Saturday, November 28, 2009

Gold vs US Treausry Bills

Gold, over a good number of decades, has beat US Treasuries of any maturity handily. No contest. US Treasuries are something "safe" that people run to when they feel threatened. I guess they do not do facts. One of these days, that is all going to change.



Actually the real negative rate is a lot lower since the CPI (consumer price index) is rigged to be unrealistically low.

"With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money to defraud and plunder the people." - Fredrich August von Hayek

"The gold standard has one tremendous virtue: the quantity of the money supply, under the gold standard, is independent of the policies of governments and political parties. This is its advantage. It is a form of protection against spendthrift governments." - Ludwig von Mises

"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." - Alan Greenspan, 1966

"If you hold dollars, [or US Treasury debt] the Fed and the Treasury can confiscate your wealth, virtually at will. That is real power.

And, most people put up with this. Amazing! Must be the child like minds of adults. Plenty of people know they have a choice of keeping value stored in dollars in the hands of a banker, or in metal (gold/silver) and choose banks. Part of that may be that many do not feel comfortable being responsible for the safe keeping of their own savings. When people have been doing this type of thing for too long, politicians, gangster banksters and others in the financial arena start to think about ripping off the fools, suckers. That is what is going on now, big time. And, still, you ain't seen nothing yet. The Fed has already increased the base "money" supply by over 100%. They did that within a 6 month period. There is a baked in the cake 50% devaluation of the dollar at some point further out in time, for starters probably.


Just as the CPI numbers are rigged to the downside, so are the unemployment statistics.

Unemployment Rates By County in the US.

This map shows unemployment rates spreading over the country [US] from January, 2007 to present.As bad as this looks, it is twice as bad according to Shadow Stats' numbers. SS uses the much more realistic method that the federal government used to use before the Clinton administration.

Another picture of unemployment:



There is and will be even more incentive for the federal government to increase spending or at least keep it elevated, all when it is already broke, so that it has to keep borrowing. At some point, it will just be able to borrow from the Fed only. The Fed will create dollars out of nothing to loan to the Treasury, increasing the supply, devaluing the US dollar.

Having gold and silver in your own hands is a no brainer.

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