Thursday, April 21, 2011

American Public Doesn't Understand Or Care What Is Happening

The Only True Standard of Value

Richard Russell snippet
Dow Theory Letters
Apr 21, 2011

April 20, 2011 -- The dollar is doing just what the Fed wants it to do -- it's sinking, sinking and sinking more. Sadly, the great American public doesn't understand what's happening, and if they were told they couldn't care less. Of course, what the public does notice is the painful result of the dollar's bear market. The result is seen every time Joe six-pack and his wife hit the neighborhood super-market. The rising prices are a shocker. And if the price of your favorite cold cereal has not been raised, there is less of the cereal in the box. Then when Joe has to fill up the buggy to get home, he groans as he sees the gasoline tab. "Sixty bucks to fill up this lemon. I'm going to get a motorized bike," growls Joey. "This country is going to hell in a hand-basket."
The US has been getting away with spending more than it takes in ever since World War II. It's a process that isn't sustainable, and if a process is unsustainable it will end. The US's habit of spending more than it's paying for has finally hit a brick wall. The wall is the demise of the famous "Yankee dollar." In order for the US to live over its head, it must borrow. Half of the US's borrowing comes from foreign sources. And that's a problem.
The fiat US dollar has no fixed value. It's worth must be measured against other currencies. "The dollar is worth so much in relation to the Brit pound -- or the dollar is worth so much in terms of the euro." Our foreign creditors, many of whom are loaded with dollars, keep a sharp eye on the comparative value of the dollar, and they're now frightened and mulling over the credit-worthiness of the US. The recent warning from the S&P rating agency heightened our creditors worries about both the US and the dollar. The disgraceful battle between Obama and the Democrats vs. Paul Ryan and the Republicans is further raising the fears of our creditors.
With commodity inflation now out in the open, Fed head Bernanke has a problem. His absurd defense is to refer to "core inflation" (without the cost of food and energy). Bernanke announces to the world that there's "no inflation," and besides if there is inflation the Fed can end it any time they want.
What Bernanke and the Fed can not control is the tell-tale price of gold. As I write the battle is on to keep June gold from closing above 1500. Yesterday June gold hit an intra-day high of 1500, but can it close there? "Ah," Bernanke must be thinking, "If I could only control the price of that damn gold."
Yesterday, as I looked at my computer, and I could see the fierce struggle that was going on as gold whipped up six dollars, then five minutes later it is up a dollar-fifty. There must be a powerful contingent (perhaps backed by the Fed) that is desperate to keep the price of gold DOWN and below 1500.
But alas for the Fed, gold is traded internationally across the face of the planet and 24 hours a day. Gold is out of the hands of the Fed and Goldman Sachs, and it trades everywhere and where it wants.
This year I've been telling my subscribers to think in terms of two concepts:
(1) Think in terms of avoiding losses (rather than thinking in terms of building fat profits).
(2) Think in terms of PURCHASING POWER. Are you gaining or losing purchasing power?
For ten years I've advised my subscribers to climb aboard the great bull market in gold. Early subscribers who have followed my advice now have huge paper profits, many have become millionaires, others have been able to retire on their gold positions.
Even new-comers have benefited from their belated investments in gold. Over the last 12 months, the dollar price of gold is up 31.32 percent.
Gold is the only true standard of value. The value of everything else must be measured in terms of gold. "How many ounces of gold does it take today to buy a new Ford?" "How many ounces of gold did it require to buy a new ford in 1932?" It costs a lot more (in dollars) to buy a new Ford today. But how many ounces of gold does it cost to buy a new Ford today compared with the ounces required in 1932 to buy a new Ford? What has changed, gold or the dollar? Gold hasn't changed, what has changed is the dollar, which has lost purchasing power.
The US public is rapidly being educated about money and gold. Ads are appearing almost daily in the newspapers, telling readers how and why to buy gold. The ads are being confirmed by the rising price of gold. The public is finally "getting it". I've been in this business since 1958, and I've seen a lot of advisory services come and go -- a lot! What I notice is that there are a number of fairly new advisories that are climbing (entering) on the back of the gold bull market. These advisories are sending out mass mailings to the public -- educating them on the fact of the dying dollar and the Fed's plan to solve the debt problem by diminishing the purchasing power of the dollar. As Lincoln put it, "You can't fool all of the people all of the time." Clueless as the American populace is, they are finally learning about gold, something that their great grandparents took for granted.
In terms of gold: Assessing real estate values in terms of gold. At its peak, the housing market in March 2007, the median US home price was $262,600, which was equivalent to 340.6 ounces of gold. Today's median income price is $186,100 or 109.2 ounces of gold. So in terms of real money, gold, the US median home price has lost 47% since 2007.
Applying the same measurements to the Dow, from the end of 2001 to the end of 2008 an investment in the Dow would have lost 81% of its purchasing power in terms of gold (statistic courtesy Larry Edelson of the outstanding "Uncommon Wisdom" advisory).
The great and harsh lesson of history now stares Americans in the face -- no fiat currency in history has ever survived. This fact underscores the growing panic to get out of dollars and out of all fiat currencies.
This emphasizes the irony of those who are rushing into dollars or dollar-denominated bonds and blue-chip stocks on the thesis that these are "safe havens." It's a rush out of dollars to get into other forms of dollars.
What's happening now is on a greater scale than has ever occurred before in the history of mankind. It's going to hit the current generation of Americans like a whirlwind. It will be historic in its intensity and destructiveness.
The great gold rush of 1849 opened up the American West. This gold rush of the early 2000's will open up the eyes of Americans to the danger of the Federal Reserve and fiat money.
More Here..


