Correcting or Dying

With the economic stimulus package ready to be signed into law and 787 BILLION dollars about to be flushed down the toilet:
The DOW is down over 3.5% into the 7500 range.
OIL who all the economic drools thought was somehow tied to Gold drops below 36 dollars a barrel.
GOLD is up over $969 and Silver passes $14.10.

The reason...Real money becomes valuable when too much Fake money shows up.

With governments around the world dumping TRILLIONS of units of their unbacked paper credit and "monies" on the world economy they are creating INFLATION in regard to REAL MONEY.

THINGS that are made may very well fall into depressionary value but GOLD and to a lesser degree SILVER, will not. Supply and demand on the individual level affects cars and boats and trinkets, but when it comes to GOLD and SILVER as a store of value and as wealth that can not grow old or be destroyed there will always be more demand than supply, especially in bad times. The BIG money people, governments and banks all know they can print money and make the masses happy for a time. Day to day paycheck people and hand to mouth living needs the paper money world and the paper money world knows it. They just increase their check week to week so that inflation is manageable for a time, but not forever. Eventually unemployment skyrockets, the price of some goods and services skyrockets while the value of homes and other long term things plummet. Once hyperinflation starts there is very little that can be done about it that is civil or polite and this increases the need to raise taxes on the properties to maintain the welfare state or the military establishment that is going to be used to 'quell" the masses. Eventually chaos. Folks lose their homes either through taxes or through foreclosure and a dictator arises or a revolution changes everything.

Milton Friedman, when dealing with Icelandic economists back 20 some years ago was told by them that their inflationary economies were sustainable and that their high welfare states that produced their inflationary economies were examples of just how their systems were working well, Milton pointed out to them that because of their homogeneous population that they might very well be able to maintain their standard of living, but that their economies would one day crash in on themselves. Well have you read about Iceland? How about the Soviet Union? Or any other highly socialistic welfare government money state?

Well folks we are them now. An economy can not live forever with no store of value behind its monetary policy. Our founding fathers knew this and established a SILVER and GOLD bi-metal standard for this country.

IT IS THE LAW.

"No state shall make anything but GOLD and SILVER coin a payment of debts". Article 1 Section 2 Clause 10 US CONSTITUTION

Debts in America, like the rest of the world are being MONETIZED. For years they have been taking a hole and turning it into a mountain, but with out filling it with anything. This insanity has led nation after nation for century after century into the same condition : NON-EXISTANCE, and if we do not change the direction we are going America will be next.