They're Doing the Right Thing (for Now…)

Make no mistake; I don’t normally advocate government intervention.

But these aren’t normal times. Without government intervention, the house of credit and leverage would have (completely) tumbled down……resulting in massive bankruptcies and a total collapse of the banking system and the global economy.

Thanks to their intervention (however misguided at times) I believe we’ll avoid another Great Depression.

But the Feds’ track record is far from perfect.

How will their next round of bailouts distort the market? What effect will their actions have on your portfolio?

In all honesty, it’s hard to tell. We can’t see what goes on behind the walls of the Federal Reserve or the Treasury. (Not even Congress has that privilege.)

But one thing’s for sure… Whether they succeed or fail, the supply of dollars in circulation will INCREASE.

And not just by a smidgen. We’re talking trillions of dollars - and that’s just this spring!

Just take a look at this chart from the St. Louis Fed office:

See that vertical jump on the right? That’s what scares me. The Fed is currently expanding the money supply at a 300% annual rate.

This kind of rapid money printing cannot go unchecked for very long.

In fact, it’s the direct cause of financial woes dating back to the Roman Empire. As you can see in this chart, recent history is littered with examples of currencies that “imploded” thanks to run-amuck central banking.

Even the mighty Swiss franc - a pillar of “fiat money strength” has seen its value slip versus the world’s most stable currency.

In case you haven’t guessed, I’m talking about gold. When you line up the “yellow metal” with every other major currency - it’s not even close. And for good reason. You see, gold is the only asset that is completely outside of the credit system, and the only asset that has no liability.

Odds are you own some mining company shares…a few ETFs…perhaps some digital gold or bullion bars. They were some of the smartest investments of the last decade - outperforming the DOW by a factor of 10!

Very few people know this - but one specific form of gold did EVEN BETTER. A friend brought this to my attention last year. I thought he was crazy when he first told me.

But if there’s one thing I hate……it’s a closed-mind person who writes things off too early. So I gave in, did a little research, placed a few phone calls, and it just kind of snowballed from there!

So for the past three months (or so) I’ve been poring over old charts, newspaper clippings, 70 and 80-year-old documents, even government data bases - just to “”dig up”" the dirt on this mysterious form of gold.

And after all my research, here’s what I discovered. And while I hate admitting this (it’s true), I was wrong!

During the Great Depression, while almost every investment tanked……stocks by 89%… real estate by 30%…municipal bonds beyond keeping track of - one specific form of gold soared by 69% literally overnight.

Here are a few more details (I didn’t know):

  • In the early 1970s, when America’s national debt ballooned by US$57 billion… this “”half-forgotten”" currency ballooned too, rising 80%.
  • When Washington piled another US$162 billion onto our deficit (through the mid-1970s) - it again headed higher, hitting gains of over 100%.
  • In the late 1980s, it happened again, when the government went a whopping US$527 billion into the red - those lucky enough to be holding this investment saw a nice little rally of 33%.
  • And between 1998 and 2006 when the Feds boosted America’s debt by US$3 trillion dollars - well, you get the picture, this “”little guy”" again doubled in value!

But here’s the important part - all the same indicators that led to the profit-episodes above - are now in alignment again.

This Thursday, my executive editor, Justin Ford and I will host a special FREE video to tell you how to play these explosive new developments with the one metals investment that lets you save US$600 an ounce off the price of gold.  I invite you to join us.

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