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I just wanted to pass along this article on why Gold and Silver are important and often manipulated.
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[h2]Gold And Silver: Why They Are Important, And Why They Are Often Manipulatedhttp://neithercorp.us/npress/?p=184[/h2]
http://neithercorp.us/npress/?p=184
By Giordano Bruno
Neithercorp Press - 11/18/2009
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http://neithercorp.us/npress/?p=184 http://neithercorp.us/npress/?p=184
For decades, gold and silver investors have been warning the masses about the catastrophic weaknesses inherent in fiat currencies; currencies backed by nothing but empty promises and printed out of thin air ad nauseam by Central Banks. Precious metals, they said, were the only safe form of currency because they were finite, and could not be duplicated, meaning they could not be inflated to worthlessness. Until recently, these warnings have gone almost completely ignored by the general public.
Critics of gold (often proponents of Central Banks) contended that gold was an unrealistic and outdated foundation for an economy because its limited supply restricted liquidity, and kept a country from being able to "spend effectively."
Well, America is closing in on the year 2010, and most of us have now had an opportunity to see that "free money" actually has a price. As I write this the dollar is hurtling down against numerous other currencies due to the private Federal Reserve's decision to keep interest rates artificially near zero, as well as their decision to pump trillions of dollars of liquidity into foreign and domestic banks. Bloomberg estimates that nearly $24 Trillion has been pumped into the financial system by the Fed:
http://neithercorp.us/npress/?p=184http://www.bloomberg.com/apps/news?pid=20601087&sid=aY0tX8UysIaMhttp://neithercorp.us/npress/?p=184
What critics of precious metals didn't seem to grasp was that gold's limited supply was actually a saving grace, not a weakness. Gold has been used as currency for over 6000 years, and the U.S. Dollar was backed by gold right up until 1971 when Richard Nixon severed the Greenback completely from any tangible resource, though the Dollar to gold ratio had been waning since the establishment of the private Federal Reserve in 1913. America's greatest industrial and financial accomplishments were made during the gold standard era, so to claim that a gold standard hinders economic progress is simply absurd. Even former Fed Chairman Alan Greenspan once vehemently defended the use of a gold standard:
http://neithercorp.us/npress/?p=184
"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
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, 1967
http://www.usagold.com/gildedopinion/greenspan.htmlhttp://neithercorp.us/npress/?p=184
Its a long article and you could continue reading it here. http://neithercorp.us/npress/?p=184