  1. America, get ready, the truth is being spoken so plainly. Our nation will fall apart. Simon & Garfunkel wrote "A Bridge over Trouble Water" We need a bridge over trouble water. Aretha Franklin later put a soulful touch to it. We are in trouble and 90% of America will fall to the way side. There will be no middle class as we know it today. I BEG EVERYONE - We need a bridge over trouble water. That bridge must be food, shelter, water, guns, ammo. Then silver and gold. SAIL ON SILVER.

  2. 9:33 - As Simon & Garfunkel would say in that song "SAIL ON SILVER GIRL, SAIL ON BY, YOUR TIME HAS COME TO SHINE ON US. SEE HOW IT RUN" My goodness come on SILVER

  3. In the Childrens show "Rudolph the red nosed Reindeer", Burl Ives sang " Silver and Gold", "Silver and Gold"!

  4. Why is everyone worried? Didn't Obama promise to fix all of our problems?

    Don't you people trust him? Why are you all so racist?

  5. For the love of God! Let's just get this started...I'm tired of waiting for the punch...Let it crash so we can clean up.

    The more we postpone the worse it'll be.

    Some snotty, stubborn, semi-rich, pseudo intellectuals are about to be poor...That alone makes me smile.

    Everyone laughs at the ant till the hunger and cold of winter comes.

  6. Why are you worried? Did'nt bush say he would fix everything, instead he created the biggest police state in the world with the tsa nazi's and giving us the un patriotic act which took away our rights forever, bush said "let them eat cake".

  7. 12:44 - I guess you just woke up from a self-induced coma. Here's a newsflash - BUSH ISN'T PRESIDENT!!! So stop sounding like an Obozo flunky and blaming Bush for problems Obozo created himself or made even WORSE.

  8. mcdonalds is hiring some 50,000 people, what could be wrong, things are good, happy day's are here again(and happy meals), big money paychecks, with ample benni's too, and free meals full of goodness for the tummy, and in florida if your down you can get a cape, become a caped wonder fighting bad times wherever their found, alls well alls well just don your cape and don't worry be happy.

    Now don't you all have some shows to watch, american idol and dancing with the stars and surviver, you'd better get seated the shows about to start

  9. 1258 you sound like a stupid jesus fucker who buys all the lies, time to wake up, bush created the tsa, unpatriot act, those two alone, took away more rights than anytime in us history, You are a Moron!

