By: Bosko Kacarevic
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There has been much debate in economic circles around the world on the "Gold Standard" and whether or not it's a sound method to base an economy on. Regardless, there is no question that, as a measure of wealth, Gold has outlasted every single currency and government that has ever existed throughout history. Gold has actually been used as a form of money for about 5000 years, there is no other financial product that can even come close to this fact.
However the issue we would like to discuss is, should individual families have their own Gold Standard, regardless of the nations currency structure. We believe that proper diversification includes Gold and it's "common sense" for every family to have a physical Gold reserve as insurance against a government or currency gone bad. As the former head of the Federal Reserve once said:
"Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as the protector of property rights."
However the issue we would like to discuss is, should individual families have their own Gold Standard, regardless of the nations currency structure. We believe that proper diversification includes Gold and it's "common sense" for every family to have a physical Gold reserve as insurance against a government or currency gone bad. As the former head of the Federal Reserve once said:
"Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as the protector of property rights."
Alan Greenspan
Now keep in mind that Mr. Greenspan said this before he became the FED chairman and that over the past fifty years or so, America's economic policies have been based on the theories of John Maynard Keynes and supported by the famous economist Milton Friedman. So let's try to put all the "smoke and mirrors" aside and get to the REAL fundamentals. Watch the video below of Milton Friedman and pay close attention to his remarks on DEFICIT SPENDING. Then watch former president Richard Nixon as he closes the Gold window on the U.S. dollar, and we all know the legacy Nixon left behind.
MILTON FRIEDMAN
RICHARD NIXON 1971Now keep in mind that Mr. Greenspan said this before he became the FED chairman and that over the past fifty years or so, America's economic policies have been based on the theories of John Maynard Keynes and supported by the famous economist Milton Friedman. So let's try to put all the "smoke and mirrors" aside and get to the REAL fundamentals. Watch the video below of Milton Friedman and pay close attention to his remarks on DEFICIT SPENDING. Then watch former president Richard Nixon as he closes the Gold window on the U.S. dollar, and we all know the legacy Nixon left behind.
MILTON FRIEDMAN
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Here is a 200 year chart of the U.S. Consumer Price Index (CPI), and this does NOT include food and energy. Notice what happens around 1971?
Now ask yourself:
- What was the price of bread 40 years ago?
- Didn't the U.S. dollar lose significant value since Nixon's decision to close the Gold window?
- If Gold has been a measure of wealth for thousands of years and America was founded on a Gold Standard then there is a good reason for the Federal Reserve along with other central banks to have Gold in reserve, is there not?
- Is Gold the only real insurance against the loss of confidence in a government and its financial system?
YOU DECIDE!
And don't forget the old saying:
"He who has the Gold, makes the rules."
