The Gold Rush Begins

Gold hit a new all time high today of $1,044 per ounce and it looks like this break out above $1,000 could be permanent. While this may be a new all time high in nominal terms, adjusted for inflation gold's high in 1980 of $850 equates to $2,300 per ounce in today's dollars. We believe the inflationary crisis we are rapidly approaching will be much worse than the inflation of the 1970's. Therefore, $2,300 per ounce gold could be here sooner than anybody thinks is possible.

There are news reports today that Saudi states are meeting with countries like China and Japan in order to end dollar-based oil transactions and begin transacting oil using a new basket of currencies. It is the U.S. dollar's status as the world's reserve currency and the fact that foreign nations are forced to trade oil and other commodities in U.S. dollars, that has kept the U.S. economy propped up until now.

Up until today, foreign countries have been forced to hold huge U.S. dollar reserves which has allowed the U.S. to sell an increasing supply of U.S. Treasuries and thereby export its inflation to the rest of the world. Soon, foreign countries will no longer have a reason to hold U.S. dollars and there will be no interest in buying our debt. Almost all of the U.S. government's deficit spending will have to be paid for by outright money printing by the Federal Reserve.

Report continues at:

http://www.inflation.us/goldcouldriseto5400.html

Town Hall Meeting with Rep. Brian Baird [D, WA-3], in Clark County Washington - August 18, 2009

"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill."

— Charles A. Lindbergh, Sr. , 1913

Barack Obama supports bill that gives immunity to telecommunications companies that helped the Bush Administration spy on Americans

The measure, H.R. 6304, the FISA Amendments Act of 2008, condones the actions of telecommunications companies that cooperated with illegal warrantless surveillance after 9/11 by virtually assuring the dismissal of the dozens of lawsuits pending against them. And it invites future abuses by failing to give the Foreign Intelligence Surveillance Court the authority to protect law-abiding Americans from being spied on by their government.

Congress has now made it far too easy for spy agencies to vacuum up data from private phone calls and e-mails without meaningful oversight by an independent court. The bill fails at the most fundamental level to restore the independent judicial check on executive power that the Bush administration has done so much to undermine.

• Barack Obama voted in favor of this bill that gives immunity to telecoms that have aided illegal government surveillance in the past.
• Barack Obama voted in favor of this new law that gives the government the power to conduct dragnet surveillance that has no connection to terrorism or criminal activity of any kind.
• Barack Obama voted in favor of this law that is fundamentally inconsistent with the Constitution and with the most basic values of the Republic we live in.

"The hand that destroys the Constitution rends our Union asunder forever."

- - Daniel Webster