  10. Conservative AvengerApril 21, 2011 at 6:17 PM

    1:08 - Oh, believe me, I'm fully awake and ready to do battle with Obama lovers and progressives/leftists/radicals like yourself. In the meantime, please spare us the psychotic anti-Bush rants and raves. You're merely repeating yourself, using unnecessary foul language, and taking the Lord's name in vain which tells me that your IQ is quite low (that's a moron, moron). Please go back under the slimy rock you slithered out from underneath today.

  11. 317 nice sidestep on the bush created tsa and un patriot act, that is what fake consevatives do, denial at it's finest, ready to do battle as well. The fake lord, None exist is your way of trying to say your superior, when you are nothing of the such, idiots like yourself make it possible for the nwo types to get away with their plots, they keep you controlled with fake religion, while stealing from you with the other hand, you are too stupid to realize it. Now go back and fuck your fake jesus some more.

  12. eh now people let gods sit among gods, men for men, mice with men. nothing so wrong as free prayer, but lo, we are attacked from all sides. Lets see it folks first comes the anger, then comes more anger. Good. Feel it, and smell the rage in you. This makes us strong to do things like vandalize. Smash some buildings people, take rocks throw em at a limo. Lets get thise revoltion started babys. Lets show em who owns the money. Give it to em. The enemy is rich people. Simple. Pray for senaters, prayer for family, pray for all things holy. Just dont fight each other, but fight the machine baby. Dig holes, dig trenches, smash cars, bust windows, and carry the flag of choise, we march as one nation. time to dominate the globe for justice equality. All people are equal now, and will have the money given to them.

    - Sam

  13. Sam, isn't it time for you to return to the asylum?

  14. Sam, please take 3:25 back with you to the looney bin this evening. Also, you guys may want to re-enroll in elementary school because neither of you can write. Why do both of you embarrass yourselves in front of thousands of people with CRAZY, INCOHERENT thoughts and the writing talents of a four-year old?

  15. 3:25 - You really are a disgusting pig.

  16. It's amazing to me that some people will still try to pin this current destruction we're in and much more to come to a previous administration!

    Newsflash asshole - when your CEO - your fucking CEO and when your out; she ain't your problem that very next day! But baby; when the new one walks thru that door - the fucking ship better get righted or the shareholders will have your balls in a vise

    3 ( THREE ) years into it - this dickbag is heading us into totally unsustainable numbers
    I mean 'cmon - a 15 TRILLION dollar debt !!

    Do you even know how much that is??

    Time to call a spade a spade & I don't ever recall ANY previous administration still blaming their predecessors 3 fucking years later

    No Sir - he OWNS IT - just like the new CEO read Lee Iacoca's new book - this from a man who KNOWS what the fuck he's talking about !

  17. 348 your mama punk, you are disgusting, you are no better than anyone else, you stink.

  18. 3:55 you remind me of that ingrate nutcase in dirty harry
    you know - the one at the end of the movie where
    Callahan says " well to tell you the truth; in all the excitement I lost track myself - but bein's this is a .44 magnum, the most powerful
    handgun in the world and would blow you head clean off= you have to ask yourself

    Do I feel lucky?


    Do Ya ?


  19. So much for civilized comments. Really people, it's obvious. We've been played for the past 20 years by both Demorats and Repugnicans... If you think there is a difference, you're still under their thumbs...

  20. 400 you remind me of a jesus fucker in denial, no matter what evidence is in front of you, in black and white you dont beleive it. Like bush creating the tsa after 911, to further remove rights or him creating the un patriot act to remove some more, no matter what, even though that is fact, you still wont accept it, but you will accept a fake sky fairy in the sky you have never seen, Unbelievable!!! DIRTY HARRY WEEK ON AMC, THAT IS WHY YOU SAID THAT.

  21. 4:11

    Go ahead

    Make my day !

  22. 424 well do ya punk?

  23. 4:11 - Seriously, what is your OBSESSION with Bush, TSA, Patriot Act, etc.? You keep writing the SAME things over and over. You're like the Jack Nicholson character in "The Shining". PLEASE GO GET SOME MENTAL HEALTH TREATMENT.


