Gold at Infinity?
By Robert Ringer
The talk about gold reaching unprecedented of levels has been ratcheting up right along with the continued demise of the dollar. The highest figure I’ve heard to date is Peter Schiff’s prediction of $5,000 an ounce in the next couple of years. Do I believe $5,000 an ounce is possible? Yes, but even that price could be but a fleeting milestone along the road to runaway inflation.
What no one seems to take into account when predicting the price of gold, oil, or any other commodity is the Zimbabwe Factor. In other words, what happens if the dollar ultimately becomes worthless — as in zero? Not possible? To quote Thomas Friedman (a liberal, of all things!), “We are not who we think we are. We are living on borrowed time and borrowed dimes.”
If a whole bunch of fresh faces don’t take control of Congress in 2010 — folks whose mantra is repeal, rescind, and revoke — runaway inflation may be inevitable. Under the Obama-Pelosi-Reid axis, we’re moving toward such a scenario at mach speed. Under a Hatch-McCain-Graham controlled Congress, we’d still get there, albeit a bit more slowly — and most Americans wouldn’t even feel the progressive’s water heating up as the end grew near.
If voters don’t get serious about revolting against the tyrannical politicians who are putting them in chains and stealing not just from them, but from their children and grandchildren as well, the total and complete collapse of the U.S. dollar is inevitable. Clear back in 2002. David Walker, former Comptroller General of the United States, warned the House Ways and Means Committee that a Medicare prescription drug benefit would be an unmanageable burden to the already unmanageable U.S. debt and unfunded liabilities.
Ignoring Walker’s warnings, the Bush Administration went right ahead anyway and pushed a new Medicare prescription drug benefit through the Congress. Now, under BHO, that commitment is starting to look like pocket change. If some form — any form — of healthcare bill that includes government involvement is passed, the result may be irreversible.
That’s when gold at $5,000 an ounce will be but a fond memory, because if the U.S. currency dies, the price of gold in U.S. dollars will be infinity. More to the point, no one in his right mind is going to accept any amount of dollars in exchange for any amount of gold — thus gold would not even be quoted in dollars.
Of course, if such a scenario comes to pass, the non-dollar price of gold will be the least of our problems.
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Copyright © 2012 Robert Ringer
ROBERT RINGER is a New York Times #1 bestselling author and host of the highly acclaimed Liberty Education Interview Series, which features interviews with top political, economic, and social leaders. He has appeared on Fox News, Fox Business, The Tonight Show, Today, The Dennis Miller Show, Good Morning America, The Lars Larson Show, ABC Nightline, and The Charlie Rose Show, and has been the subject of feature articles in such major publications as Time, People, The Wall Street Journal, Fortune, Barron's, and The New York Times.
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“Paper money eventually returns to its intrinsic value – zero.” — François-Marie Arouet
Recently, after being asked several times, I pondered over how I could explain, in very simple terms, what is presently happening with the globalized-planet’s reserve currency ..
In the past, when individuals asked me, “how did you become so informed?” I just replied by saying, “Read what I read: The great-written-works of modern authors—such as Robert Ringer, Peter Schiff, Marc Faber, Jim Rogers, and all the other individuals— whom I call the humble giants of thought.”
All these individuals are plugged in and aware of what’s happening in the world around them. If you read their books, then you will be brought up to speed on just what’s going on,up,and down around the globe.
If I encapsulated, very succinctly, what is happening in the world: I would have to say that the world is currently in the largest credit expansion/ inflation cycle in history; Whereby, the governments of most countries are forcing—in one way or another— both the public and private sectors to flourish on both borrowed and printed paper-money.
In simple terms, what is now happening, worldwide, could be called the Borrow & Print Bubble—and believe me, it is the mother of all bubbles. In very basic terms, it’s a cycle that goes something like this: Borrow and print and borrow and print larger and larger amounts of money, at an ever accelerating pace, until you expand the national deficit to approximately 35% of GDP.
Once the Borrow & Print Bubble has expanded the national deficit that far, it then encounters what Ludwig von Mises called, “the barriers which prevent the boundless expansion of circulation credit…..[this leads] to the crack-up boom and the breakdown of the whole monetary system.”
