Senate Rejects Fed Amendment; Higher Gold Prices Await

 |  Includes: GLD, SLV
by: Michael Fitzsimmons

Never one to disappoint, the illustrious U.S. Senate once again voted contrary to the best interests of the American people by rejecting an amendment to audit the Federal Reserve. Just like the Bush administration, the Obama administration weighed in heavily against this bill and to maintain the un-Constitutional Federal Reserve shaded in secrecy. The agency will be allowed to continue printing money at will without Congressional oversight, distribute the money to its friends and withhold it from its enemies, and do so at the whims of a very small group of people. This is so very dangerous it simply baffles me any Senator could vote against. But like Ron Paul says - the government could not spend money at will (i.e. get re-elected) or fight oil wars or run up the deficit if it was not for the ability of the Federal Reserve to print un-Constitutional money.

The amendment was championed by Senate Vitter (R-LA) and mirrored similar legislation supported by Constitutional money champion Ron Paul. Notable "Nay" votes were cast by Senator Corker (R-TN) who never misses a chance to appear on CNBC and talk about "freedom" and the evils of deficit spending. Yet given the chance to actually do something constructive about these issues, Corker shows his true colors as a hypocrite. Also voting "Nay" was Vitter's sister Senator from the state of Louisiana Mary Landrieu (D-LA) who should be ashamed of herself for not supporting her colleague.

We should commend supporters of this amendment such as these prominent Senators:

Senator Feingold (D-WI)
Senator DeMint (R-SC)
Senator McCain (R-AZ)
Senator Sessions (R-AL)
Senator Cantwell (D-WA)

among others. How did your Senator vote? Find out here.

What does this have to do with investing? It means a continuation of fiat American currency. It means a continuation of members of Congress to disavow their oaths of office to uphold the Constitution and hard money (based on gold and silver). Therefore, it will lead to devaluation of the U.S. dollar, higher inflation, a currency crisis, and a huge runup in gold prices. It is clear BOTH political parties support the un-Constitutional Federal Reserve. An investor must own gold and silver bullion. When the collapse happens, if history is an indicator of the future, the collapse and loss of confidence will come very quickly and paper assets will become worthless. Gold and a garden is what you need.

This vote is a sad indication of what is ahead for America - a loss of sovereignty, a devaluation of our currency to enable the "new world order" architecture the Ivy Leaguers support, and eventually a one world currency (China and Russia perhaps being the exception). Call your Senator and let them know how you feel about Constitutional money and the corrupt and un-Constitutional Federal Reserve. You future depends on it.

Disclosure: Long gold and silver