Gold Is Money

By Dr. Russell McDougal

The US dollar has been the world’s foremost money imposter since 1971. Nixon closed the international ‘gold window’ at that time. Thirty seven years of global paper money has brought us to the present crisis. Is there still a place for gold?

Every trick in the book has been used to “demonetize” gold (and silver) over the recent decades.

1. A mountain of derivatives is used to squelch their rising prices (http://www.investorsdailyedge.com/archive/html/01-30-08-Wed-IDEweb.html). 
2. Central banks across the globe collusively dump their gold to make paper money look like something other than TP (http://news.goldseek.com/GoldSeek/1177686060.php).
3. The elitist insiders behind the COMEX commodity exchange regularly whip the precious metals in their desired direction. (http://www.gold-eagle.com/editorials_05/mcdougal011905.html).
4. The US Exchange Stabilization Fund is a slush fund used to manipulate markets including precious metals (http://www.usagold.com/gildedopinion/turkesfgold.html).
5. The International Monetary Fund (IMF) is now seeking to unload gold (http://www.hemscott.com/news/latest-news/item.do?newsId=60917668739034).
6. Fort Knox is empty (10-3-07, 10-10-07, 10-17-07, 10-24-07, 10-31-07 & 11-7-07).

That’s just for starters. Every conceivable shenanigan is regularly thrown at the “monetary metals”. What has been the end result this decade? Here’s a chart of recent gold action from my friends at CRIMEX (NY futures market):

That looks like a spectacular failure for the forces aligned against honest money. Gold rose 31% against the dollar in 2007 alone. Here’s a ten year chart of the heavily suppressed silver market:

Quite obviously, the monetary metals are thriving in spite of all the obstacles thrown in their path. The tricks appear more and more desperate and humorous as each year passes. Weak hands continue to fall for them but they are largely laughable to those who understand the game.

My wife has long expressed her concern about my participation in a heavily targeted market. I don’t blame her but a guy has to do what a guy has to do.

Interventions against market fundamentals always fail in the long run! I have long believed that statement and that’s what has kept me in this wild and wooly market for some 15 years now.

The day to day and month to month raids on the precious metals are nothing but noise for those with a longer term perspective. Commodities are subject to regular spankings. Maybe I got used to those rites of passage as a kid?

Gold would be under $250 and silver under $5 if the feds had real and lasting authority over them. You’ll have to trust me on that one.

You just know gold and silver are real money or they wouldn’t receive all this official attention (http://www.lewrockwell.com/paul/paul445.html). Silver could have been demonetized pretty easily but the dumb arses decided to include it alongside big sister, gold. They made silver money, once again, by targeting it. This works for me as well as innumerable global citizens.

The US represents only five percent of the earth’s population. Our decree of what is and what isn’t money, no longer holds total sway. Monetary metals as well as commodities in general are a world wide phenomenon!

Most unfortunately, our greedy and power hungry elitist masters abused the privilege of issuing the world’s reserve currency. The dollar’s reign is ending.

Global citizens, institutions and countries are returning to historical forms of money. That’s what you see in the above gold and silver charts.

The fiat bubble is popping. Gold is money and it always gets the job done.

Invest Resourcefully,

Rusty

P.S. To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com.

[Ed. Note: Dr. Russell McDougal has dedicated years of study and investing in the natural resources exploration sector. During that time he has closed out DOZENS of gains of 500%... 1,000%... 2,000% and more! Currently he is sitting on multiple thousand percent winners, including one stock that is up a whopping +5,000%. And for a select group of investors, Rusty has agreed to share his secrets of success... and his top stock recommendations. Click here to learn more... ]

Market Watch

Can the Fed Save Us From a Recession?

By Charles Delvalle

Every recession we’ve had in the last 95 years was due, at least in part, to the Federal Reserve.

The explanation is simple really. The economy is far too complex and dynamic for the Fed to accurately project where it will be a few years from now.

And to make matters worse their most effective tool for controlling the economy – interest rate adjustments - can take six to eighteen months to work their way through the economy. In other words, the only way the Federal Reserve can save the economy from a recession is to know it is coming at least six to eighteen months in advance.

Even with the tools the Fed has, this is virtually impossible. And it’s the main reason why they’re so late responding to the economic cycle. Here’s a quick scenario:

If the Fed thinks the economy is growing too fast, they’ll keep interest rates high. The longer they keep rates high, the more the economy slows down. In fact, the Fed usually won’t lower rates until they see signs of an economic downturn. By the time they see these reports, the recession is almost completely underway and the Feds first interest rate cut won’t be felt for another six to eighteen months!

The best way to think about how the Fed can help us in an economic downturn is like this: They try to make sure recessions don’t turn into depressions.

So don’t get lured into making bullish bets because you think the Fed can save us from a recession. They just don’t have the power to do that.

Good trading,

Charles

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