Bye, Bye to American Heritage

By: David_Vaughn

The definition of our American Heritage is simply the handing down from generation to generation a tradition of freedom and self sufficiency.  Of course, as we all know, those days are receding rapidly. 

Lafayette, Valley Forge – “Shall I begin by saying some things you know, but may have forgotten? This world you have cut from the wilderness, is a new world, brighter with sun in summer, colder with winter cold than the world I knew. The air's strange-sharp, the voice rings here with a hard ring. I find no man but looks you in the eye and says his thought in your teeth, and means it.” “This was not known before on this star we inhabit.” “You will find this is not easy to throw away.”

There is a rumor circulating that a bank holiday may be on its way. 

This is the type of holiday where the banks are all closed across the nation and your money becomes temporarily unavailable.  Even your savings box would be off limits.  FDR did this shortly after coming to office.  Anyone paying attention?  Sure, it’s just a rumor, but a very scary rumor with lasting and permanent consequences should it turn out to be true.  We are all too consumed impatiently waiting for the new trillion plus free health insurance program. 

Why a banking holiday?

This act would enable the real insiders to first clear up the chaos that almost every banking institution in the US is struggling through.  In the process the banks would more than likely create new rules that may not be favorable to the typical consumer.  And also, the US dollar probably will be devalued in the process. 

The following is an email from a reader.

Reader email - “Yes, what do we produce in the USA?”  “If industrial jobs don't return to America we are toast.”

Hedge Funds are beginning to purchase gold this year because they are betting this financial crisis will continue and bring inflation.  The institution still holding the greatest number of derivatives and with the greatest exposure continues to be JP Morgan.

MoneyWeek Editor John Stepek Aug 25, 2009”But it's certainly a good reason to have a chunk of your portfolio (about 10% say) in gold.” “…as insurance for when support for the dollar finally collapses.”

Remember the car called a Hummer?  Sales dropped pretty quickly this past year or so.  An American status symbol now bought out and owned by a small and insignificant Chinese company.  Part of bankrupt GMs chopping assets.  Can your family cough up the required 184,000 dollars to pay down our massive US debt?

Well, where is the world heading?  Frankly I believe we are in the last days.  Next year?  A generation from now?  50 years out?  You would have to be crazy and ignorant not to be aware of all the significant cosmological changes in store for our world in the coming years.  Just the possibility of a “polar shift” is enough to get your house in order.  Is your house in order?  Hope so cause times a’ passin!  

”Some US embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of US cash to purchase currencies from those govts, quietly. But not £’s. Inside the State Dept there is a sense of sadness & foreboding that ‘something’ is about to happen, unknown re a date—just that within 180 days, but could be 120-150 days.” .rumormillnews.com/cgi-bin/forum.cgi?noframes;read=149276

No, gold is not the panacea that will cure all the worlds’ ills.  But it could pay for a loaf of bread when the crash comes.  It simply could be a means of exchange needed when the US dollar crashes to the floor.  Do I sound pessimistic?  Just look at the simple political changes we have observed in just the past ten years.  And these changes are beginning to occur more rapidly.  Thank Homeland Security for that.  Anyway, where to from here? 

Michael O'Brien, August 25, 2009 -   “Grassley (Grassley, the ranking member of the Senate Finance Committee)…asserted that Bernanke's ability to hold down inflation would be the metric by which the Fed's success would be measured.” “…that inflation as a result from government spending on bailouts could result in inflation rivaling rates in 1980, when it hit a peak of 13.5 percent.” briefingroom.thehill.com/2009/08/25/senator-warns-of-hyperinflation-rivaling-the-1980s/

Step by step and day by day.  That is the measure of time that will show us which way to turn.  Of course you have to be diligently looking. Well, maybe not the end of the world.  But the world as we know it today will eventually undergo changes that to say the least…will be challenging for humanity. 

Here is a good word that I believe brings a good laugh.  Heard of “reflation?”  Sounds like something to do with putting air in a tire.  “Reflation” is when the economy is stimulated by tremendously increasing the money supply.  New dollars made and circulated in the economy.  Today, reflation is the word given when prices are increasing.  Seems the word “inflation” is no longer politically correct.  Isn’t it neat how things seem to improve by simply changing the meaning of certain words?

Jim Sinclair – “It appears that gold is building a base from which a rally up to $2,500 - $3000 area is very likely. There is even a possible rise to the $5000 level, but that is the most extreme projection. This is suggesting that confidence in the dollar is declining. This is not the classic, "Inflation nonsense, but a collapse in currency value consequence."

When I began writing at the beginning of this century I’ve found that most of my predictions have come spot on.  Now?  What can I predict for the coming decade?  Maybe it can be summed up in the following song lyrics.

Billy Currington - “God is great, beer is good and People Are Crazy”

Beer will probably be provided free by the government to keep the citizenry in a stupor as the country implodes.  And don’t forget we still have the year 2012 staring us in our face.  Well, well, well.  Gold seems finally to have climbed above the psychologically important 1,000 dollar level.  The US dollar is sinking and sinking fast.

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David Vaughn
David4054@charter.net

The future legacy of the United States will be the refined art of financial leverage.

© Copyright 2009, Gold Letter Inc.

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