As most of you know, I have been bullish on gold/silver now for many years. Starting in late/2005-early/2006 I urged you repeatedly in countless email alerts to get out of Real Estate (which I predicted would crash into the ground) and accumulate gold (which was around $450 per ounce at the time).

I have remained bullish on gold/silver consistently and never flip-flopped once… until now. Today, I officially am a bear on gold/silver and believe we have a gold/silver bubble.

There is nothing really special about gold and silver. You can’t eat it. You can’t even go to the store and buy anything with it. Americans have become used to fiat currencies and I doubt we will ever go back to the “stone age” of bartering with gold and silver.

Bernanke, Paulson and Geithner did an amazing job at solving the financial crisis of 2008 and we should all bow down and salute them, we owe them a lot. It took a lot of courage from Bernanke to expand the Fed’s balance sheet as much as he did with his brilliant quantitative easing, and it took equally as much courage from Paulson and Geithner to bailout “too-big-to-fail” banks like Citigroup, Bank of America and JP Morgan, but we are all now better off because of it.

Unemployment may be high at 9.7%, but we would likely have 15% or higher unemployment right now if Bernanke, Paulson and Geithner didn’t do what they did. Today, we are on a road towards recovery.

Obama is now making it his main focus to reduce our budget deficit and I predict within a few years we will have a balanced budget. Obama is already taking steps to freeze government spending and I am sure the debt ceiling won’t ever have to be raised again.

I am also extremely confident that Bernanke’s exit strategy will work and he will be able to successfully mop up the excess liquidity before the U.S. experiences hyperinflation. In fact, there are absolutely no signs of inflation anywhere and we might even experience deflation in the years ahead.

With gold up $12 today to $1,126.50 per ounce and silver up $0.429 today to $17.955 per ounce, today could be the perfect exit point and a top for precious metals before a decline similar to what we experienced in late-2008.

The U.S. economy isn’t out of the woods yet, but as bad as things are in the U.S. they are worse everywhere else. China needs the U.S. to police the rest of the world and I am sure the Chinese will continue propping up the U.S. dollar forever because they need Americans to consume their goods. Without the U.S., where would the Chinese export to? Europe? Give me a break… with the crisis in Greece, the Euro is a lot more fundamentally flawed than the U.S. dollar.

The U.S. dollar will always remain the world’s reserve currency. Gold and silver are pretty much useless.

I think this takes the cake for the best April fool’s day 2010 joke.

If indeed the true cost of the health care bill follows the historical pattern, we could see $10 trillion or more added to the already staggering $12.67 trillion.  Tax receipts will not even pay for the interest on public debts.  We are already at a point where even if the government taxed Americans 100% of their income, it would not be enough to balance the budget.  Rather than taxing Americans 100% of their income, or cutting 100% of spending and entitlement payments such as Medicare, Medicaid, and Social Security, the government will more likely keep borrowing money from the federal reserve in order to monetize the debt – which will cause hyperinflation.

Expect double digit inflation by 2014.  This is the new reality – no more fun and games America!

This is great news – and if your congressman/woman hasn’t cosponsored HR 1207, ask them to cosponsor it today! Also ask your senators if they will cosponsor S 604!

For reference, the house bill HR 1207 is called the “Federal Reserve Transparency Act of 2009″ and S 604 is called “Federal Reserve Sunshine Act of 2009″.

FREEDOM!!!!

Obama and the Congress love Bernanke because he makes their lives very easy.  Obama can’t run his huge deficits without Bernanke.  Congress doesn’t have to cut spending with Bernanke.  Obama wants desperately to keep Bernanke around in order to run his socialized health care system.  All of the deficit spending is possible because unlike Paul Volker, Ben Bernanke is letting Obama and Congress off the hook by monetizing all the debt.

Politicians hated Paul Volker because he raised interest rates to over 20% during his chairmanship.  They all wanted him to resign because they could no longer run deficits that they thought they needed to get re-elected.  Alan Greenspan, often heralded as the greatest Fed chairman ever, lowered interest rates to 1%, effectively monetizing debt through the expansion of the money supply via wide open credit from the Fed.  Ben Bernanke is doing the same thing – delaying the inevitable economic pain and suffering – by lowering interest rates to a staggering all time low of 0%.  Of course Obama and the Congress love Bernanke! They can continue to spend, spend, spend, with no short term consequences.  The consequences are delayed and transferred to our children, who will inherit the debt and won’t be able to repay it.

See Peter Schiff’s great video below.

Watch and enjoy.

Also watch Ron Paul’s questioning of Ben Bernanke on the same day.

Learn about economics, the Federal Reserve, the Constitution, current news, and civil liberties at freedomwatchonfox.com with Judge Napolitano.

Learn about the Federal Reserve, Iraq, the Constitution, civil liberties, and taxes at campaignforliberty.com – the continuation of Ron Paul’s presidential campaign and freedom movement.

