“If the average American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and the corporations that will grow up around them, will deprive the people of all property until their children will wake up homeless on the continent that their fathers conquered. ” –Thomas Jefferson
Wow, that’s spooky prophetic!
Bernanke wants the Fed to increase assets prices. Alan Greenspan, writing in the Financial Times recently admitted that the Fed is out to lower the value of the dollar. Their idea involves injecting money into the bond market, in an effort to get asset prices up, and keep interest rates low.
The logic is that, higher asset prices make people feel richer, and more inclined to spend money. But if creating prosperity and wealth were as simple as printing money, then Zimbabwe would be the wealthiest nation on earth.
For many years, the willingness of the world to accept dollars has been the key to the prosperity in the United States. Think about just how crazy it is that dollars created by the world’s biggest debtor nation, with nothing backing their value but the Governments ability to tax and print, is accepted as the world’s reserve currency.
The illusion of prosperity in the US, for years has been fostered by the grace of our foreign creditors. But it is becoming obvious, that these overseas investors are beginning to worry about the situation in the US. The big money has for some time now been quietly moving out of dollars and treasuries and into gold and commodities. The big money realizes that in order to maximize their returns, they must quietly exit dollars and slowly acquire gold and commodities.
At some point, the tiptoeing out of fiat currencies and movement into gold will turn into an all out sprint. At some point, the world will realize what a scam accepting dollars as the world reserve currency really is. Once again, this is why we own gold and silver, because when the tiptoeing turns to an all out sprint, it will be far too late to get longer gold.