Precious Metal Investors, Prepare for LIFT OFF!!!
The U.S. “Ponzi scheme” is nearing its end! While the world and media focus on Greece, FutureMoneyTrends.com is watching the U.S. closely, the ability to issue treasuries in order to pay for the interest payments on existing debt is about to turn this gold bull market into a gold buying mania. However, unlike the bubble manias we have seen in the past, the next phase of the gold bull market is to see the floodgates open as buyers rush out of fiat currencies and into precious metals. Instead of seeing bubble buyers seeking profit, we will see gold restored as money in the minds of millions of individuals seeking protection. As noted in many of our previous articles, major nations and central banks are already big buyers of gold, soon western citizens will be too.
The global fiat currency experiment is proving to be a disaster, never has the world used fiat currencies as the global medium of exchange except for the past 40 years.
Yesterday, with debt worries in both the U.S. and Europe, gold saw its biggest one day gain for 2011. The long term inherit weakness in the fiat currencies is already recognized in Asia and is starting to be acknowledged by western investors & savers as well.
One thing all FutureMoneyTrends.com members should note is the positive reaction we are seeing in the gold price when the headline news is just debt worries. FutureMoneyTrends.com believes that we have barely scratched the surface of the crisis and that during this decade we will see national, state, and local governments default here in the U.S. and abroad. So, if you think debt worries have caused a gold spike, wait until you see an actual default headline.
Both gold and silver have been reacting positively throughout this entire sovereign debt crisis, FutureMoneyTrends.com does not believe that we will see a 2008 repeat for gold since the current crisis is about the fate of the currencies themselves. Silver, if you recall in 2008, saw a pull back of over 50% since the focus of investors was on the slowing economy. Silver in recent decades has been viewed more and more as an industrial metal, however, with gold at $1,530, many investors are looking to silver as a hedge against the devaluing fiat currencies. FutureMoneyTrends.com believes that sometime this decade the world will experience a full blown silver shortage, we made an overwhelming case for this shortage in our ‘Silver This Decade’ video which has received over 280,000 views. Shortly after its release, we even received a special phone call from David Morgan of Silver-Investor.com regarding how happy he was to see such a video put together in order to help educate investors.
The currency war continues with Brazil ready to take new actions in order to reverse its currency appreciation. Yes, that’s right we said currency appreciation. Today’s fiat currency war is about who gets to have the weakest currency, not the strongest. In the world of fiat, with slow economies, the winner of a fiat currency war is whoever has the weakest currency in order to try and revive their economy with exports and cheap money in the system. Brazil warned investors that they have new measures to take in order to stem the upward pressure on their currency the “real.” The Brazilian currency has been close to a 12-year high against the dollar in recent weeks, which means in the fiat world that Tim Geithner and Ben Bernanke are kicking a**. The dilemma for Brazil, China,Chile, Colombia, Russia, and other emerging markets is that if they allow their currencies to get too strong, it undermines their competitiveness in the global export market. However, if they allow their currencies to get too weak, it could possibly overheat their booming economies. The currency war we are seeing right now is one of the major reasons why the dollar index is still at 75 today.
All the currencies are falling together, which has the effect of actually making the dollar look stable for those using the dollar index as a measure.
The fact is the world has gone on long enough without having a real medium of exchange, seeing nations and central banks fighting over who has the weakest currency is really just a sign of the times (the fiat end is near). Your average citizen who works and saves in fiat currency has literally been put on a wealth preservation treadmill, they can save all they want, but the fact is their wealth isn’t going anywhere. This is why the government has thought of all kinds of different schemes for Americans to feel better about their savings. Oh how happy everyone is that we all have FDIC insurance to protect us from nominal losses, meanwhile the actual value of our savings is being decimated.
The fiat currency system has created a debt-slave society and we encourage all of our members to not only opt-out of it, but to prepare for its END!