By Greg Hunter’s http://www.usawatchdog.com/
The Federal Reserve held its first press conference in its 97 year history last week. In my mind, it did this because it recognizes the deep financial trouble the U.S. is in. It wants to put a positive spin on the mess it largely created and/or allowed to happen. After all, it was Tim Geithner who was the head of the New York Fed during the go-go years of the mid 2000’s. He was supposed to regulate the big Wall Street banks. You see how well that worked out—the entire system melted down and Geithner got a promotion to Treasury Secretary.
I’ll give my interpretation of a few of the important points the Fed was trying to get out to the public. Overall, the Fed wants people to keep their confidence in a system where money is loaned into existence. Yes, that’s right. Every time you swipe your credit card, you are not borrowing money but creating it. The banks love this because there is virtually no cost to them, and you have to pay back the money with interest just for the privilege of going into debt. Can you see why the Fed wants to keep this confidence game going? LINK...
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"The rise in Gold is NOT about the rise in Gold, rather the loss of confidence in the USD as the world's reserve currency."
True value cannot be measured in one currency alone. It must be compared to other things, like food, energy, foreign currencies, precious metals, equities and commodities. Historically GOLD maintains it's VALUE because it's rare and indestructible and cannot just be "created" like fiat currencies and credit. Gold has all the fundamental qualities of a stable means of exchange. This cannot be denied. Is a gold standard the best way to run an economy? History has proven NOT to be the case, however gold is necessary as a true measure of wealth and a protector of purchasing power. BK
