Here's an interesting excerpt from 321gold.com
I have
to read dozens of articles every day to pick out the timeliest and most
pertinent for our readers. With the startling news coming out daily, even as
cynical as I have gotten, I can't keep up.The
Federal Reserve destroyed the dollar last week along with the $3.7 trillion
dollar money market fund industry and all savers. If a money market invests in
the safest dollar instrument, 90-day t-bills, the return is zero. It still
costs money for administration, how does a money market stay in business? If you
get a zero-percent return on your savings, how much do you want to save, given
that there is great risk in even the dollar?It's
over folks; the Fed has fired its last cannon. Even the D-Word is being
mentioned on a regular basis. Interesting to me that the US government finally
admitted a couple of weeks ago that we have been in a "Recession"
since last December.But we
aren't in a "Recession," it's a "Depression" for sure. It's
going to be worse than the last one, far worse. In 1932, we were the world's
biggest creditor nation. Our currency was backed by gold. If you reached in
your pocket for change, it was silver and copper, not slugs.Now we
are the world's biggest debtor nation and we are throwing money down black
holes and telling taxpayers it's in their best interest. Really?GM has
lost $80 billion dollars over the last 4 years. Their sales went down 37% in November
alone. Handing money to them is like handing money to a crackhead.The
Federal Funds rate, the rate for lending overnight between banks is now
officially targeted between .25% and zero. It can go no lower. Now the only
question is how low can the US dollar go. I'm not sure; I don't think it will
go away. I think they will end up adding 3 zeros or 6 zeros or 9 zeros. If you
want to forecast the future, look at Argentina or Mexico or Brazil as they
destroyed their currency. Don't think for a moment it's not going to happen
here.Bernanke
is doing his best to outspend Greenspan. Just as Greenspan is finally getting
full credit due for his serial bubbles, Ben "Helo" Bernanke is giving
the economy his best shot. If you suspect even for a moment that these guys
have a clue, watch Paulson on the boob tube with the sound turned off. He's as
nervous as a long-tailed cat in a room full of rocking chairs. He knows what he
has done and can only pray the system holds together long enough for him to
escape.The
prediction of a crisis coming at the time of the inauguration of Obama is
probably based on facts known to the government. I suspect the decision has
been made that an announcement of a bank holiday or something similar has
already been decided upon. We have a crisis, indeed the entire world's
financial system is coming unglued and everything the US government is doing is
only going to make the problem worse.When
people have lost their jobs, their homes, their pensions and all hope of a
future, they are going to be pissed. We are going to have civil unrest. The
government will overact and people will be shot. The government would like to
have a nice Fascist State but we are more likely to see a revolution than a
police state.You
still have a chance to protect your future. The government is doing everything
necessary to create hyperinflation. They have to, there is more debt than money
so they see inflation as the only solution. You can still take positive action
to protect yourself and your family.
