Why Gold price are record high, Alex Preston has interesting background article on the new gold bubble and possible burst.
As we stagger through the ruins of the global financial system, surveying the wreckage left by the bursting of the debt bubble, a new bubble is already being inflated -…
‘It has been almost three years since the Federal Reserve took its interest rates to 1% and most recently to zero. This allows member banks to borrow money at no cost. The Fed lends to large banks with little or no control, so that these banks, some of which are owners of the Fed, can really do as they please. The Fed even lends at zero and re-borrows from these banks at a higher level, guaranteeing the banks a riskless profit. Those profits would have gone to the US Treasury and the American taxpayer.
These profits for the most part are the result of the creation of money and credit by the Fed. The banks are so overjoyed regarding the results that the Fed has told them that it will keep the current policy for at least the next two years. The banks as a result are making big speculative profits to offset their gigantic losses, while at the same time the economy falls deeper into inflationary depression. This is the tyranny of our almost 100 year old privately owned banking system. The unbridled use of money and credit has led America into a monetary maze from which there is no easy escape.
This is what happens when the Fed can create money and credit at will with no gold backing to control such issuance. What the Federal Reserve has done is deprive you of a sound money system. In this endeavor the Fed has deprived you of your liberty and freedom by destroying your wealth and savings via the inflation, which has been the guaranteed result of these actions by those who believe they are the masters of the universe.
Once gold backing was removed from the US dollar on August 15, 1971 the old policies were over and the new policies, the results of which we see today, had begun. During the intervening period the price of gold rose from $35.00 an ounce in US dollar terms to its recent $1,900 price. The gain was a reflection of the loss of value of the dollar over those some 40 years. We predicted these results in the early 1960s, but very few were listening. Millions are listening today.
The Federal Reserve, Wall Street and banking have been able to perpetuate what they have because of mass ignorance of our monetary system, even by well-educated citizens. This kind of indifference is what brings about the structure that spells failure for our present system. Americans refuse to reduce spending and expanding credit. They believed that the system could go on endlessly. They are in the process now of finding out that could not be the end result.’
Shout out to:anti-propaganda