- Sun, sun, sun here it comes...
- George Harrison
Gold
People ask people who buy gold, why? We will only answer for ourselves. We realize the wisdom of the founding fathers who chose the precious metal to back our initial currency. It would provide stability in pricing (read anti-inflation). It would ensure that future leaders of the nation kept spending in a balanced form (read no deficit spending). It would be accepted everywhere and the thrifty would be rewarded with social mobility. There are other reasons. They are all good. However, the corrupt understood the limitations it placed on them to expand, control and of course, get rich. Many came to America with money from their aristocratic families. They sought the easiest way to get money, through banking. It is why the attempt to form a national bank was opposed. The founders knew debt is a danger in all its forms. Nevertheless, the rich keep plotting. They keep trying. In their heart they do not believe that all men are created equal. They fight against social mobility and workers to be paid fairly.
Flash Forward
The nation experienced a series of bank runs that ended up as recessions for the nation. Looking back at those boom and busts situations, we see two basic reasons. One, banks buy into each other's investments. Two, they leverage to the hilt to maximize their investments. Before the introduction of the Federal Reserve, there were no rules. All their profit is basically from debt. The more loans that can be serviced along with government notes, the three o'clock country club cocktail life is a sure thing. Until more and more people seek that style of life by any means. Enter fraud. Word gets out. Bank run. Bank collapses. Enter recession.
Enter J.P. Morgan
He realized that leverage is a weak link. If there was a "special bank" like they had in Europe, it could provide capital to cover a crisis. This would stop a run. He pushed the idea. He got a Rhode Island senator on board by having the daughter marry a Rockefeller. He got a weak president (Wilson) to sign the bill which created the Federal Reserve. This was the first nail in the coffin for our currency and gold. Clouds began blocking the sun.
Enter FDR
The new president realized that he needed to get people back to work in order to get the economy going again as the Depression was on hand. His first act was to ban gold. He knew deficit spending would be needed and gold kept the government in check. Gold died on that day. The sun no longer shined in America. Since then, our dollar has lost 95% of its value. This is inflation and what it does to our standard of living. It has declined. We were number one until deficit spending became a way of life. Today, the liability column exceeds $50 trillion. Dear Reader, the US is no longer number one in the world. We are number 22 in reality.
How can that be and why, you ask?
Because we are innovative. Because we have a strong military. Because intrinsically, we offer what no one else offers. An immigrant to America can become a citizen. This is not the case everywhere else, although some of the obstacles to citizenship are changing. However, the rich keep plotting. They fought unions by outsourcing. The wealth gap began. By controlling the media, citizens are misled for the cause of problems in our economy, our standard of living, in America.
The cabal started by JP Morgan controls our currency. The military got on-board because most of the deficit spending went to them. The world trades in US Dollars, however this is being challenged.
Outlook
We have nations seeking to break the control of the dollar being the world's reserve currency. We have record deficits with even more "off the book" liabilities. We have the reckless danger of world war, and we know one thing, gold will retain its value. We told you in previous pieces that gold will rise. Last week, it went past the $2000 level. If you look at a daily chart for the last month, it reveals a cup and handle chart formation. This is very bullish. We see it rising to $2129. We get a second support from both the XAU and HUI gold indexes which also showed a cup and handle pattern on the weekly chart. When gold tests this projected level, we will reevaluate. Keep in mind, in 2022 as the Federal Reserve began raising interest rates, the word against gold was it did not pay a dividend and higher rates would cap any advancement in price. Folks, many growth stocks do not or did not offer a dividend, but they advanced in price. Gold fights the Fed and they know it. They are Fiat. They are fake money. No matter what they do with interest rates today, gold is the real thing. It is why we are for gold.
- Little darlin', it's been a long, cold, winter Little darlin', it feels like years since it's been here here comes the sun, doo-doo-doo-doo here comes the sun, and I say, it's alright.
Thank you, George Harrison. Miss you. RIP...Peace.
