spilled detailing the good and not-so-good points of these funds. My goal here is to distill the salient points down to the fewest words possible to help make your due diligence task somewhat less...well...tasking.

To Audit or Not to Audit - CEF's bullion reserves are audited by an independent firm, Ernst & Young LLP., twice per year. GLD and SLV on the other hand do not permit any such transparency. Echoing the former sentiments of disgraced trader Bernie Madoff, investors are just supposed to trust the "word" of the funds that the bullion is there.

Insurance - CEF's gold and silver is fully insured by Lloyd's of London. GLD and SLV fully acknowledge that their "reserves" are not insured against any happenstance that may prevent them from repaying their investors in gold or silver. They even reserve the right to compensate investors in US paper dollars if necessary.

Counter Party Risk - CEF reserves are fully allocated and segregated with the name of each investor attached to particular gold and silver bullion. GLD and SLV's "alleged" bullion is unallocated and unreserved. There's no telling just how many competitors you'd have to fight off to get any of your precious metals with these funds.

Conflicts of Interest - CEF has been in the close-ended fund business backed by gold and silver since 1961. Their directors are well respected in the precious metals market. The custodians of GLD and SLV are HSBC and JP Morgan respectively.

Where do I start with these two banks (above)? Well, let's just say if there was a Who's Who publication of precious metal naked shorters and market manipulators these firms would be prominently featured. How can you trust a custodian of your long interest metal fund who is accused of making fortunes by manipulating the metal prices downward? Anyone thinking of the fox guarding the chicken coop metaphor here?

Premiums Above Metal Price - We finally reach a point that is in marginal favor of GLD and SLV and to the deficit of CEF. CEF unlike it's ETF step brothers often sells at a premium to the price of gold and silver. If you're a day trader that means you can buy and sell shares of the ETF's more cheaply than you can with CEF. However, for my part, I'm in a long term holding strategy so a small premium is the least of my concerns. Frankly, I see the premium as just an outward manifestation of the inherent preference by sensible investors for a fund that has actual, real gold and silver backing it up rather than glittering ethereal promises of metals.

As you might suspect, I own CEF and wouldn't touch GLD and SLV with your...well...hand!

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

CLICK ADS BELOW FOR FREE DISCOUNT!

Flying Money

Around 800 AD, The Chinese Tang dynasty invented the first paper money. China was a big country, and the rulers of China didn't like the idea of having to transfer all that heavy gold and silver around on a constant basis. The money certificates were exchangeable by merchants for the stated amount of precious metals in any city in the Empire. This remarkable innovation in trade was nicknamed "flying money" by the Chinese merchants, due to the frequent problem with the valuable paper blowing away on the slightest breeze!

A couple hundred years later the Song, Chin, and Mongol rulers began to use paper currency throughout China. By 1309 AD, the currency called the Yuan, had depreciated 1000%. Often the government would refuse to exchange the old money for new as the old became battered and useless. By the end, the great innovation that so impressed Marco Polo had ceased to have any connection to gold or silver, and reverted to it's inherent worth...nothing!

Every paper currency that followed in Europe, America, and around the world has either collapsed or become substantially devalued. In 1950, a US silver dollar bought 4 gallons of gas. It would do the same today due to its silver content if you sold it for US paper dollars. A paper dollar saved from 1950, however, wouldn't even buy half a gallon of gas at your local pump. That, my friends, is inflation and currency devaluation. Please keep in mind as well, that this loss of buying power occurred during the period of time where the USA was the Mightiest nation on Earth!

Is worthlessness the inevitable future for the US Dollar? In a word, yes. It's purely a matter of time. Perhaps it will be a matter of days, months, or years, but it will eventually become WORTHLESS. The process of paper currency devaluation is like an hourglass with an elastic neck, the sand will continue to slip away, only the rate at which it falls is open for debate.

There are a few truisms in historical economics. Governments will always seek to debase currency because it allows them to spend without raising taxes (which everyone who votes generally hates). Think about that for a moment. If you had a printing press and could print your own money seemingly without a reckoning, wouldn't you print away 24/7? When the government gets print-happy, however, the money supply soars leaving manufactured products & supplies in the dust. Too much money chasing too few goods means inflation, or worse, hyperinflation.

Buy 90% "junk" silver coins, American Silver or Gold Eagles now and prevent your money from FLYING AWAY!

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick