Born in Chicago Cook County in 1948. Moved to Florida in 58. Construction worker most of life. Tried to teach third grade but realized I did not believe in what was being pushed as truth in 1971. I did take a class in 1966 (economics 101) and stood up in class on third class meeting and asked the teacher if she was a prophet and that she really thought Gold would always be $37.50 an oz, and that the United States would never have another recession. Dropped the class that day which made me qualify for the draft which is another story that will not be included here. Am now retired Operating Engineer Local #3 with fixed income and payed for house on Maui and a little savings. Have been against the Progressive income tax for next to forty years and strongly suggest folks get familiar with fairtax.org. First heard of Sorros from a Jewish lawyer in New York over twenty years ago who asked me if I believed Sorros was the antichrist. It was told me at that time that he had made the claim that he was indeed the same. He is still in the running. In the recent election both Obama and Hillary made the claim that they were progressives. If you do not know what a progressive is then you do not understand United States politics. Progressives make up the majority of both the republican and democratic parties. The ultimate goal of the progressives are to institute a one party system that is diametrically opposed to the original republic that was formed by G, Washington and friends. It is the stated intent of progressive to take down out current form of government and replace it. I believe that they are in their final push. Bob Schlumberger - Since the above has been written the Maui home has been sold and I have moved back to Florida and bought a home in Cape Coral. Here I am not part of the minority and the people are far more friendlier. Cape Coral has recently made some list as a good place to be.
The Chinese already got rid of their US dollars and US bonds by getting loans and credit lines from American and European banks collateralized against US bonds (thus US dollars). That's how the Chinese HID the fact that they already spent the dollars they have so as not to crash the dollar's exchange value before they got rid of them all.
The Chinese are buying natural resources and profitable Companies throughout the world. They will announce the effective extinction of their dollar reserves once they're done shopping with the last of their (borrowed) US dollars and crash the US dollar(s that they own outright) in the process while revaluing the Chinese Yuan 200-300% in one fell swoop and thus greatly enhance their purchasing power instantaneously.
(The US bonds that the Chinese now hold on paper are mere instruments of financial mass destruction to be used at the most opportune moment. Do you really think that the Chinese are that STUPID and did nothing to protect themselves when we are screaming in their faces 'til we ourselves are blue in the face that we are going to INFLATE the dollar into oblivion and repay our debt to the Chinese with electronic digits that are worth NOTHING?)
On that day (which will be in early 2012 but possibly before that), your wealth will disappear if it was still denominated in US dollars.
Why do you think the Fed lowered US interest rates to practically ZERO? On the face of it, such interest rate policies are counterproductive for (1) they scream market manipulation and economic irresponsibility and (2) they reek of irrationality, for any viable business can generate 5-20% return on capital and thus is perfectly capable of absorbing 2-3% interest rates as the cost of doing business. The REAL reason for the Fed's zero interest rate policy is the Chinese. The Chinese DEMANDED and obtained zero interest rates, for they are not interested in holding depreciating US bonds which only represent the "faith and credit" of a bankrupt people who reneged on their own contractual and legal obligations -- including the US Constitution. The Chinese acquiesce to playing the monetary musical chairs game as long as America (the Fed) gives them dollar credits that they can freely spend, collateralized against the US Bonds that the Chinese own. This way, everyone gets to have their cake and eat it too -- for a little while longer at least. The Chinese get to spend their dollar-denominated reserves without crashing the dollar's value and the Americans can pretend that foreign investors are willing to invest in US debt because the dollar is as good as gold...
The US dollar is a PLAGUE and pure FRAUD.
FRAUD=NOT a good investment.
Leave the sinking ship behind! Save yourselves from USA Titanic by jumping into the economic lifeboat known as GOLD (and SILVER)!
What a disingenuous article.
Gold is a flat line between 1900-1972 because the currency was, by law, fixed to it.
So lets use your math and go back and recalibrate our answer.
Gold rose from $35 to ..hmm.. current prices.. we'll call it $1350 to close the year out in 38 years. Or an increase of 3857% ... Meanwhile the DJIA was 900 in 1972 ... and is about 11500 now. Or an increase of 1277%
My simple math tells me that the Dow hasn't kept pace with the price of gold over the entire course of US history where we've had a fiat currency.
I'm sorry.. you were saying something? You're either wholly disingenuous, in which case this article is malicious. Or you're a moron, in which case please. PLEASE keep selling gold. We need you on the other side of this trade."