In this section

Click HereFacts about Gold

Click HereThe Right to Own Gold

Click HereGold and Currency

Click HereThe Crashing Dollar

Click HereGold's Purchasing Power

Click HereObama & the New Depression

Click HereGold Confiscation

Click HereTrading With The Enemy Act of 1917

Click HereThe 15% Rule

Click HereEminent Domain Clause

Click HereOutlook for Gold

Why Gold?

Crashing Dollar Chart

Dear Frightened American, The graph reproduced here shows a terrifying and seemingly unstoppable trend. In the last 60 years, the U.S. dollar has lost nearly 95% of its value! I'm writing to let you know how this disaster unfolded, why it will inevitably continue, how it will affect you, and most importantly, what you can do to protect yourself.

There is also a correlation between the national debt and the money supply. In 1932 the federal debt was 22 billion dollars. By 1940 it had reached $400 billion. By 1979 it had doubled to $800 billion. The difficulty with a debt that doubles every ten years is that the interest compounds to the point that it can no longer be paid out of the current revenues. Once the interest itself is debt financed, the compounding accellerates. From 1980 when the debt reached 1 trillion dollars, we have exploded ahead to nearly $4.5 trillion just 13 years later. This is partially the effect of runaway compounding of interest on debt.

If we were able to balance the budget now, and interest rates leveled off at 6%, we would have a debt level that reached 9 trillion dollars in just 12 years. Even with a balanced budget we would still borrow the interest on the debt and at a rate of 6% interest, the debt will double every 12 years. With this kind of downward spiral, the United States and its people will either continued growth in money supply or collapse the monetary system as we know it. Which way do you think it will go and how long do you think we have? The "Fed" admits (mid-December, 1995) to 17.6 trillion dollars in interest bearing debt, not counting approximately 20 trillion dollars from derivatives. Add to those numbers the amounts owed to Social Security and the Medicare trusts and the true debt of the Unted States is 40 trillion dollars plus.

How does this affect me?

Dr. Kurt Richebacher, former head of one of Germany's largest banks sees a dollar crisis looming ahead. He says:

"The dollar crisis we envision will lead a flight into gold and other foreign currencies. Capital conservation should be utmost priority. For American investors, there is little else to do other than to continue seeking safe harbor (out of the dollar)."

None of this should be surprising. History shows that currencies generally lose their value within one's lifetime. According to Ludwig von Mises..."Government is the only agency that can take a valuable commodity like paper, slap some ink on it, and make it totally worthless." Dr. Franz Pick said, "We are living in a period of horrible confiscation of people's assets through inflation. The dollar is being destroyed. It is now worth between two and four pennies of its 1940 value." George Bernard Shaw said, "You have a choice between trusting the natural stability of gold and the honesty and intelligence of the members of government. And, with all due respect for these gentlemen, I advise you, as long as the capitalist system lasts, vote for gold."

Former Fed banker and money expert John Exter said:

"I get a kick out of people who talk about smart money. Do you know what smart money is? Smart money is watching as I did - Aristotle Onassis buy 100 tons of gold at $35 dollars and ounce in 1970. That's smart money. His cost was $112.5 million. Today it would be worth $1.5 billion. Unfortunately, he heeded the advice of an economist at the Bank of International Settlements in Basel and sold it in 1973 for $125 an ounce. That wasn't smart money."