Gold still the best option to protect agaisnt Fiat paper money

Thomas G. Brown |

Read an article in the Financial Times today by Merryn Somerset Webb about gold just hitting it stride and not in a bubble as many talking heads are discussing. Ms. Webb attributes the drop in the gold price to a reduction in jewelery purchases in India which usually attributes for a large amount of gold purchases in the spring due to holidays. She goes on to say that “Adjust the 1980 high of $850 for US inflation and you get around $2,500-a level only the most bullish are predicting now”

My thoughts are that gold and silver are still the best protection against currency devaluation and monetary uncertainty that we are experiencing not just in the US but around the world as folks are waking up to the effects of fiat currencies.

Congressman Ron Paul in his weekly column Texas Straight Talk points out the problems with fiat currencies a compares what the US government is doing to Identity Theft. He points out that if we incur a debt with out our knowledge or consent the bank would fully reimburse you of these debts. But if your government go into debt or borrow money without your consent you are forced to pay for it either in direct taxing or more likely an inflation tax in the creation of new money out of thin air.

A great quote about paper money came from George Washington “Paper money has had the effect in your state that it will ever have to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.”

Hell even Bill Clinton stated to Bob Schaeffer at the Peterson Institute back in April that the monetary problems and the implosion of the financial/banking industry is due to the ending of the Gold Standard.

With all this information pointing to the destruction of the economy being tied to fiat money the fools Congress seem to be in the dark…ah hell these people are clueless. They decided that the new Restoring American Financial Stability Act of 2010is the way to go in terms of correcting and preventing future economic catastrophes. The bill does nothing but expands the powers of the Federal Reserve. Talk about letting the pedophile run the summer camp!

The first step to fixing our economic problems is to do away with the fiat money and bring back Constitutionally (Article 1 section 8&10) sound money in the form of gold and/or silver.

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