Added: Sept. 17, 2008
Added: Sept. 17, 2008
VANCOUVER, B.C. – The U.S. financial crisis has cut so deep – and the government has taken on so much debt in misguided attempts to bail out such companies as Fannie Mae (FNM) and Freddie Mac (FRE) – that even larger financial shocks are still to come, global investing guru Jim Rogers said in an exclusive interview with Money Morning.
Indeed, the U.S. financial debacle is now so ingrained – and a so-called “Super Crash” so likely – that most Americans alive today won’t be around by the time the last of this credit-market mess is finally cleared away – if it ever is, Rogers said.
The international banking cartel during the past month has managed to push the price of gold down to the $850 – $880 level and silver down to the $16 – $17 level. The manipulation of the gold and silver market is incredibly obvious just by looking at daily charts of the gold and silver prices. Quite frequently you’ll see a nose dive in the price of both gold and silver without any sort of rationale behind the price swing. Also consider the fact that the price of oil is around $120 barrel which means that gold is incredibly undervalued relative to the oil price.
Even a 10 to 1 gold to oil ratio is low from a historical perspective and as we speak, gold is well under that ratio. Gold at the $850 – $880 level is a tremendous buying opportunity. The corporate controlled media is telling us that the commodity bull is over and the U.S. Dollar is stabilizing. Therefore it is prudent to do the opposite of what they are advocating. Anyone saying that the U.S. Dollar has stabilized is living in fantasy land. The Federal Reserve recently cut interest rates another 25 basis points and they continue talking about creating more money out of thin air to bailout banks that are on the brink of collapse. The U.S. Dollar is heading further down the toilet unless there is a dramatic reversal in monetary policy and that doesn’t look as if it will happen anytime soon.
(Buying Gold and Silver may save your life, when the economy crashes. But you can’t eat it.
Thats why you have to store lots of food and water as well. – The Infinite Unknown)
Congressman Ron Paul slammed Federal Reserve chairman Ben Bernanke during a House Financial Services Committee meeting today for following a policy of deliberately destroying the dollar and wiping out the American middle class.
Paul held Bernanke to task over his refusal to address the decline of the dollar and its clear link to inflation.
“Inflation comes from the unwise increase in the supply of money credit….to argue that we can continue to debase the currency, which is really the policy of that you’re following, purposely debasing value of currency – which to me seems so destructive….it just puts more pressure on the federal reserve to create capital out of thin air inorder to stimulate the economy and usually that just goes into mal-investment,” said Paul.
“Ron Paul Schools Ben Bernanke Yet Again”
Paul highlighted the fact that the M3 money supply was rising at a rate of 16 per cent and that this was the real rate of inflation.
“History is against you,” Paul told Bernanke, “History is on the side of hard money – if you look at stable prices you have to look at the only historic sound money that’s lasted more than a few years – fiat money always ends, gold is the only thing where you get stable prices,” he added, pointing out that despite the price of oil’s rapid ascent, it had remained flat when compared to the price of gold.
“I cannot see how we can continue to accept the policy of deliberately destroying the value of money as an economic value,” said Paul, adding that the policy was “immoral,” and would lead to a reduction in American’s living standards and “the middle class being wiped out.”
Asked how he could defend a policy of deliberately depreciating the dollar, Bernanke stumbled through his response and was basically forced to agree with Paul’s point. Paul’s comments come on the day that the dollar hit its all time low against the Euro.
Earlier this week, former Fed chairman Alan Greenspan laid the groundwork for the further collapse of the greenback by encouraging Gulf states to abandon their dollar peg.
Watch Paul’s opening statement.
“Ron Paul opening statement to Bernanke at FSC – 2-27-2008”