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Issue Analysis

    The Dollar Sailing on the Titanic

    06/29/2011

    Do you trust the government with your money?  Perhaps a better question to ask is do you trust Ben Bernanke and Timmy Geithner with your money?  If you answered yes to any of those questions here is an interesting little fact for you.  Did you know that the value of our currency has decreased by 95% since 1913, which was when the Federal Reserve was created?  There are some who have come to understand that our fiat based currency is hardly worth the paper it was printed on, which is why people have started to buy gold and silver.


    Some of those people include Senators Jim DeMint, Rand Paul, and Mike Lee who have just introduced the Sound Money Promotion Act.  This bill would remove the tax placed on gold and silver coins that have been declared legal tender by the federal and state government.  As the Federal Reserve ends its QE2 program, and foreign investors begin to reduce their holdings of U.S. debt, economists fear that the Fed will have to pursue more aggressive quantitative easing measures.  This purchasing of our debt by the Federal Reserve will inevitably lead to higher inflation, which means that the value of the dollar will continue to decline. 


    This bill serves as a life preserver being thrown to the people from Washington, and I suggest we take it.  Senators DeMint, Paul, and Lee know that the dollar is going to continue to be devalued, and if this legislation were to be passed the price of gold and silver coins would temporarily drop, which would provide a temporary bull market for those who would be interested in purchasing gold and silver coins.  I urge you to contact your Senators and tell them to support the Sound Money Promotion Act.