Yes, this mother of all bubbles will pop as the direct result of hyperinflation and currency destruction. This, in turn, will lead to such extreme anguish among the masses, that a violent revolution is almost an unavoidable certainty. Some ask, “What will happen after the revolution is over?”
If the armed and unarmed forces of free-markets and liberty are victorious in killing off socialism, then a Great American Renaissance will lead the world in a rebirth of individual freedom. If the tyrannical forces of socialism prevail, then it’s serfdom or death for all of us.
That’s why, for over 25 years, I’ve been preparing to see and experience the day of reckoning. I call it The Do Or Die Day. It’s a day when the masses are in so much pain and jeopardy, that they must act—they must do something or die trying. I think it likely the masses will reach the point that they will have nothing to lose in the foreseeable future (i.e. about the time the Baby Boomers are mostly all retired or maybe even sooner.)
That’s why I’m still buying guns, gold, silver, and other tangible assets. Of course, there is no guarantee that the government and/or the masses won’t try and confiscate these investments; Still, all in all, I’m so very grateful to individuals, like Mr. Ringer, who have pointed me in the right direction. At least my odds of survival are better than most. They may pry from my cold dead fingers that which is mine, but it will cost those that try some of their very own blood.
Right now, what I’m really hoping for is a real man to appear. Somebody like Andrew Jackson. Somebody who uses violence when violence is needed. A leader and a champion of freedom; Somebody who will “rout [them all] out” permanently. In short, I want a leader that is an expert in violence.
Personally, if things turn violent, then I won’t feel a bit sorry for all those corrupt bankers, politicians, and community-organizers who will be turned into corpses. Their worthless paper money won’t save them; And by that time, all their political capital will be spent.
The only thing that will save them is if they stop socializing America and start deflating the credit/inflation bubble right now. And then allow a Great American Renaissance to peaceably undue all the damage that has been happening for the last hundred years to our great country. I say, let a peaceable renaissance begin before it is to late. Sadly, it’s likely going to take a civil war to crush socialism.
“You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out.”….. Andrew Jackson: To delegation of bankers discussing the Bank Renewal Bill, 1832
I don’t have much to say except that I think it is already too late to stop the inevitable inflation. Even if we kicked all of the liberals out of congress the seeds of our destruction have been sown and starting to sprout. Get ready for massive riots in all of our inner cities…. Cheers /DaveB
PS: Pretty good article but not strong enough.
I wonder if Robert would give us an idea of his thoughts regarding how the average middle class family – I will qualify that as the “enlightened” ave. middle class family – might muddle through if these really bad case scenarios come to pass. Obviously, buying gold is a start. What about places to relocate, occupations, opportunities, etc.? I feel almost guilty asking because he has written The Coming Collapse and addressed many of these issues, but times change and I wonder if he would share his thoughts. Seems to me like a lot will involve one’s personal outlook. As in Man’s Search for Meaning, Frankl talks about choosing one’s own perspective as the last liberty that cannot be taken. We will probably need to learn to be happy with less, as folks did without a century and half century ago. Family, natural diversions, reading, etc. will need to provide sources of pleasure. Learning, and so forth. And maybe from this something better will emerge. Still, one must be concern that the goodness that constituted America may be dying out and eventually killed by this govt. when the going gets tough.
Like you I am afraid “Gold at Infinity is exactly where we are headed unless something is done quickly.
A while back you talked about a viable 3rd party to change the direction of things. Here it is: go to TwelveVisionsWorld.com,click on the National Platform and read “Split Run” America Split A vs Split B.
At what price level will the Obamachine confiscate all gold held by U.S. Citizens?
Another couple of “Re-” words to consider: Reset, Reboot…
That’s what I’d like to do — reboot the country… Just like when your computer gets all slowed down or your PDA gets all garbled. What do you do? REBOOT!
…Just imagine 535 pasty-faced boobs cowering as the “angry mob” descends upon them, chanting, “Reboot! Reboot!” … Just kidding…
-p