Inflation, Gold & Silver and the Federal Reserve

Let's think for a second about how our world would be if our monetary system were simply backed by gold and silver? This was the case no too long ago in our history, but along came central banks and with it the ability to debase our currency.

These central banks (i.e. Federal Reserve, Bank of England) have done nothing but pursue inflationary practices, and in the process have destroyed our currency. Central banks are a lender to the government, and therefore the interest on those loans must be paid by taxpayers. Let's take a look at the Federal Reserve system.

Instead of allowing these big banks to go under like a free market system should, the Federal Reserve has stepped in and bought up the toxic assets on these banks balance sheets. This is highly inflationary in itself and serves no good to the public. The real market would say if you fail, tough luck, but they won't let the free market function.

After the first run on the banks ensued in the early 20th century, the Federal Reserve was created in 1913. It was created under the lie that there needed to be a lender of last resort when there was a run on the bank. It's a lie because it undermines a sound monetary idea, that banks should be able to lend out 90% of the money on deposit.

Since the inception of the Federal Reserve in 1913, our U.S. dollar has lost 95% of its value. The Federal Reserve is actually the third central bank in the U.S. The other two existed in the 18th and 19th centuries.

The government printed so much of our first paper currency called the Continental that it earned the term "not worth a Continental". The writers of our U.S. Constitution tried to make sure that our government would never again have the power to create a central bank able to create money out of thin air.

Our founding fathers were so smart indeed, that they made sure to include in the Constitution that only gold and silver coins could be used as currency.

They knew the dangers of a government with the power to print as much money as they wanted, so they tried everything they could de deter that from happening.

Many don't know this, but the Federal Reserve is a private bank. That's right, and they loan money to the government only to be paid back with interest by the citizens. A more sinister reality is that the Federal Reserve was set up to make money for a few elite.

This is very wrong and it goes totally against what our U.S. Constitution says is allowable to be used as money.

See, gold and silver are real money with intrinsic value. Paper is not real wealth because it can be produced at will. There is no rarity is paper. The ability to produce as much paper money as desired is called inflation. A balloon is inflated with air, yet paper money is inflated with a printing press.

When there is more paper money circulating without an increase in productivity, you have inflation. Inflation is simply a hidden tax. Most people don't have a clue that the value of their money is disappearing, and that's why it's a hidden tax.

Gold and Silver will always be a store of wealth. They may go up or down in nominal terms, but essentially the value remains the same. In ancient Rome you could buy a handmade Toga and shoes for an ounce of gold. Today you can still buy the equivalent nice men's suit for one ounce of gold.

The smart investors will be in gold coins, American silver Eagles, silver coins, gold bars, and American Gold Eagles. The time has arrived for you to get your money into gold and silver. Please take my advice and prepare your finances.

God Bless.

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