Don’t let an inept Fed destroy your wealth – invest in gold bullion.
February 05, 2011 – The price of gold bullion is inching back upward, treasuries are down, stocks can’t figure out where they are heading, and the dollar keeps doing its yo-yo act. Those are all signs of a market that is losing faith in the government’s fiscal policy but has yet to be convinced that gold is not an obsolete relic. It is also a sign that Americans, for the most part, still have faith in their currency and faith in the government to get us through this crisis. On both counts, that faith is misplaced.
Just look at the Fed’s sterling record of protecting the dollar since it first printed paper money 107 years ago. The paper twenty back then is worth half a buck today while the gold in the same vintage double eagle is worth over $1300. A dollar put aside after WWII is now worth 8 cents. The wealth of millions of frugal Americans has seemingly evaporated, but wealth cannot destroyed – it just goes somewhere else.
That’s what the Fed is really good at – channeling wealth from those who have worked hard to accumulate it into the pockets of those who need it least. And Bernanke is not in the slightest bit abashed to say so. To him, we all win when Wall Street wins, and he touts the current rally as proof positive that his policy is working and the economy is on the mend.
Tell that to the structurally unemployed, or those on fixed incomes, or those cast onto the street when banks foreclose on their homes. Even putting that aside, the Fed’s policy of monetization has spurred the stock market only temporarily and is obviously not sustainable.
Don’t confuse faith with wishful thinking. For over a century the Fed has proven that money is better served when invested in gold bullion than left to its stewardship.
