I am not one to watch any political convention broadcast. We have had enough heat this summer for me not to want to watch more hot air being spewed by politicians who only want to promote themselves and do not really care for the people or America.
My concern is for Hurricane Isaac’s destruction and the poor folks of New Orleans, who will be suffering, yet again. The constant barrage of media’s attention on the GOP convention rather than on the safety preparations for the hurricane is nothing but pandering to the politicians to jockey favors in the future.
Oddly enough, I did get to hear about a policy statement that showed complete agreement between the two opposing sides. President Barack Obama and GOP Presidential nominee Mitt Romney both agree that they will destroy the U.S. dollar.
OK, granted they did not say it in so many words. But they might as well as come and say that by what they are proposing and what it will do to the dollar.
First, we have the president, who has not really helped the deficit and has continued to allow it to spiral upward. His attempts at reigning in the deficits are feeble and half-hearted at best. The dollar has declined in six of the eight years he has been in office. The prospects of the dollar are bleaker now than when he took office. So, the past has been awful and the future looks terrible due to the unchecked deficits.
Romney arrives on the scenes as the wanna-be president and takes a potshot at the dollar before he even gets close to winning. He announced in one of his policy statements that he is forming a committee to evaluate whether the dollar should be linked to gold again.
It was 1933 when the United States started to draw the dollar away from the gold standard, and then in 1971, the link between the dollar and gold was completely broken. Since then we have seen the fastest and steepest rise of credit and money supply in the history of mankind.
Now, while no one will accept that the experiment has failed, the whole idea of re-linking the dollar to gold is an exercise in futility. Ronald Regan tried the same idea back in 1981 and it died a natural death then.
Let’s just do the math.
Today, the United States has about $2.56 trillion floating in the system. The U.S. gold reserves are about 262 million ounces. So basically, if we were to convert the dollar to be backed by gold, we would need to see gold at $10,000 per ounce. Do not forget, if this were to happen, the government would forcibly seize all the gold that the private citizens hold.
Don’t be shocked folks, because it has happened to us before.
Even if we back gold by 50 percent or 25 percent to the dollar, we would see gold skyrocket to $5,000 an ounce or maybe as low as $3,000 per ounce.
All of this means one thing, folks. It is curtains for the U.S. dollar whether the democrats win or the Republicans do. We will see the dollar plummet more intensely in the next four years than we have seen in the past four years.
I hope you have already begun your true diversification out of the dollar. If not, it is not too late yet to get started.
© 2016 Newsmax Finance. All rights reserved.