Darned if they do Darned if they don't

There are currently 2 avenues our federal government can take at this pivotal point in the economic meltdown. One is to bailout the failing banks at the tune of 700 billion dollars reassuring all investors including foreign ones that our economy and our dollar is wholly backed by the US government, or as some people are saying let all financial institutions fail and let the chips fall where they may. It is after all a capitalistic society right? The stronger better companies will prosper leaving only the well run companies to succeed.

The saying"your darned if you do and your darned if you don't" pretty much sums it up. We are currently in real trouble. There is talk of a "recession" notice how they avoid the word "depression" like the plague, and no matter which course is taken there is no silver lining.

If we flood the market with 700 billion dollars that we didn't have a month ago (that's right, run the printing presses) we will devalue our dollar even further than it is now and inflation will continue to grow.

If we don't do anything and let the financial companies fail then this could be perceived by foreign investors and our financial monies are not backed by our government which would lead to a exodus of foreign money being invested into the US financial institutions digging us ever deeper into a murkey depression of job loss and inflation and savings being turned to worthless dollars.

Golds value price will definately benefit in both scenarios since it will appreciate due to dollars value being lowered through more of them being produced, and the dollars value being viewed as worthless and not backed by our government leading foreign investors to shy away from our dollar.

Government bailout more like government copout!

Well folks the house of cards in the financial markets have started falling and we are in trouble according to all the great thinktanks and politicians. Where were they the past 5 years when people saw this coming?. Polticians and the great financial gurus never see crisis coming. Think about it... the great depression, the 1987 stock market crash, the recession following 911. Now its happened again and what is their answer? To dump 85 billion dollars into failing banks while we already have a deficit approching the trillion dollars mark! WRONG MOVE FOLKS! In a captalistic society we are suppose to let only the companies with a strong foundation survive. These companies were failing due in part to borderline criminal practices of giving loans to anyone who would take it. Sub prime sums it up. Well now all this money they are going to dump into helping these companies will flood the market with even more dollars which will bring down the value of our dollar. Inflation is a sure bet. Gold prices have already risen approx 100 bucks in the past couple weeks and will surely rise further as we see this crisis unfold.

Remeber that all societies built on a currency other than gold or silver for that matter follow exactly the same pattern eventually. They produce a fiat currency(one that cannot be exhanged for gold or silver) and keep producing this fiat currency when the masses realize the fiat currencies buying power is worth less and less as time goes on. As the fiat currency value falls it brings down the economy and the governements solution is always to pump more money into the system by printing more. This will always bring the value down even further. Gold and silver prices always rise in this situation just like they are now. Ive read and heard statements that gold prices will hit over $3000 per ounce in our current financial crisis. I truly believe gold and silver are the secure place to put my money in these terrible times.

Once again are government has done a bang up job.! Hows about cutting all of our congressman and senators salaries or having them use the same type of pension/401k plans we have to use. Ill bet this crisis would not have happened then!

Key factors contributing to golds worth as a currency

Gold has been valued and honored as the money for all ages thoughout history for reasons involving the following:

1) Durable- gold will not rot, break crumble or decay. It does not tarnish, is unnaffected by water air and even most acids
2) Convienience and portability- A gold owner can carry a lifetime of wealth in his pockets. Other forms would be too heavy or could not be carried at all like realestate.
3) Inherent value- Multiple uses rangin from technological to decorative.
4) Governements cant print gold!

The economy is strong right!??

After todays anouncement "WASHINGTON (AP) -- Treasury Secretary Henry Paulson said Monday the American people can remain confident in the "soundness and resilience in the American financial system."
Briefing reporters at the White House, Paulson said he "never once" considered it would be appropriate to put taxpayer money at risk to resolve the problems at Lehman Brothers." those of us who are into precious metals can really see our research coming to light. This is really scary. We all know that the cycle for the destablishment of any fiat currency starts with the politician wanting to appease 2 main groups. They consist of the people who do not want taxes to increase and the other who want more governemental programs in our life. The political leader wishes to be liked by everyone for obvious reasons mainly job security, so will bow to both groups. He will not raise taxes even though they are needed to pay for all the programs and debt out there and create even more governmental programs. HOW??? They borrow to finance all the programs and no new taxes being implemented and then you guessed it create new currency to cover deficit. Inflation happens from this cycle all the time. This bailout of these banks in my opinion will be a major contributor to inflation weakening of the dollar through the fed winding up the printing presses to bail out these banks. Again Im betting more banks will cry to government to help and maybe even the major corps will get in on this. We are in for a very uncertain economic time unless you are participating in investing in precious metals.

Any comments are much appreciated.

Fannie Mae and Freddie Mac bailout

The government has set a precedance now for a dominoe effect in banking and probually corporate bailouts leading to an ever weaking dollar. Where are they going to get this money to bail out all the defunk loans these banks had on there books? You got it. Print more. Which will inturn flood the market with more dollars decreasing purchasing power. Real Smart Move! Look in the news for more and more banks to require this help from Uncle Sam.
It is my beleif that this scenario will play out not only in financial banking sectors but move to the big "American" corporations, the likes of GM, Ford, etc. I beleive these big companies will need to get help from the governement due to the mishandling of the monies needed for the extrodianry pension payment plans they promised the hardworking employees. These are the people that will be getting hurt the most. Not the CEOs who still got their million dollar bonuses.
Precious metals prices will increase with respect to the decreasing value of dollar so buy while prices are cheap. As of this post price per ounce is approx. $765.
Gold Bless Us All