In 2012 gold only went up 7% in price. We could only wish all investments could achieve the same return on investment (ROI). Gold is honest money held in order to protect investors from the destruction of paper money. Central Banks continue to destroy value of paper money and now hold $15 Trillion in paper money on the balance sheets. Most of the growth of their balance sheets has occurred since 2007. On the other hand, China continues its plan to acquire gold so that it can create its own reserve currency. This multiyear plan has been consistently importing large quantities of gold. The Western governments have obliged by suppressing the price of gold thus creating a large transfer of wealth to the Eastern Kings.
The U.S. debt now reported to be about $70 Trillion (including unfunded liabilities) has interest payments of approximately $1 Billion per day. If interest rates went up from the current 2% to 5%, a normal rate, in ten years the U.S. Debt would grow from $16 Trillion to $40 Trillion (excluding unfunded liabilities). Interest alone would be over $1 Trillion per year. You can see why compounded interest is the “8th wonder of the world”. This scenario assumes that the U.S. will not add other debt. What are the chances?
The U.S. Government accounts for 40% of the economy and growing. In Europe, the number is 60%. The implementation of the Basel III accord (Banking guidelines) has been postponed until 2019. This means that the banks cannot survive compliance of prudent reserve requirements. Their toxic investments still reside on their balance sheets. Central Banks continue to suppress interest rates so that commercial banks can attempt to generate enough profits to offset the worthless assets being used to prop up their reserve requirements. This transfers wealth from the average person to the banks by way of cheap rates for their money. Massive amounts of wealth are being transferred everywhere!
Which would you rather accumulate: honest money or dishonest money? The Law of equal weights and measures demands honest money. The current system has endorsed dishonest money. Which will Our Heavenly Father back?