Well, gang, the Obama administration sure has created a lot of money lately! That's great, right?! Uh, well, that depends on where you are in distribution. You see, money, in our system, only measures wealth; it isn't wealth itself. Let's face it, true wealth only exists as a result of human effort. Is gold in the ground wealth? Well, only sort of. It's not useful wealth until someone makes the effort to extract, refine and mold it into a useful medium that it can truly be called wealth. The same can be said for just about anything. Rocks are a form of wealth but until it's cut or crushed and sorted into various sizes (countertops or gravel), it's not useful. In our system, someone has to borrow currency into existence. This means that someone is promising to create wealth tomorrow for cash today. Those promises can be made far faster than anyone can keep. Obama has spent more money so far that all previous presidents.....combined. What that means is the counters of wealth are being increased much faster than new wealth is being created. The only possible result is price increases and the faster he spends money, the faster inflation will run. You only benefit if you are the recipient of the new money at it's creation. Then you can get the full effect of buying power before the general price increase. Can anyone say, "Zimbabwe"? There is an alternative and it's not good. Our government could renege on it's debt which would wipe out its credit and about 95% of the currency. Remember, the currency exists because someone promises to pay. No debt, no currency. That would make the dollar scarcer and, surprise!, more valuable. Prices will plummet, except what you already owe and dollars will be harder to acquire. This would put Joe American at a serious disadvantage. Anyone think the bankers will allow themselves to be put to disadvantage by allowing hyperinflation? Me, neither. The best answer is to get out of debt, now. Sell your home and rent or pay it off. Harry Dent (http://www.hsdent.com/) predicted last fall's stock market collapse way back in 1998. I have the book. He's predicting more trouble later this year, especially for real estate. Do I think the US Government will repudiate the debt? Not voluntarily. My concern is that things are out of control.

Banking with Gold

Let's assume for arguments' sake that gold is money. I know plenty of people believe that but I'm asking the non-believers to cross over for just a minute or two. Now that I have your attention, the question I want to address is: How can we bank with gold and do other transactions that currently require us to use FeRN's (Fradulen...excuse me, Federal Reserve Notes)? I'm glad you asked that. I have an idea. First remember that a prime problem with banking using gold is bank robberies. The crooks find out where the gold is and go for it. My idea fixes that problem. In our day of instant information, why not use Thomas Jefferson's approach to storing power to store gold? He said he knew of no safe repository except in the hands of the people. Hmmmm. Not bad. How about a banking SYSTEM that leaves the gold in the hands of the members and only the amount they are willing to risk is combined with other depositors' risk capital for lending to a good business proposition? Here's how it would work. Let's say you have 100 T.O. of gold. You're not willing to risk all of it but you are willing to risk say, 20 troy ounces. The banker (in this case, me) doesn't care how much you have in total, only what you are willing to commit in case the right deal comes along so you can earn some interest or profit on it. Okay, if all members subscribe to fixed amounts, the bank keeps that information on hand so the members can be called on to evaluate the deal that gets past the vetting by the banker (remember? me.). Only really solid deals will be offered and the member would subscribe or not subscribe. The only time the gold would be in one place is delivery at closing where the investment or loan is secured by something. Because the vast bulk of the gold is out in private holdings (depositor information is kept secret so no one knows) there is no hoard of gold to rob. Neat, huh? Plus, the only deals that would pass muster would pay return in gold or food or some other agreeable commodity. By using gold (silver and platinum will work as well) eagles, which are legal tender, the face value of the coins are what is used for accounting and will keep the members well under the threshold of income tax liability. Imagine! An investment that would pay back in gold! Maybe food, too!
It's got possibilities!