Gold Losing Battle vs. U.S. Dollar in 2012
In the past 100 years (i.e. ever since the Federal Reserve was given the responsibility of “protecting the dollar”) the U.S. dollar has lost 98% of its value. That rate of collapse has increased significantly in the past 40 years (i.e. ever since Nixon eliminated the last vestige of a gold standard).
Then there is gold. A hundred years ago, a man could purchase a fine suit for an ounce of gold. Two thousand years ago, stylish Romans could purchase the finest toga for an ounce of gold. And today, despite the fact that gold has been pushed more than 20% below its recent high, one could still buy a more-than-adequate suit for the $1550 currently quoted for an ounce of gold.
Yet for 100 years, as the U.S. dollar has been relentlessly losing virtually all of its value, while gold has virtually perfectly preserved its entire value we have been hearing a consistent message from the mainstream media: the U.S. dollar is a “safe haven”, while gold is a “barbarous relic”.
How can the media tell us that the bankers’ paper, which has already lost almost all of its value is “safe”? How can the media tell us that gold, which perfectly protects the wealth of the holder century after century is “too risky”? The media lies.
As I wrote previously, gold is a perfect vessel for storing one’s wealth (safely), while the U.S. dollar is nothing more than a “leaky bucket”. So when we hear the media maliciously whispering in our ears that we should sell an asset because “it’s losing value”, then obviously the first thing we should be dumping is anything and everything denominated in U.S. dollars. Better late than never!
Of course this is only one reason why the dishonest gold bears urge gold- and silver-holders to dump their precious metals (any time and every time the banking cabal gets some traction with their market-manipulation). Since the price of gold is usually going up, the much more common reason why the mainstream Chicken Little's “warn us” to sell our gold is because it is a “bubble” – precisely what they were clucking only a few months earlier.
As I and many others have explained (again and again), the so-called “record price” for gold a few months ago was anything but. Even using the phony, “official” inflation numbers of the U.S. government, the price of gold would have had to go to roughly $2500/oz just to equal its previous high from 1980.
However, for any people who choose to use real inflation numbers to discount the price of gold (like John Williams of Shadowstats.com), then we calculate that the price of gold would have to rise to over $7000/oz just to equal the 1980 price. Meanwhile, Bloomberg was recently reporting (out of the other side of its mouth) that the gold miners were struggling to remain profitable at current prices. Some “bubble”!
So when readers are subjected to more of the dishonest fear-mongering from the mainstream media that we should sell our gold because it’s “losing value”, as a matter of simple logic we should not begin to sell our first ounce of gold until we have already rid ourselves of our last, dying U.S. dollar.
And when a few months down the road (when bullion prices are again soaring) we hear the mainstream media talking out of the other side of their mouths and telling us to sell our gold because “it’s a bubble”, again our rational strategy is clear. We should not begin to sell our first ounce of gold until we have already rid ourselves of our last U.S. (bubble) bond – assuming that bubble hasn't already collapsed.
