Here Come De Rescue, Or Is It?

Both silver and gold seem to be following Friday's graphic curves. Gold is still struggling to get above $900, but is slapped back on each advance. Silver seems to be lagging behind gold for the time being. Gold is at 895.90 and silver at 13.15.

By the way, check out the Royal Canadian Mint (www.mint.ca/). They have both gold and silver coins for sale with a low shipping cost of about 12.95 CDN. The prices are in CDN and one can purchase with a credit card. I ordered a few of the 1/4 gold coins.

The top news of this week will likely be all about the latest governmental intervention in our capitalistic free market. Oops, scratch that! Though those "in the know," our elitist blame the capitalistic unregulated free market for all of their failures, this ignores the fact that we do not and have not had a capitalistic free market for many decades. In fact, it was being put to death in the 1800s and was killed during the last Century. Do not be deceived, those in power are always searching for a Scape Goat to blame for their failures.

I remember during the great price inflationary period of the late 1970s that all the politicians were blaming the consumers for too much spending and for consumers demanding too big an increase in pay. If that was not bad enough, they even blamed businesses and landlords for raising their prices. Of course, the heart of the matter was government/central bank vast inflation of the U.S. Dollar since all backing of gold was removed by President Nixon on August 15, 1971. Nevertheless, the political fingers of blame are always diverted away from themselves. In this, there is little, if any change today. The popular media is quick to pick up the same finger of blame, as well.

It is a simple matter of supply and demand. When the supply of anything increases with a constant demand, the value or price of the "anything" increases. Thus, it is easy to see that when the supply of dollars increases by printing more dollars or increasing the cost of credit to add to the supply of dollars, purchasing power will diminish. That is the current plight of our dollar.

The bail out, I will be politically correct, the "rescue package" represents another increase in the supply of dollars. Guess what will happen to the value of the dollar and what will be the result in prices of everything we need and want? Yep, prices will rise, and we will be poorer.

Government will continue to play the intervention game and eventually, foreigners will decide that the dollar reserve has got to end. Then, we are really in uncharted waters with even so much as a rudder. We will be on drifting on a sea of financial disaster.

The band aids which have been applied have consistently increased in size. None has solved the prior problems. This newest band aid is the biggest yet. Do you think it will solve the problem for which it will be enacted this week?

Since we have been dumbed down by the government socialistic schools, most of us are unaware of what is happening. Many do not even care, because the look to the government as their messiah rather than to King Jesus who is the true and only Messiah. Remember, the "Blessed in the nation whose God is the Lord." He must be our Lord or we will fall as a people.

However, in Him, His people have all the necessary security which is available and we know where we will be in the fullness of His time. What peace and lasting joy He provides to His people in the promises of His word. I praise God daily for His many blessings.

Best to each, Doug