    A man, his son and wife become the winter caretakers of an isolated hotel where Danny, the son, sees disturbing visions of the hotel's past using a telepathic gift known as "The Shining". The father, Jack Torrance, is underway in a writing project when he slowly slips into insanity as a result of cabin fever and former guests of the hotel's ghosts. After being convinced by a waiter's ghost to "correct" the family, Jack goes completely insane.

  24. 526 what is with your sidestepping the issue?? Are you in such denial you cannot comprehend that those two things are the beginning of the police state, why keep sidestepping, acknowledge that they happened under bush, and we are now underway to a police state, similar to nazi germany.

  25. 411 The only one who makes any sense here. Yes Bush fucked us over with the so called patriot act, unnecessary wars, ludicrous spending.

    Obama is Bush on steroids. Where’s the change? Where’s the birth certificate ?

    Both sides are fucking us OK- now shut the fuck up!

  26. 6:00 you fucking tard - yobama; your messiah - the annointed one who gives billions to columbia
    billions to brazil; who has also given billions to pakistan and traded favors with hugo chavez
    has basically castrated our foreign relations to the point that now we are are in a lose/lose situtaion in afghanistan, iraq and libya has just appointed a panel to discover why dumb bastards like you are paying 4 bucks a gallon
    for gas while saudi arabia cuts production because the entire world is awash in oil

    this idiot created 32 czars that have a combined business experience of thirteen years
    yeah thats right fuktard 13 years! he bailed out the 15 largest corporaations in the US with billions of our money so they could conduct fiat
    transaction with china - meanwhile the small businessman burns with 132 newly enacted laws. rules and regulations against US manufacturing and today - his wench Timmy Geithner states that all you greedy, weathly people and businesses earning more than 250k - we're comin after you.

    This after his boss made 5.3 million in '09 and suckled another 1.2 million in rightoffs ripoffs and suckeasy's at taxpayers expense

    the time of the fat feeding the fatter has run its course

    your squeal will be the loudest as the slaughter begins in earnest 10/06/11

    have a great day

  27. your messiah bush the stolen election one gave billions to israel
    billions to egypt
    billions to saudi arabia
    billions to africa
    bush created 22 czars with criminal experience
    fucktards like you paid $5.00 a gallon gas when bush was president and you like it
    the amurkin public has had 200 laws that hurt them when bush was presidunce
    bush's wench greenspan was looting the tresury and helped us to get where we are
    I dont squeal but you do, you inbred hick and you and your gay family will squeal the loudest you jesus fucker
    have a shitty day

  28. 6:47 I never have a shitty day ! as long as there are morons like yourself on the loose; I
    feel obligated to be - like T.J. "upright and
    Stolen election? your shittin' us right? how in thee flyin' fuck do you think yobama mama got here? What is he doing right now? Is he seeing to the problems of the country? No/ well; where is he then?

    California you say? giving speeches you say?
    regarding what you say? Oh; deficeit reduction
    oh yeah - that's great mr. 15 trillion

    What's that? his war chest will be over a billion dollars? oh boy - 50 bucks at a time I suppose?

    Bush should've given a trillion to Israel and in the not to distant future - you'll see why

    Where was Egypt 3 years ago?
    Where is it NOW

    Where was saudi arabi 3 years ago?
    Where is it NOW

    $5 gas in your wet dreams was under bush - but no worries - you ain't seen nuthing yet pilgrim

    name 10 of the 200 that hurt me?
    name 1 attack after 9/11 that hurt me?

    you got me with greenspan; but timmy is same sperm

    I will NOT have a shiity day EVER as long as I know your out there

    Just waiting to be justified

  29. Look, it is ALL OVER, there is no recovering from this one. It is just a matter of time now. Keep stocking up on as much non perishable food, water and ammo as possible.

  30. 3.54 says,
    Newsflash asshole - when your CEO - your fucking CEO and when your out; she ain't your problem that very next day!
    But baby; when the new one walks thru that door - the fucking ship better get righted or the shareholders will have your balls in a vise."

    Another newsflash from 20008 'asshole" ,moron ,punk and whatever.
    Such tough talk!

