The next time you hear someone rail against greedy speculators, tell them you’d rather pay lower prices for goods and services than listen to them whine about something they didn’t know anything about.
Anyone wondering why the recovery went nowhere and will go nowhere need only look at who was advising president Obama and who has his ear now (Christina Romer and Tim Geithner, respectively).
Some critics, such as Ron Paul and Herman Cain, want the United States to return to the gold standard. Others insist that such a move would prove disastrous. But nearly all can agree with Cain on one point: “We’ve got to get back to a dollar is a dollar is a dollar.”
Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.
Last week, Newt Gingrich released his 21st Century Contract with America, composed of 10 specific legislative proposals he would enact if elected President. In the 1994 Congressional campaigns, Republicans not only rode Newt's Contract with America proposals to Republican majorities in Congress. They maintained their House majority for 12 years, after Republicans had only held a House majority for 2 of the previous 74 years.
No investment, whether it be in stocks, bonds, real estate, or lemonade stands, can hold up well if the currency in which it is valued takes a tumble. It always surprises me that most US investors still fail to take currency into account, and in particular their potentially overweight exposure to the US dollar.
It's important to understand the fundamental reasons for owning gold, and those reasons have not changed. The US government embarked on a decades-long spending spree of historic proportions. To finance the resulting debt, the Federal Reserve is printing money furiously.
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