The Austin Report

News - Gold Prices - Silver Prices - Opinions

March 07, 2021
  • 📈 Live Gold Silver Price Charts
  • Gold Bullion Investments
  • Buy Gold, Buy Cheap, Buy Now
  • How to Sell Coins, We Buy Coins
  • Home
  • Categories
    • Boom and Bust
    • Covid19 Pandemic
    • Inflation
    • Stock Market Bubble
    • My Diary
    • Silver Investing
    • Platinum
    • U.S. Debt Bomb
    • U.S. Dollar Decline
  • Gold Prices
    • Gold Price Charts
    • Historical Gold Prices 2000–2020
    • A Time for Gold…Again
  • Debt Matters
  • Gold Articles
    • Banks Hoard Another 1,300 Tons of Gold
    • Reasons to Buy Gold Now
    • 56 Gold Forecasts $3,000 to $20,000
    • Why Buy Gold
    • Scams, Nasty Gold Scams
  • Silver News
    • Silver Investors ETPs Surpass One Billion Ounces
    • Silver Coin Highlights the Simpsons
    • Silver Updates
  • Stock Bubble?
    • Dow Stocks vs Gold vs Dollar Chart
  • Gold Investing

Gold Is Inflation-Proof Money

Covid19 Pandemic, Gold Investing, Inflation | November 7, 2020
Gold Is Inflation-Proof Money

Let’s talk about money greenbacks, bucks, Benjamin’s, C-notes—they’re all slang for the U.S. Dollar. Here’s a shocker for many readers, what we call money today won’t be money forever. In fact, every paper currency ever printed has failed— when given enough time.

Our Founding Fathers understood this. They created Article I, Section 10 of the U.S. Constitution which explicitly forbids the states from issuing “bills of credit” (promissory notes) or making anything but gold and silver coin “legal tender”.

Last time I checked, there were no $20 Gold coins of $1 Silver Dollars in circulation. Today, a U.S. Dollar bill is really nothing but a piece of fancy printed paper with some anti-counterfeiting threads inside. How do we know it’s money? It doesn’t say it’s a U.S. Dollar anywhere. In fact it says it’s a FEDERAL RESERVE NOTE.

The Feds IOU Replaced Money Long Ago

This paper bill we call money today is really an IOU from the Federal Reserve! Yes, it’s money we can spend. It works today, but it has no guaranteed future value— not if we print them up by the trillions.

In order for money to function well as a medium of exchange, it needs certain characteristics:

  • Scarcity establishes money’s value.
  • Easily recognized and acceptable.
  • Can’t be easily copied or counterfeighted.
  • It must be portable and transferable.
  • Good money must be divisible.
  • Stabile money acts as a store of value over long periods of time.

Real money is, among many other things, a commodity. The more of anything you have, the less valuable it becomes. Check this graph of extremely rapid money supply growth. It forecasts how much less our money will be worth in the future.

Never Let A Good Crisis Go To Waste

In any crisis, Washington sees opportunity— the opportunity to spend more and more of the people’s money. Seems like they’ve made the decision, “We’ll worry about destroying the U.S. Dollar later, we must fix the COVID Pandemic crisis today.”

The recent explosion of the M2 Money Supply due to the Covid Pandemic crisis excuses politicians for spending massive quantities of new fake money. It’s free money to the government without raising taxes. What no one wants to admit is the vast influx of fake money virtually guarantees the U.S. Dollar will be worth less and less and less over time.

Americans Lose Buying Power

To replace the economy that was closed down for the Coronavirus Pandemic, the Federal Reserve injected a whopping $6 Trillion Dollars into the monetary system. And there’s more fake money to come!

On top of that, Fed officials have promised to hold interest rates near zero. Does this risk future inflation— or guarantee inflation?

 

The Government Always Counts on Inflation

Inflation is not new, it’s always been a part of government moving from Gold to paper money. Even though inflation has been officially declared to be low, even modest inflation destroys personal wealth over time.

