I came across an interesting article in a Stansberry and Porter article entitled, WHY SILVER NOW. The article written earlier this year by Porter Stansberry and the S&A research team had this to say, “Most people realize the government propped up the banks with its repeated bailouts. But most folks don’t understand the real way the government saved the banks. It’s not the shares the feds bought (and paid too much for). It’s the whole system of paper money. The government is deliberately kept short-term interest rates super low, so the banks’ funding costs almost disappeared.
Then, by running a huge budget deficit and spending record amounts of money on domestic programs New York Mets Hats , the government insured inflation (and longer-term rates) remained high. The banks made money on the spread between short-term rates and long-term rates. And just to make sure nothing goes wrong, the Fed is promising to buy trillions (yes, that’s trillion) worth of mortgages, many of which come directly from troubled banks like Citigroup. In short, there’s no way these banks can lose.
But of course, there is a real cost. The value of our currency goes down with every new dollar the Fed prints and with every dollar of new deficit spending. But the politicians can all pretend inflation doesn’t exist. When it shows up in our economy, they can lay the blame with “speculators” and oil companies…
The government can manipulate the dollar like this because it’s not backed by gold. President Nixon “temporarily” cut the tie between the dollar and gold in August 1971. At the time, Nixon promised the dollar won’t be devalued – “your dollar will be worth just as much tomorrow as today New York Mets T-Shirts ,” he said…
At the time, $35 would buy an ounce of gold. Today, it takes around $1,400. That’s a 97.5% decline in purchasing power. It’s fascinating how many people believe this won’t happen again… despite the fact that we’ve got runaway deficits, we’re trying to fight two overseas wars, we’ve passed the largest new entitlement program in history… and we’ve propped up every major bank in the United States.
I’m not surprised gold is trading at $1,400. I’m surprised it’s not trading for more than $5,000. Put simply New York Mets Hoodie , if you double the number of dollars in circulation, it costs twice as many of them to buy the same amount of silver or gold. So wealthy investors buy precious metals to hedge against inflation and general chaos in the markets.
Before 1900, the U.S. dollar was pegged to both gold and silver. Back then, one ounce of gold was worth $20.65, and an ounce of silver was worth $1.29. And up until 1971, the U.S. dollar was pegged to gold. Silver fell by the wayside because it’s less valuable and takes up far more space.
The U.S. central bank still backs about 78% of our currency with gold, so gold is still treated as money. Silver, on the other hand Customized New York Mets Jersey , is usually only used for jewelry and industrial purposes. Back when gold and silver were both used as money, gold was about 16 times more expensive than silver.
As I write, gold trades for about $1,400 an ounce and silver trades for about $27 an ounce… a ratio of roughly 50:1. And as I explained, inflation in about to explode… and when it does, precious metals soar.
Between 1973 and 1980, a period of blistering inflation, the price of gold went up 710%… while silver soared 1 New York Mets Jerseys ,481%. History has shown as inflation increases, more people will turn to silver as a store of wealth. Silver’s cheaper than gold, and just as safe. Once this happens, the goldsilver ratio should revert back to its mean of 16. If silver trades at one-sixteenth the price of gold, it would cost $87.50 an ounce…”
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Yasiel Puig Breaks Bat On Check Swing – RealGM Wiretap
Add another page to the early career legend of Yasiel Puig, who snapped a bat at the handle while checking his swing without ever touching the ball on Friday night, according to an MLB report.
Puig stopped swinging at a 2-1 sinker from Zach Duke and was left with the handle in his hands while the rest of the bat snapped off and landed about 20 feet in front of home plate.