
By Craig R. Smith, CEO SATC
Nov 9, 2006
Welcome to the next stage of the dis-uniting of the United States.
While Republicans are licking their wounds and Democrats are popping
their corks, a disturbing trend has been exposed: the accelerating
abandonment of America's fundamental and core values.
In hot pursuit of "a new direction" Americans have made their choice
to spank the Republican party and give Democrats a chance. Anti-Bush-
Republican sentiment swelled this fall fueled by; disappointment over
ethics, progress in the war in Iraq, a government spending spree, debt
and deficit explosion and the loss of U.S. jobs to foreigners.
Dennis continues, "The level of global crisis, created by the collapse of
Western values demands a strategic clarity that the current left-right
game is incapable of offering."
What's coming next? Political gridlock? A radical move toward political
centrism? Or an entirely new agenda that transcends left-right politics?
Time will tell.
USA Today reports, "Democrats' stunning electoral gains will broaden the economic agenda beyond President Bush's focus on tax cuts to more populist debates over income inequality, globalization, budget deficits and health care coverage, among other issues."
American's clearly want sweeping change, but at what cost? In a world of
changing value systems, what can we count on to hold it's value in the
financial world?
Welcome to the next stage of the global bull market in precious metals.
Gold and silver coins, the famous 'old world' currency are fast becoming
the 'new world' currency because they offer the missing link in all paper
currencies: a store of value.
The Wall Street Journal recently published an excellent commentary,
"IN GOLD WE TRUST" by Mr. David Ranson and Ms. Russell of H. C.
Wainwright & Co. They explain why gold prices are the truest barometer
of falling public confidence and growing inflation. Here's a few key
points Mr. Ranson and Ms. Russell bring to light;
* Gold is the benchmark for the value of the dollar -- not the other way around.
Bottom line: The value of U.S. dollar is slowly but steadily sliding into oblivion,
following the path of America's moral and political decline. The sweeping winds of
political change will have little positive effect on the markets, but a further
dollar decline seems unavoidable.
"The dollar is still the world's reserve currency, even though it hasn't deserved
this status for a long time. The devaluation of the dollar can't be stopped --
it can only be deferred. The result could be a world economic crisis," writes
Spiegel, a leading German news magazine.
Don't buy into political or economic illusions. Instead buy reality, which is
reflected in the growth of precious metal prices -- which have more than doubled
since 2001.
A simple solution is to convert a portion of your "paper" or confidence-based
assets to into gold -- the only asset that's not someone elses' liability --
thus putting yourself on a personal gold standard.
Avoid the fallout from bursting political/economic/debt bubbles.
Most Wall Street pundits still view gold as just another commodity, yet central
banks and large hedge funds have been buying gold for the first time in decades.
Gold is a true barometer of public confidence in leadership and in paper
currencies. The mercury is rising in the golden barometer today because
we have become one nation under debt.
Today Americans are facing a pile of unpaid debts. At the helm is a new
Fed chief whose already been nick-named "Helicopter Ben" based on admitting
he'd print enough paper currency and distribute it from helicopters if
he needed to keep the U.S. economy from sliding into a recession.
On the top of the debt pyramid stands a mysterious "derivatives" bubble. Experts
estimate this market is cresting $300 TRILLION -- six times the GDP of the whole
world combined! You could say it's a bubble larger than the old globe itself,
which is bound to pop. (More on derivatives time bomb).
Don’t wait to buy gold, buy gold and wait! I suggest reading more about the next phase
of the gold bull market.
P.S. Here's a few dozen analysts who also see $1,000 plus gold coming soon.
"We may be seeing one of the last gasps of the left-right, liberal-conservative game that has under-girded the American political scene
for nearly the last one hundred years," writes strategist Dennis
Peacocke.
* The falling U.S. dollar is largely being ignored by Washington and Wall Street.
* Gold's sharp rise represents an equally sharp decline in the confidence of investors.
* Gold is the barometer of public confidence in fiat (paper) money.
* The dollar's collapse of 60% since 2001 is a body blow to capitalism.
As CEO of Swiss America I feel compelled to warn readers that rising gold
prices today are a flashing signal of trouble ahead. The only way to protect
ourselves from a falling dollar and rising cost of living is to own some gold.
DISCLAIMER: All of the provided information is believed to be accurate, however errors are possible. The opinions in the Commentary section do not necessarily reflect the opinions of Swiss America. Past performance of any investment is no guarantee of future performance. All investments have risk.