Why Gold and Silver Ownership is Very Important!! |

Why Gold and Silver Ownership is Very Important!!

August 14, 2011 Economy Updates No comments

Watch this educative video on Inflation and its relationship with Gold and Silver

Egypt experienced riots and looting as a result of food inflation and this shows a glimpse of what some major cities in the United States will likely look like come year 2015 due to the Federal Reserve’s reducing interest rate to zero percent and quantitative easing (printing and devaluing paper dollar to promote exports) to infinity. On December 16th, 2009, NIA named Time Magazine’s 2009 ‘Person of the Year’ Ben Bernanke our ‘Villain of the Year’, saying he created “unprecedented amounts of inflation in unprecedented ways” and “When it costs $20 for a gallon of milk in a few years, Americans will have nobody to thank more than Bernanke.”

Over the past year, agricultural commodities as a whole have outperformed almost every other type of asset, with silver being one of only a few other assets keeping pace with agriculture. (On December 11th, 2009, NIA declared silver the best investment for the next decade at $17.40 per ounce and it has so far risen to its current price of $39 per ounce).

For years there has been a call for financial literacy in our economy as most people are unaware of whats going on, they just go out there and do what ever one else is doing and wonder why they are not moving ahead financially. If there is one concept you need to understand about money and economics this is it: the value of the dollar and commodities (gold, oil, silver) is inversely proportional to each other. This means that as the value of the dollar decreases (like we know its doing every minute) the prices of these commodities go up.

Rising commodity prices are only a symptom of inflation. The rich has an investment plan for inflation and that is in acquiring commodities. While they invest in other things, they buy physical gold and silver to protect there wealth against inflation.

The reason NIA was so bullish on agricultural commodities going back two years ago when we produced our first documentary ‘Hyperinflation Nation, is because while gold is the best gauge of inflation and is often the best tool for predicting future money printing, agriculture is where the majority of the monetary inflation ends up going after the Fed’s newly printed money trickles down to the middle-class and poor. With gold prices already surging two years ago “food prices have the potential to surge most during hyperinflation”.

If you don’t have enough money to accumulate physical gold and silver, it is important to begin establishing your own food storage, and store enough food to feed you and your family for at least six months during hyperinflation. Many store shelves in Egypt are now empty after recent panic buying, with shortages of nearly all major staple items throughout the country.

The U.S. Treasury is getting ready to sell $72 billion in new long-term bonds next week, as the U.S. rapidly approaches its $14.29 trillion debt limit. The debt limit is now expected to be reached by April 5th and Treasury Secretary Geithner warned the U.S. will see “catastrophic damage” if it isn’t raised. With the Federal Reserve now surpassing China and Japan as the largest holder of U.S. treasuries, the real “catastrophic damage” ahead will be hyperinflation as a result of the U.S. government doing absolutely nothing to dramatically reduce spending.

It is an absolute joke that Obama during his State of the Union address announced $400 billion in spending cuts over the next 10 years, but then the very next day, the Congressional Budget Office increased its 2011 budget deficit projection by $400 billion to $1.48 trillion.

Not raising the debt limit would be a good thing, as it would force Washington to live within its means. Sure, the stock market would collapse and the U.S. economy would enter into its next Great Depression, but at least it would save the U.S. dollar from losing all of its purchasing power.

In fact, the standard of living for middle class Americans might actually improve if the government allowed the free market to put our economy into a depression, because goods and services would get cheaper.

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