This interesting chart is a simple expression of how much less a $100 bill buys over a long period of time.

“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” Milton Friedman stated the facts succinctly.

Inflation is an intentional government action which uses newly created money to pay for its spending plans. Inflation is always a hidden tax on everyone. The middle class and lower income groups are hurt worse by inflation.

Warning— Danger Dead Ahead for the Dollar

No nation in history has ever attempted to produce so much inflation in so short a period of time. We believe the Federal Reserve will be successful. They will produce inflation— lots of inflation. Then, they won’t be able to control inflation, the same problem they had in the 1970s-80s.

I wish it wasn’t so, but…

It’s most likely that the Federal Reserve will create another Trillion Dollars or two before the pandemic ends. Congress will find a way to spread the helicopter money across their friends, lobbyists, donors, drug companies, et al. Some newly printed money will inevitably find its way down to the unemployed and victims of the Corona Virus shutdowns.

However bad the Covid virus crisis may be, this is not the way to manage a country. This is not the way to abuse the U.S. Dollar our trading partners depend upon. Inflation is not the way to force a hidden tax on Americans.

Inflation is imminent, be prepared. Buy Gold, buy Silver, buy soon.

Greatest Inflation Quotes Ever

We end this article by sharing some thoughts on inflation from the best minds in financial history.

“The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy.” ~ Ludwig von Mises

“Inflation is not caused by the actions of private citizens, but by the government: by an artificial expansion of the money supply required to support deficit spending. No private embezzlers or bank robbers in history have ever plundered people’s savings on a scale comparable to the plunder perpetrated by the fiscal policies of statist governments.” ~ Ayn Rand

“Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel. These once unthinkable dosages will almost certainly bring on unwelcome after-effects. Their precise nature is anyone’s guess, though one likely consequence is an onslaught of inflation.” ~ Warren Buffett

We’re a nation living on borrowed money and borrowed time. Only Gold is inflation-proof money. Please prepare your finances accordingly.

Related

Previous
COVID Rise + Election Results = Buy Gold
Next
Gold Gains 25% Before COVID Wave 2

Related Posts

  • U.S. Covid Deaths 500,000

    U.S. Covid Deaths 500,000

  • Biden’s $1.9 Trillion Stimulus Could Smash the Dollar

    Biden’s $1.9 Trillion Stimulus Could Smash the Dollar

  • Yes Virginia, There Is A Santa Claus… in the White House

    Yes Virginia, There Is A Santa Claus… in the White House

  • Good News About Covid-19

Recent Posts

  • 1822 Capped Bust $5 Gold To Sell for Millions
  • U.S. Covid Deaths 500,000
  • U.S.A. BUSTED, BROKE, BORROWED TO THE HILT
  • All-Time High Buffett Indicator Says— Stocks Too Expensive!
  • Biden’s $1.9 Trillion Stimulus Could Smash the Dollar
  • Green Energy Problems & Frozen Texans
  • Only Months Away from $50 Silver
  • Yes Virginia, There Is A Santa Claus… in the White House
  • Good News About Covid-19
  • Yep… It’s a Stock Market Bubble
  • Inflation Confirmation
  • Silver Up 49% in 13 Months

Categories

  • Boom and Bust
  • Covid19 Pandemic
  • Energy
  • Gold Investing
  • Inflation
  • My Diary
  • Negative Interest Rates
  • Palladium
  • Platinum
  • Rare Coins
  • Silver Investing
  • Stock Market Bubble
  • U.S. Debt Bomb
  • U.S. Dollar Decline

Buying or Selling? We Recommend:

  • Roxanne Byrd Austin Advisor
  • Austin Rare Coins, Inc.
  • 1-800-549-2392
  • Roxanne@AustinCoins.com

Tag Cloud

Gold Investing Covid19 Pandemic Stock Market Bubble Silver Investing U.S. Debt Bomb My Diary Inflation Boom and Bust U.S. Dollar Decline Negative Interest Rates Platinum Rare Coins Energy Palladium
© 2020 ByrdPro, Inc.