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The international banking cartel during the past month has managed to push
the price of gold down to the $850 - $880 level and silver down to the $16 -
$17 level. The manipulation of the gold and silver market is incredibly
obvious just by looking at daily charts of the gold and silver prices. Quite
frequently you’ll see a nose dive in the price of both gold and silver
without any sort of rationale behind the price swing. Also consider the fact
that the price of oil is around $120 barrel which means that gold is
incredibly undervalued relative to the oil price. Even a 10 to 1 gold to oil
ratio is low from a historical perspective and as we speak, gold is well
under that ratio. Gold at the $850 - $880 level is a tremendous buying
opportunity. The corporate controlled media is telling us that the commodity
bull is over and the U.S. Dollar is stabilizing. Therefore it is prudent to
do the opposite of what they are advocating. Anyone saying that the U.S.
Dollar has stabilized is living in fantasy land. The Federal Reserve recently
cut interest rates another 25 basis points and they continue talking about
creating more money out of thin air to bailout banks that are on the brink of
collapse. The U.S. Dollar is heading further down the toilet unless there is
a dramatic reversal in monetary policy and that doesn’t look as if it will
happen anytime soon.
Why is it that commodities are all moving up except for gold and silver?
We have seen a dramatic price rise in oil as well as various food related
commodities. The primary driving forces behind the price rise in oil has been
the war in Iraq and Afghanistan and the inflationary policies of the Federal
Reserve. Inflation is also driving the rise in food prices but that is also
being compounded by government mandated biofuels in which food that would
otherwise be used to feed people is being turned into fuel. This is
indirectly reducing the supply of food which is driving the price of these
commodities even higher. The biofuel mandates are a scam because there is no
definitive proof that global warming is a real threat or if man made carbon
emissions are contributing to this so called threat. Biofuel mandates were
implemented under the guise of fighting man made carbon emissions that
supposedly cause global warming. It is all lies designed to bring in the
eventual phony solution of a carbon tax. If you don’t believe me, read Senate
Bill 2191 which will give the EPA draconian police powers to regulate and
enforce the carbon footprint levels of individuals and businesses.
The one thing that both oil and food related commodities have in common is
the fact that they are rising in U.S. Dollar denominated terms. Therefore it
doesn’t make much sense that gold and silver have declined in value, but when
you consider the manipulation in these markets it makes perfect sense. The
bankers literally create money out of thin air which means that they can’t
have items like gold and silver which store value and represent real money,
move too high up in value in a short period of a time. If that happens, their
fiat currencies will lose credibility and with it the banking establishment
itself would expose themselves to risk. The bankers unquestionably want a
slow decline of the U.S. Dollar’s value so they can set the stage for a
regional or a combined currency for North America and Europe. The formation
of the Transatlantic Economic Council is a sign that this is something that
they might be considering.
Regardless of future currency proposals, the Federal Reserve has adopted
an inflationary policy and there are no signs that they intend to reverse
that policy. It is ridiculous for financial pundits to say that the U.S.
Dollar is stabilizing when the Federal Reserve continues to cut interest
rates and when there are countless stories about how they are creating more
money out of thin air to bailout banks. According to independent estimates,
the M3 money supply is increasing at around 18% on a yearly basis. If the
Federal Reserve were serious about stabilizing the value of the U.S. Dollar,
interest rates would be set at around 20% so holders of the U.S. Dollar could
get some sort of return without inflation destroying their purchasing power.
The failure of the Federal Reserve to increase interest rates to levels in
which inflation does not eat away at its purchasing power is leading towards
higher prices. This will continue unless there’s a reversal in policy.
The death of the U.S. Dollar is really the death of America and the
Federal Reserve is doing an outstanding job destroying its value. As the U.S.
Dollar is devalued, wealth is being sucked out of American middle class and
into the hands of the elite financial interests who are setting up shop in
the Middle East and in Asia. Why would a private central bank care about the
American people when there are major profits to be had via their power to
create money out of thin air? The Bush stimulus plan which is being heralded
as a quick fix for the economy is simply going to lead to more inflation.
With the U.S. government close to $10 Trillion in debt, they paid for the
stimulus package by having the Federal Reserve create more money out of thin
air.
With gold currently trading at around the $870 - $880, this is a clear
buying opportunity. Gold and silver have maintained their value for thousands
of years where as every fiat currency in the history of mankind has been
replaced or collapsed. The fundamentals surrounding the U.S. Dollar are no
different than previous fiat currencies. The Federal Reserve has now devalued
the U.S. Dollar since inception in 1913 by approximately 95% to 99% from its
initial value. How’s that a long term trend? Considering this trend, how can
you go wrong with the purchase of gold and silver? At least gold and silver
won’t go to zero value and it will maintain its purchasing power. One cannot
say the same thing about the U.S. Dollar especially considering that the
Federal Reserve is intentionally devaluing it because that is what’s best for
the financial elites and not the average American.
Lee Rogers
Funny Money Report
www.funnymoneyreport.com
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