If you’ve ever asked yourself or others the above question, as I have … then keep reading.
Personally, I do a LOT of reading to develop a broad understanding of all things impacting our family and finances. I’m constantly scouring books, magazines, blogs, numerous newsletters, and attending forums and workshops to gain insight from as many different sources as possible to learn the truth.
From time to time, I come across really insightful pieces that I either add to my library or share with family and friends. Today, I decided to share one such piece with you. My source was the MilesFranklin.com newsletter written by David Schectman. Why is this item important? Failing to understand how bad the U.S. Government finances really are will seriously impact you. You must take steps to protect yourself. No kidding. Don’t think that “it can’t happen here” as it has hundreds of times throughout history. Read on:
Richard Russell (dowtheoryletters.com)
April 25, 2013
The US is now borrowing money to pay for the interest on our national debt. The US now borrows roughly 46 cents for every dollar that it spends. We’ve finally come to the point where our foreign creditors no longer want to lend money to the US to cover our outrageous debts. What’s next? The Federal Reserve is now buying the US’s bonds. How does the Fed pay for the bonds? The Federal Reserve pays for the bonds with money that it CREATES out of thin air. This process is systematically shrinking the purchasing power of the “dollar.” And worse, the world is fully aware of it. Almost every nation is now moving to protect itself against the shrinking purchasing power of the dollars in their reserves. So far, Americans seem totally unaware of what is happening to their dollars. The government is lying about inflation in our lives. Yet we see inflation in our energy and gas bills, in the price we pay for food at the supermarkets, in the cost of imported goods, in our medical bills, in college tuition, and in almost everything else.
The real danger in all this is that the move away from dollars is accelerating. At some point in the weeks or months ahead, the “escape from the dollar” will break out into the open. At that time interest rates will suddenly and automatically rise, as the dollar is forced to defend itself (higher rates render the dollar more attractive to our creditors). When rates start to rise, the bond market will begin to crumble. The exact timing of all this is impossible to predict. But that doesn’t matter — the implications of a bond crash are so ominous that they transcend precise timing. The time to prepare for safety is now.
Ultimate safety lies in actual gold in your possession. If the US government really cared about its people, it would now (like China) be urging Americans to accumulate gold for their protection. Instead, Uncle Sam insists that gold is not money, and worse — does its best to hold the price of gold down.