Gold Price Is No Surprise

First, "they" devalued your carefully saved investments with the great financial crisis and stock market crash last year, then "they" started spending money as fast as it could be printed, setting the stage for inflation to wipe out the value of what little you had left. The dollar that was recently (2002) valued at $1.24 in the international market is now worth $0.74. So people are running to any investment that will rise higher than inflation. Many people believe that it's gold which closed today at $1,055. It still hasn't reached the inflation adjusted high of $2,275.99 from 1980 when the country was mired in stagflation, but it's headed in that direction.

In times like these, you need to exercise all the creativity you have to protect your assets and provide for your family. I suggest you get started by watching this interview with Robert Kiyosaki, author of Rich Dad, Poor Dad. He may not have the exact plan for your situation, but he will help you to start thinking outside the box.

Economic Forecast

This is the last paragraph from "All I Ever Needed to Know about Economics I Learned in Genesis," that I read this morning...

"Running the printing presses day and night to churn out dollar bills is not going to revitalize the economy. At is most basic level every economy is about dealing with the “dust from the ground” of which we are made, with the rocks and soil of this planet. We aren’t like God, able to create ex nihilo; we aren’t angels who can sustain ourselves on “information.” The real stuff that makes an economy hum is fished or grown or mined. It is taking the raw materials of this earth, “by the sweat of your face,” and making it edible, wearable, or otherwise usable to some other human being that forms the basis of any economy. When we see growth there, that is when we will be back."

It reminds me of the maxim I learned in the fifties that all wealth is created by farming, fishing, mining, and manufacturing. All other industries or vocations merely served those wealth generating ones. Then in the late eighties, Everyone began to say that this was the Information Age and we no longer depended on that old maxim. At the same time, we began transforming farming into massive Agri-business enterprises that relied on government handouts and practically eliminated the family farms, began allowing other countries to fish our coastal waters without protest, began denigrating mining as environmentally harmful, and began shipping our manufacturing overseas. Those Everyones ignored the fact that computers and information technology was a form of manufacturing although they quickly began shipping all those related services overseas also.

We were lulled into thinking that because bankers and investment advisors were wealthy themselves, that they were creating wealth for our country's economy. Then last September, as it collapsed, that empire showed itself to be a mere house of cards as our personal wealth collapsed with it.

I pray that we have the will to rebuild the US economic base.