    When the last 'fiscal conservative" big deficit spending "CEO' left the now bankrupt business he first arranged a bailout coup with the "CFO" Paulson and the bankers at the Fed,
    for the shareholders and bondholders in the financial sectors benefit at the taxpayers expense.

    It was time up for the dead Ponzi.

    The old CEO walked ,bonuses intact.

    Declaring the account books and "Fundementals of the economy are sound".

    The new "CEO" is merely a receiver and administer and manager of bankruptcy ,trying to salvage the situation of an insolvant mess as best he can with a dying dollar.

    Trying to print paper profits for a recovery of the ponzi

    You are confusing the role of a CEO having the past ability for creating real profits in a war economy for shareholders ,with the manager of a bankrupty under the impractical terms arranged by the last CEO before he left the office.

    Perhaps you believe the old CEO Mental as anything Party story ,that the "Fundamentals are sound" and the new CEO now had a real easy task of righting the Ship of state, Titanic .

    But there are no real profits left only money printing.

    And the new manager "CEO" is doing a good job at that ,thanks to the bailout arrangement with the old CEO, CFO at treasury and the banksters made by the old CEO before he left the already collapsed building.

    Somebody’s balls are indeed in a vice and it is not the shareholders and bondholders, but the middle class losing their savings as well as many working people still unable to find a decent wage under the 'left" food stamp
    administrator of corporate State capitalist “Austerity”

  31. And lee Iacocca as american slash and burn CEO hero ?

    Obamas a fan of iococca and government bailouts in the Auto industry like at GM too.
    1979 Chrysler bailout
    Realizing that the company would go out of business if it did not receive a significant amount of money for a turnaround, Iacocca approached the United States Congress in 1979 and asked for a loan guarantee. While some have said that Congress lent Chrysler the money, the government only guaranteed the loans. Most observers thought this was an unprecedented move, but Iacocca pointed to the government's bailouts of the airline and railroad industries. He argued that there were more jobs at stake in Chrysler's possible demise. Iacocca received the loan guarantee from the government, whose decision caused controversy.

  32. jesus fuckers always have a shitty day, they are controlled and stupid suckers
    mr 12 trillion in debt when he left office loser bush
    1 patriot act hurt you, 2 tsa breaks your fourth amendment
    3 bush and cheney lie us into 2 unwinnable wars costing you and I taxpayers Billions, lower standard of living for all us citizens
    4 made torture legal, now using it on us citizens ie bradley manning us military man
    5 passed nsa spying laws, all cell phones, pagers, internet all tapped without warrants
    6 securities fraud committed by kenneth lay, top contributor to bush election
    7 took away oil companies regulations leading directly to the gulf oil spill, how it hurts you, bad seafood and deadly chemicals in water air and food if you live anywhere near the gulf
    8 tried to outlaw abortion, but failed, you should have been an abortion, would have saved your family alot of heartache.
    9 no children left behing, which left all children behind, with our scores in math failing more than ever under loser bush, the law should have been called no childrens behind left alone as bush was a pedophile
    10 the clean air act, which actualy let his buddies in big business polute the air more, which you now breath

  33. I think 7:55 has a leaking oil pipe in his brain...

  34. 938 has a brain block, can't understand facts, but he does not let them get in the way of his denial. What is the difference between a Christian and a Muslim?? They are both insane, but the christian does not wear a funny hat!

  35. It's funny though - if he thinks bush was such a loser and hussein obama is such a winner

    why does not hussein obama repeal these dreaded
    acts instead he piles on more and is now sending armed predator drones into Libya

    In case you can't count 15 Trillion is a little
    larger than 10.7 which is what it was when bush

    4.3 Trillion dollars is more money than 80% of
    the worlds countries GDP

    Combined - and trust me, you ain't seen nothing yet

  36. Conservative AvengerApril 22, 2011 at 10:25 AM

    6:00 - I'm not sidestepping any issue. Bush is IRRELEVANT. He's GONE; he's HISTORY. If you're so concerned about the "horrible" Patriot Act then why did your beloved Obozo--our LEFTIST RADICAL MARXIST PRESIDENT--extend it? Why doesn't your Obozo curb the powers of the TSA? I'll tell you why--because he's LIBERAL PROGRESSIVE FASCIST; A TRUE BELIEVER IN FASCIST BIG GOVERNMENT AND THE NANNY STATE!! Side step that one you little schmuck!

