Noting that my silver investments are rising rapidly, I'd like to point out a little history lesson and use the Colt Single Action Army as a teaching tool.The venerable Frontier Six Shooter, as it is also called, is familiar to anyone who has ever watched a cowboy movie set after 1873. One of Samuel Colt's most famous and iconic weapons, it has been in production for over 138 years. It has undergone three major changes, but the current model has persisted in its current form for many decades.In the 1939 catalog I have in my gun shop, the basic revolver sold for $37.50. In 1969, two years before Richard Nixon took America of the Gold Standard, it retailed for $160. Today, in 2011, the retail cost is $1569.54 for the SAME GUN. What is going on?
The Federal Reserve a private bank set up set up America's Fiscal Policy, creates money out of thin air by writing a hot check to the US Treasury who then cranks up the printing presses and makes TRILLION$$$ of dollars worth of new US currency. These paper notes, called Federal Reserve notes, are loaned to member banks at ridiculously low (read nothing) interests rates. The problem is that, with fiat currency, there is no underlying "real" money in the US vault (Ft Knox , Kentucky) to back the new currency. In the old days, pre- 1971, you held a Silver Certificate in your hands, and could present it to the US treasury for real currency, ie silver bullion or coins. Today you can't. The result is your dollars held in savings, the money you invest for you retirement and so forth is worth less. Far less in fact.
I'm 62 years old. When I was a kid in Houston, Texas my favorite candy bar was the four oz Baby Ruth. I would hop my bike and ride a half mile to a tiny little neighborhood store and buy one - for 6 cents. At convenience stores today, the same bar bring $1.79. At ten years old, I made extra money pulling handbills on every screen door on a mile long street. I would walk up one side and back down the other, with my only concern a could German Shepherd dogs who occasionally jumped a three foot chain link fence and try to bite me. I love dogs but those Shepherds got my handbill bag slung against their barking heads when they got out and made their run at me. For an hours work , I was paid $1.00. Six years later, I made$1.50 and hour on a construction crew in Houston. Married guys with two kids made $1.65, cause they had been there for years.
I was sick of school, but that experience lead me to decide to get a college degree. (Actually two : Engineering management , Farm and ranch management with a couple minors in Psychology and Economics)
So what have we learned today? Besides child labor doesn't pay. We learned that Quantitative Easing (Called QE) by the federal reserve is not a good thing. Printing more paper money without gold or silver in the bank is diluting the value of the money in existence. If you did what the Fed and the Treasure Department do, they would jail you for check kiting and counter-fitting. Those practices are bad, from an individual or a government. The government can rig the Consumer Price index to tell you there is no inflation, but you don't have to take my word for it. Look at the Gas pump. Read the news. Is Oil high ? Is Silver high? Is Gold high? The honest answer is no, they are not rising. The dollar is falling , and fast. In 1990, a dollar bought 118 Yen.
Today you get 84. Pay attention and protect yourself. Read more and learn more.
Buck Stienke
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