Due to the constant threat of an interest rate increase in December, gold is down more than 5% since the September FOMC meeting, in spite of non-farm payrolls missing targets, up-ticking unemployment numbers and the ongoing malaise of the global economy. Even more insipid than the Fed’s action is investor response, clinging to the hope of a continuing bull market (that’s already more than run its course), failing to address the true core issue of weak consumer demand, and being completely consumed with an insignificant interest rate increase (that will accomplish nothing and possibly only expedite the dollar’s deterioration).
Many will clamor to disagree, pointing out the rapid and rising strength of the U. S. dollar, compared to others in the global economy. To that I can only agree that the dollar is indeed the smartest individual in a room full of single-digit I.Q.’s. But what the investment community is completely overlooking is the ability and possible necessity of the International Monetary Fund (IMF) to take the reins of this runaway economic train. Why settle for the brightest moron in the class, when you can bring in a new student, with an advanced triple-digit I.Q. that everyone could aspire to be? The IMF has the ability and responsibility to do just that. Why is the investment community so clueless and careless of this fact?
An IMF “One World” currency could put the entire global economic community on an equal footing. A majority of world economies would find that event encouraging and refreshing. China would appreciate the change, in spite of the newness of their Special Drawing Rights global reserve exposure. Russia couldn’t hope for more and would think they died and went to heaven. Japan, Britain and Euro-countries would have a very difficult time, but may all survive. The United States however, would find itself in uncharted waters without a paddle. Most Americans are too young to even understand the incredible economic advantages we’ve been afforded for more than seventy years.
The bottom line to this article is really very simple. Luck is 10% determination and 90% preparation. If you, like most Americans are content to treat today like any other, to ignore all of the true economic indicators and to choose not to protect your assets, family and legacy with physical precious metal, then you may find yourself to be very unlucky, during a very desperate time. Almost every investment Americans make is directly tied to the dollar. When it returns to the carbon from which it came, so will all of its connected tentacles. Fortify your portfolio with physical, precious metals! Today’s absurdly low prices are just a bonus.