Read What I See

When the political show is over the debt ceiling will be raised $2.5 trillion with the hope it will last until the 2012 election that is less than 16 months away.  Neither cutting in spending or raising taxes can get the US out of the hole it has dug itself in thus making the conversation a political show for the masses.  With no lenders and the Federal Reserve as the sole lender the price of gold and silver will shoot up again as the dollar continues on its path to $0.00.

From 1833 until 1913 when the Federal Reserve was establish the price of gold pegged to US Dollars remained constant at $18 per ounce.  Before borrowing this $2.5 trillion that likely will be approved, Gold stands today at $1,603 an ounce. Considering that in the year 2,000 it was $279 it is evident that at this rate it will not be long before it reaches $1,800 and beyond.  When Gold reaches this point the US Dollar will have 1/100 of the value it had at the time of the founding of the Federal Reserve.  The effects of this massive injection of cash into the economy since the year 2,000 has done nothing to improve the economy but its disastrous effect will soon become evident as the dollar loses its remaining purchasing power and it is abandoned by the world.  Unfortunately, most Americans are totally unaware as what the consequences of this will be and how it will change their lives and threaten their existence.

Historical Gold Price Chart from 1833-2010