  37. 7:55 - Has the Secret Service paid a visit to you yet? Your postings are seething with anger against a former POTUS and you clearly have a deranged mind. Men wearing dark suits and sunglasses and driving big black SUV's will be over shortly to ask you a few questions.

  38. 736 do you have experience with men in black? Looks as if you do, you know so much about it, I'm not scared like you are, you have your tin foil hat on, Yes you do!

  39. 8:16 - While I love tin and ALL the base metals, I LOVE SILVER the most!

  40. 8:16 has no further comment as hussein;s 2 nd in command was once again caught fast asleep
    while at a very important speech by the annointed one on the subject of tackling our national debt.

    What a joke What a farce

    Yeah - it took bush 8 freakin' years to drive the train off the rails

    Hussein has blown up the last bridge home in under 3

    You speak of middle class - shit man


  41. 3:25 - Are you you off your medications again?

  42. 3:25 - Are you off your medications again?

  43. yeah but we caught bin ladens 2nd like 4 times man, and his 3rd like 3 times, what a great job this country does at terrorism, same as the war on drugs is such a big success, NOT

  44. Wow, glad I clicked on the comments, best laugh I've had all week, 9:33 am's last sentence says it all. There is nothing else to say, all of the comments here have 1 thing in common that really matters. You all have identified what is know as "THE BEAST"
    Keep researching, if you goto church and "give" your money, I feel sad for you, everything you need to follow that path is the bible. Mud slinging against / for certain entities in forums like these is a good way to vent, but if you take sides, you still don't get it. It is all the same organization, every fucking bit of it, the conspiracy shit with ufo's, money, religion, symbolism, empires, 2012, nibiru, ect ect ect every bit of it. It is all to mislead you from who you really are. Times a tickin, better wake up! No I'm not religious. IM AWAKE !

    Buy more silver and gold, stop giving your money to Jesus, I dont think he needs any. If you wanna help out your community there is much better ways. Stop watching mainstream media, its all a fucking circus. STOCK PILE ESSENTIALS, WHAT? you took your tax return and bought a big screen tv, what a dumbass you are, when chinamart dries up you gonna throw your new led lcd in the over and feed your kids?, Better get back to basics, real, fucking, quick, cause its coming. You know the feelings you have for your kids?, Think of your unprepared neighbor thats been laughing @ you stockpiling for the last year or so? Think he's not gonna "do what it takes to feed his kids" and I'm sure your neighbor isnt sweating it because he's a superstar hunter / gatherer / fisherman, so he has nothing to worry about! Shiiiiit, probably works @ Pizza Hut as a manager, and is lost when the pepperoni truck doesnt come on time to his store. Think he's gonna make it? Nope, but his good ol' buddy neighbor that he's been laughing at has shitloads of food, I'll bet he'll gimmie some of his "Hi Neighbor" ........What you gonna do. You vs. him.......Hope you got plenty of firepower, but you wish you would have bought that .45 ACP Springfield, instead of a PS3. I look at it like this, if you have warned and warned and warned your neighbors and they snickered, when SHTF, fuckem. Because if you dont have that mentality, your fucked!, your kids are fucked, your spouse is fucked, There is nothing else to say but

  45. 6:46 I agree with most of what you say, disagree sligtly on the church issue for this reason:
    Churches in this country are just like everything else; extremely diversified & all too
    often someone makes a very broad reference to
    "the church" and everyone has their own mental image of what that means to them.

    Let's face it - a 50 member Luthern congregation in Vermont is a far cry from
    Reverend Wright and his 3 thousand or "the
    hour of power"

    Small neighborhood churches do a tremendous
    amout of good for the community and you will
    be hard pressed to find any other organization
    that does so much with so little money resources
    as most of these helping hands are donated free
    of charge and using their own finances.


Everyone is encouraged to participate with civilized comments.