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Dump the Fed, Return to the Gold Standard
With the $5.3 TRILLION Fannie Mae/Freddie Mac crisis poised to drive the U.S. economy over a cliff...watch out as the US Dollar and Stock Market head do south. On Sunday, Ben Bernanke revealed Fed plans to print billions more unbacked dollars to help bail out Fannie & Freddie...and Treasury Secretary Paulson unveiled his plan to print billions more to buy their stock! What is this money being backed by? Ask yourself that question.
Fed chief Bernanke is famous for saying Washington can fix any crisis simply by dropping tons of money out of helicopters. Now, it looks for all the world that Bernanke and Paulson are doing just that! On Sunday, Bernanke announced that Fannie Mae and Freddie Mac can borrow newly printed dollars from the Fed’s discount window and Paulson asked Congress to approve an investment scheme that would pour billions more unbacked paper dollars into the nation’s two largest mortgage lenders.
This is hugely inflationary...the worst news possible for the U.S. dollar...and one of the greatest opportunities in decades to profit from investments that naturally soar when the dollar sinks.
Return to the Gold Standard
Among gold and silver investors there is a common cry to get rid of the Fed and return to the gold standard. However, with the Establishment having controlled our schools and universities for decades, the masses are duped into believing that the money and banking are much too complicated to be understood by anyone but those educated at our “more esteemed” universities.
Without a doubt, the masses believe that the arcane workings of the Fed and our monetary system are to be left to “the better educated,” to those who have “made a life of studying economics” and even have doctorates from Yale or Harvard. If you doubt this, try criticizing the concept of central banking (The Fed is our central bank.) in front of anyone with a college degree.
You may run across someone who is quick to criticize the Fed’s actions. “The Fed should lower (or raise) the discount rate,” is a likely comment. Those who really want to show their knowledge of our banking system may lay something like this on you: “The Fed should cut the minimum reserve requirements on CDs.” Better yet, you may get, “The Fed needs to raise the margin requirements on stock loans to cool stock market speculation.” Now you know you have a college graduate who sat through a couple of finance classes. This person has been completely indoctrinated into the world of central banking and government control of money. He (or she) is your average college graduate, and that is how the fraud of the Federal Reserve System is perpetuated. But, don’t even begin to try to get the average college graduate to discuss dumping the Fed and going back to the gold standard.
Fortunately, calls for dumping the Fed and returning to the gold standard come not just from “gold bugs” but also from economists who truly have made the study of economics lifetime endeavors. One such economist was the late, great Murray N. Rothbard.
Murray N. Rothbard was a scholar extraordinaire who made major contributions to economics, history, political philosophy, and legal theory. He developed and extended the Austrian economics of the legendary Ludwig von Mises and established himself as the principal Austrian theorist in the latter half of the twentieth century. Rothbard applied Austrian analysis to historical topics such as the Great Depression of 1929 and the history of American banking. Oh, yes, Rothbard received a PhD from Columbia University in 1956.
In 1995, Rothbard wrote a piece titled Taking Money Back, which was printed in the September and October issues of The Freeman. Taking Money Back outlined Rothbard’s reasoning and steps for dismantling the Fed and returning to the gold standard.
If you are interested in furthering your knowledge and understanding of money (and the flaws of our monetary system), start with a couple of Rothbard’s books. Excellent choices would be What Has Government Done to our Money?, The Case for the 100% Gold Dollar and The Case Against the Fed or listen to the "Good as Gold" or "The Creature from Jeckyll Island" audio calls on G&G Associates website.
These books and audios will make you uneasy about the current financial state of affairs, but they will make you much more comfortable about investing in silver and gold. To learn how and where you can get US Mint Gold and Silver at 15-25% off the U.S. Mint price, contact me and set up an appointment and we'll get you started.
The truth is if you count on Washington to fix this crisis -- let alone tell you the truth about the dangers it poses to your finances -- you're in for the biggest disappointment of a lifetime.
I don't want that for you. I want you to have an unbiased, crystal clear vision of the actual state of the economy as we approach mid-year. That's why ... you need to make sure you are on future training conference calls. For more information on the calls, please visit www.gngassociates.net, click on the "Calendar" link for more details.
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LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. G&G Associates expressly forbids from having a financial interest in any security that is recommended to our subscribers