In the past day, the price of gold has dropped about 120 an ounce, to under $1500 (now just above $1500).
But the real news is NOT that gold is now at its lowest price in dollars in two years, or has dropped nearly 400 dollars in just 18 months from a high of $1895 in September 2011. The real news for the future, as seen in the table at the URL above, is that in 10 years, the price of gold is five times what it was in 2003.
The chart is the inverse of the final destruction of the American dollar, and with it, the American economy. Something will, MAY, rise from the ashes, but it is obvious that the dollar and the economy is as dead as liberty and the Republic.
We can worry all we want about Islam and Korea and border jumpers, but the truth is, liberty and American society and prosperity are dead, and if we do not recognize that, we will likely join them.
The causes are many, and the death of the Republic and much of our freedom and liberty can be traced back a century and beyond. But the process accelerated in the past ten years. We are not just in decline, but in the final stages of decline. The consequences are and will be severe – and many of us will not survive long enough to see what rises to replace these losses.
The results are staggering. In my childhood, the dollar was already in decline: it had been 30 years before that FDR committed one of the biggest thefts in known history: forcing most Americans to sell their ounces of gold for twenty dollars in silver, and then reducing the value of their silver and paper dollars by 40% or so in one fell swoop: from $20 to $35 per ounce. That one ounce of silver (then worth just 1/35 of an ounce of gold) in 1965 bought 10 10-ounce Cokes or 10 12-ounce Pepsis in a vending machine, and generally 20 of each in a grocery store. Or ten Superman or Spiderman or Archie comic books at the drug store. It also bought four to five gallons of gasoline (including state and federal excise tax). Five-six hundred of them bought a low-end NEW automobile. (That would have been about 14-18 ounces of gold: $500-$600 1965 dollars.)
Today, that same silver dollar (valued in current US dollars at about $28), will actually buy about 12 or 14 of the current 16-ounce Cokes or Pepsi in a vending machine. For 500 of them (2013 $14-$17,000), you can’t FIND a new car, no matter how low end you want. But for 18 ounces of gold ($27,000 in 2013 dollars) you can still probably get a pretty good automobile better than “low-end.” The problem is that salaries and wages haven’t kept up, as the economy has finally crashed and burned under the weight of government.
In 1969, I made $1.10 an hour as a newspaper typesetter and printer. That was 1.1 ounces of silver or 0.03 ounces of gold: today that would be $30.80/hour if paid in silver, $47.14/hour if paid in gold, for a subprofessional, if skilled job. Today, as a licensed and experienced professional, I didn’t even make that wage in gold OR silver. By standards of four decades ago, we are a poor nation. Only the fact that technology and productivity have exploded in that forty years makes it possible to live today.
What can we do? Not much to change the value of the dollar. Or restore gold or silver as real money. What we CAN do is prepare for the point in time when a lot of people wake up to the fact that the dollar and economy are simply corpses that haven’t stopped twitching, and prepare to make it on our own and survive. To that end, don’t waste your time writing to your Congressman or Senator or even your local legislator: buy ammo and guns and seeds and tools that will survive the inevitable collapse of infrastructure and networks of all kinds that follows the collapse of fantasies that still linger on after the collapse of money and economies.
It is time to cut bait or fish – if you want to survive.