In our previous post, we discussed the potential implications of another rate hike from the Fed. The central bank’s decision to raise rates another 25 basis points seems to have left many wondering about the bank’s endgame-and some have even gone so far as to suggest that the Fed needs to unwind the current system of fiat currency.
In a recent interview with Kitco.com, Ron Paul stated that Fed Chairwoman Janet Yellen should be working with the government to “unwind the system of fiat currency” instead of simply looking to shrink the bank’s balance sheet.
Considering this is coming from a former congressman and two-time presidential candidate, this is a significant statement and point of view.
According to the article, Paul stated “The Federal Reserve claims it can continue “tightening” –even though it is still leaving interest rates at historically low levels–and begin unwinding its balance sheet, because the economy is “improving” and “will continue to improve.” But that is only true if one believes the government-manipulated unemployment and inflation statistics which, for example, do not count the record number of Americans who have withdrawn from the labor force.”
Paul also believes that the country is approaching the next major meltdown, which could be caused by numerous potential catalysts including housing, student loans and automobiles.
Paul went on to state “Of course, the largest bubble is the government bubble, which will dramatically increase thanks to the administration’s planned spending increases on militarism abroad and make-work infrastructure projects at home.”
You can draw several conclusions from this statement. One being that the country is in such a state that the only way to stimulate the economy and foster jobs growth is to spend-and spend big. Unfortunately, when spending outpaces revenues, the debt bubble only increases in size-and the more it is blown up the hard it will eventually pop.
Although the country is not yet at the point at which paper currency no longer holds value, such a scenario could be closer than many care to believe.
That is exactly why it is so critical to diversify away from stocks-and dollars- and to begin doing so right now.
Now may be the ideal time to begin allocating to asset classes that can potentially increase in value during a dollar crises or stock market meltdown.
Now may be the ideal time to turn to physical precious metals like gold and silver.
These metals are considered by many to be the only true form of money, as fiat currencies eventually lose value over time and often fail.
If you do not already own real, tangible, hard assets like gold and silver, now is the time to get started. Doing so has never been easier.
Speak with an Advantage Gold account executive today about the potential benefits of gold and silver ownership. Our account executives are here to answer your questions, and can even show you how to work towards securing your financial future using your IRA account.
Don’t wait for the next major market meltdown, or for your hard-earned dollars to lose even more value. Explore your options for gold and silver ownership today. Call Advantage Gold at 1-800-341-8685 to get started now.Tags: advantage gold, fed balance sheet, gold, government bubble, interest rate hike, janet yellen, tightening