A Barbarous Opportunity

Investor Digest

January 2011 is turning out so far, to be one of the best opportunities to purchase the barbarous relic, gold, in the past year. Yes, it is a much maligned metal. Yes, there are TV ads offering to buy your old jewelry and give you fiat dollars in exchange. Yes, the dollar value of gold has eased back somewhat. In fact, gold may even go down a bit further to the $1250 - $1300 level.

Is gold worth it? It is only a rock after all.

Perhaps financier J.P. Morgan said it best in 1912, "Gold is money. Everything else is credit."

As the Federal Reserve continues to print money and Treasury continues to spend money, increasingly fraud and excess appear rampant.

They are appearing everywhere.

National governments are running huge deficits close to 10% of GDP annually,  states and provinces are running in the red constantly,  Central Banks are printing currency like there is no tomorrow, and taxes are being raised to pay for the bail outs of huge financial institutions because it is supposedly in the public interest.

Now we are once again seeing bonds counterfeited.

Italy confiscates counterfeit bonds

ROME (AP) -- Italian authorities have confiscated $20 billion in counterfeit U.S. government bonds.

Authorities say the bonds were of a quality that theoretically could have defrauded financial institutions

This incident is reminiscent of a larger on two years ago:

Bonds are fakes

(Reuters) - A purported $134 billion in U.S. government bearer bond certificates seized by police near the Italian-Swiss border are fake, the U.S. Treasury said on Friday.

"Based on the photograph we've seen online, they are clearly fake.
And not even good fakes," said Stephen Meyerhardt, a spokesman for the Treasury's Bureau of the Public Debt.

He added that there is only $105 million in Treasury bearer bond securities outstanding, so the $134 billion amount seized far exceeds the universe of outstanding securites.

The Treasury's determination confirmed the suspicions of Italy's Guardia di Finanza, or tax police, who seized the bond documents in early June from two Japanese nationals at the Chiasso rail station in northern Italy, close to the border with Switzerland.

Is it any wonder that with rampant fraud and loose monetary policies, central banks in India and China and Russia are turning to gold?

Wealthy individuals have turned to gold in droves over the past three years.

Now, will the general public realize that policy makers and central banks do not have their best interests at heart, and begin an enormous move to gold themselves, acting as their own central banks?

Or will they trust the rascals that helped create the financial mess until the currency is completely debauched, and an international currency based on SDRs is unleashed on an unsuspecting public?


  1. When you have deposed Heads of State leaving the country with said Country's Gold, everything else is trivial.




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