Learn about the Federal Reserve, economics, Iraq, gold, and silver at lewrockwell.com.

Also please check out Chuck Baldwin’s newsletter at chuckbaldwinlive.com!  Baldwin will talk about topics ranging from Iraq, gold and silver, the new world order, world government, globalism, Christianity, and much much more.

I will add more great links in the future, so check back!

Ben Bernanke

On December 16, 2008, the Federal Reserve cut its key interest rate to a range between 0 and .25%, the lowest since 1954.

Why does the Federal Reserve, a group of wealthy private bankers who were unconstitutionally given a monopoly on the creation of money in the United States, think it can solve this economic crisis by doing the very thing it did to create the problem in the first place?  By lowering interest rates, the Federal Reserve is attempting to inject liquidity into the market by making lending more attractive to member banks, and their member banks, all the way down to the consumer trying to buy a car or house he/she cannot afford.  As if the massive debt realized by this process is not bad enough, the money that the Fed issues is printed out of thin air, and thus debases the dollar.

I suppose there is some good news: the Federal Reserve cannot lower interest rates any more!  When this last ditch effort to mend the economy fails, which it is bound to do, everyone will (finally) understand that the Federal Reserve cannot simply print wealth.  Everyone will understand that deficit financing and monetization of debt can only last so long.  Everyone will understand what happens when an organization like the Federal Reserve is allowed to operate with no oversight, regulation, or transparency to the people of the United States of America.   Everyone will finally understand that the unlimited production of fiat currency is a system that is inherently flawed and destined for failure.

Everyone will realize that Ron Paul, Peter Schiff, and so many others were right after all.

The crash we saw in the stock market during the past few weeks is nothing compared to the crash we are about to see in the Dollar.

Unfortunately, everybody in the government and media is too focused on current problems… they don’t have the foresight to see what problems are about to come next.

Everybody panicked and sold their stocks… and now they are hoarding Dollars. They escaped a hurricane but are now in the path of a tornado.

The hoarding of Dollars has created a temporarily strong Dollar… which is giving cover for Bernanke and Paulson to create as many Dollars as they want out of thin air to inflate the marketplace with liquidity.

If a publicly traded company was diluting their stock at the same rate as Bernanke and Paulson are diluting the Dollar… the stock would be trading for subpenny.

If your doctor was diluting your medicine or your farmer was diluting your milk, you would be outraged… wouldn’t you?

Just because we haven’t seen a run on the Dollar up until now, doesn’t mean it isn’t coming. It is coming… and it will happen very soon.

Most Americans don’t think it is possible for the Dollar to collapse. Some Americans think Dollars are still backed by Gold. It is this false trust and confidence that is keeping the Dollar propped up for now.

This trust will quickly evaporate. How could you trust a currency when the treasury secretary of the country is injecting $10 billion of this newly printed money into Goldman Sachs, his former company?

Now the Democrats in Congress want a new $150 billion stimulus plan. I told you before the first one was passed that it would be a disaster… and send prices of food and fuel through the roof. We had $5 a gallon gas by the time the checks arrived.

A stimulus is a direct injection of inflation… where you don’t have to wait to feel the effects. The $700 billion bailout will take a few months to work its way through the system… but combined with a stimulus we could see a perfect storm.

I profiled nine Gold and Silver companies as stocks to watch on Saturday, the most new stocks to watch I ever announced in one day. I gave DROOY a speculative rating of 1, my highest level of confidence. DROOY has been in business since 1895.

If you look at its long-term chart, back in 1979-1981… DROOY made a run from $15 to over $500 in less than two years. Another run like this for DROOY and several other of my new stocks to watch… is not only possible, but likely… if Gold prices skyrocket like I expect.

Hopefully those who doubted me in 2005 when I said to get out of Real Estate, will trust me now when I say to get out of the Dollar. Commodities will be the new hot asset class to invest in… and Gold will lead the way.

The People’s Daily, the official newspaper of the Chinese Communist Party, calls for a new currency order after “financial tsunami” saying, “The world urgently needs to create a diversified currency and financial system and fair and just financial order that is not dependent on the United States.”

Chinese call for a New Currency Order in wake of “Financial Tsunami”

Nicolas Sarkozy, President of France, called for a new world order.  “There will be no peace unless the international community stands full square in its determination to fight terrorism”.  Poorly chosen words, perhaps, because Sarkozy also talks about ending the wars in the middle east.  Perhaps not though, since Sarkozy is friendly with George W. Bush, who’s father George H.W. Bush was a huge proponent of a “new world order”.

Nicolas Sarkozy calls for a “new world order”

The Chinese Communist Party, Nicolas Sarkozy, and George H.W. Bush are not the only ones that have called for a new world order:

Barack Obama calls for a new world order in Berlin

Bill Clinton’s new world order worldview

Gordon Brown, Britain’s new Prime Mininster, new world order speech

Tony Blair, former Britain Prime Minister, new world order speech

George H.W. Bush original new world order speech