Republicans Asserting Reliance on Gold as World Loses Faith

As the price of gold hit new highs following the 2008 financial crisis, Republicans saw the yellow metal’s steady ascent as a sign of trouble ahead. To Representative Paul Ryan of Wisconsin, record gold prices in 2010 heralded “a lower standard of living for many Americans.” Representative Ted Poe of Texas foresaw “a blast of inflation that will crush the middle class” adding: “Where gold prices go, other prices follow.” Fellow Texas Representative Ron Paul, a perennial critic of the Federal Reserve, warned that “confidence is being lost in the entire fiat monetary system,” a reference to money created by central banks.

The Republicans’ confidence in gold as an economic and financial barometer proved ill-founded. Five years after the crisis, the dollar’s value measured against the currencies of major U.S. trading partners is little changed. Prices have risen at an annual 1.4 percent rate, less than half the 50-year average and lower than the Fed’s 2 percent target.

By July, gold had slid 36 percent from its September 2011 high of more than $1,900 an ounce, the steepest percentage decline since prices plunged by 58 percent over 21 months ending in June 1982.

Gold and Silver has thousands of years on its side as a way to help keep money stable. The founders of this country knew the dangers of fiat currencies and clearly stated that only Gold and Silver is money. You can create paper money, but it must be backed by Gold/Silver. It is criminal that a man or women is not allowed to save money and have it keep its value throughout their lives. Oh and yeh, the media, including Bloomberg does hate Gold.

The US government is printing $200 million per hour 24x7. I do not see them stopping the press in the next three years. So it would seem a good bet that the dollar weakens.

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