Fiat Money to Meet its End

In Richard Russell’s latest commentary, the Godfather of newsletter writers discusses bear markets, gold, silver and fiat money. Russell is always focused on the big picture. This time he highlights the biggest fraud of the last half a century and how it will end. Here are a few snippets from his latest commentary...

August 30, 2010

Richard Russell:


Bear markets exist for the purpose of exposing and eliminating the greed, the corruption and the fraud that thrived in the preceding primary bull market.


To my mind, the biggest fraud of the last fifty years has been the rise and acceptance of fiat "money." For that reason, I expect fiat money to meet its end before this bear market breathes its last. Judging by the size of the top, this could be the biggest bear market since the '30s. I believe this bear market means to take us back to basics and truth. That alone implies the end of central bank-created money and the rise of gold and probably silver. It may also end that immoral inflation machine, the Federal Reserve. Wall Street and its bankers now run the nation. That too will end.


The history of money in the US is a legend of lies, manipulation, immorality and greed. I think this bear market will end those lies, one way or another.


Russell on gold and silver:


This only suggests that gold could be rather wild between the months of December through April.


Silver joins gold. This morning silver broke above out of a huge triangle. This is bullish for the whole precious metal spectrum.


Investors sometimes get caught up in the day to day and week to week movements in gold and silver. Don’t waste your time or energy on that, just accumulate. Standing in front of us is the greatest transfer of wealth in history. When the dust settles, those holding the gold will make the rules.


Eric King
King World News

Slippery Slope

When a government plan fails, further government and agency programs will be initiated based on the same game plan.

Here we go down that slippery slope of bailing out homeowners without jobs and yesterday’s states without necessary income.

This period will consume as much and more than the first bailout of Wall Street – one trillion or more. Gold will trade $1650 and beyond.

- Jim Sinclair

Money Never Dies

Since the birth of man’s awareness of the future, money never dies. It only changes in form.

I have studied hyperinflation from ancient to modern times. It embodies the smell of fear and the felling of helpless for those unprepared for a currency transition. It is the manifestation of private and public panic – the panic to protect yourself, but neither knowing what to do nor able to do so in a timely manner. Hyperinflation is a crash in confidence of not only those that manage the currency but also the public leadership that surrounds it. Hyperinflation as an event tends to create both a confidence and power vacuum in which new leadership, either benign or sinister, tends to exploit.

Sincerely,
Eric