Saturday, June 28, 2008

Wealth Confiscation Through Inflation

I am sure most of us have heard this phrase, and marveled at it's meaning, then felt depressed , and eventually went on with your life trying not to think about it. I found a fantastic website last night which goes over, in much better detail than I could ever provide, the whole story of the Federal Reserve, before and after, indicating who were the major players, why and how the Federal Reserve Act (originally the Aldrich Act) came to be. Click here to read the full story.
Once you get to the bottom of it you will realize that wealth confiscation is on going in this country in the most stealthy way. The Dollar bill has lost 95% of it's value since the creation of the FED and it keeps going lower faster. There is only one possible outcome for a FIAT money system in the long run, and that is total devaluation(1 Dollar bill= 0 anything).
How do you protect yourself from it? There isn't much you can do. Conventional wisdom would tell you to buy gold and silver bullions, the problem with that is that the central banks of Europe are selling gold certificates to each other to keep the price of gold down artificially (inflation adjusted gold should be about $2,500 an once right now). Silver might be a better option as the supply of silver is vast and difficult to corner or manipulate. The best solution I can think of, in this day and age, would be to buy oil, but you might want to wait for a large pullback or correction. While prices can easily be manipulated, the finite reserve and the exponentially growing demand from China and India is guaranteeing prices to keep going up over the next 30 years, and 30 years is about the time it would take to find an alternative energy source IF we start investing heavily in those technologies now.

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