By my best reckoning, we are in the midst of a Dollar Bubble. It is difficult to be inside a bubble and comprehend the magnitude of the problem for everything looks rather calm from the inside looking out. Once the bubble bursts, chaos ensues.
Financial repression has become a way of life here. My parents earned 5% at a minimum on their passbook savings for decades. Now, you must take notable risks to get the same return on your money. My parents’ generation were born in the 1920’s and 30’s when people had virtually nothing. They had one pair of shoes for special occasions and often walked barefooted the rest of the time. Today, our closets are loaded with shoes and we think nothing of it. They were savers, my generation has a pathetic track record of saving. We are a generation known by excess consumption. My generation will expect the government to sustain the quality of life we have grown accustomed to. The baby boomers elected officials who knew how to schmooze us by tickling our ears with promises that can never be fulfilled.
Our economy is based on a lie. When Nixon closed the gold window in 1971, we began the lie. Our currency, once supreme, was now on a road of depreciation. Our manufacturing prowess was second to none. CEO’s figured out how to slide greed into the corporate way of thinking by moving manufacturing out of the U.S. and pumping up profits… and their bonuses. Globalization was promoted and the disparity would soon pull values downward. The era of consumption will end abruptly.
Long-term energy supply will not sustain the current global growth rate even with intermittent slowdowns. People want to travel, stay warm, stay cool, and have nicer houses. It all takes energy. Long-term demand exceeds long-term supply yet the price of oil slides. This is based on manipulation in the futures market. High prices encourage conservation but greed could care less. I wonder who will cut down the last tree?
Banks are run by “felons” who are too important to the system to prosecute. They have effectively been given amnesty for any acts of fraud as they continue to run global bank operations. The banking system is currently in power. Yes, they are too big to fail.
In the past week, the banks have obliged the central planners by attacking the canary in the cage- gold. Why would the focus be on such a small market relative to other sectors of the economy? This is the one sector tied to money, the medium of exchange. They are trying to manipulate the reality that gold reflects value. For centuries, gold has done its job against all odds. Men have tried to replace it with their own creations but it has continued its job as time marches on. This time will be no different. Gold and silver will once again survive man’s attempt to eliminate its function. The canary will survive and alert us that the bubble is on the verge of bursting. When it does, we will need to be grounded in Love. Maybe that is why Our Heavenly Father had a guy with a financial calling to focus on this subject. Hmmm!