Ever wondered why there are so many TV commercials for buying and selling gold? If you haven’t heard, world governments are ditching the U.S. dollar and buying gold. Entrepreneurs are acting on suckers unwitting consumers willing to part with their gold for last year’s prices.
Let’s look at the precious metals markets — the only enduring source of trading stability because of the scarce nature of the commodity. While this may sound like G. Gordon Liddy in a gold commercial, just look at the facts.
In the past year, gold has climbed 54 percent to record highs exceeding $1,100 an ounce. In the same period, silver has nearly increased 96 percent in value.
The Democrat-led U.S. government has torpedoed the dollar’s value with reckless spending in stimulus packages, bank and auto bailouts, costly social programs, and so forth.
Inspired by the long-debunked Keynesian economic theories of the 1940s, the Obama administration preaches a promiscuous fiscal policy where government spends, spends, spends taxpayer money in an attempt to resuscitate a lifeless economy.
You can’t spend money you don’t have, but if you’re the government, you just crank up the money printing presses! This source of cash is not the mythical “money tree” or even pennies from heaven. It is a stealthy way to strip away buying power from our paychecks or our life savings. We see it when gas prices go up. We see it when a sack of groceries gets more expensive. We see it when gold prices skyrocket.
The word on the street is that another government stimulus plan is coming that will further tranquilize our economy and tank the dollar. With Americans screaming “Where are the jobs?” now the president wants to do something about it. But as you would expect, Obama is going about it all wrong.
You can’t spend your way to prosperity with other people’s money.