Britannia Radio

Weekend Edition Tim Geithner has guaranteed rising gold prices Saturday, October 23, 2010 At the beginning of the American War of Independence, the Continental Congress decided to print money – the Continental. The value was supposed to be based on the Spanish dollar, the famous "pieces of eight," which equaled eight silver Spanish reales. The Continental Congress intended to print 2 million Continentals. It soon realized it didn't have enough to pay its debts (sound familiar?). So by 1779, the congress had printed more than 242 million Continentals. The British waged a counterfeiting campaign, compounding the problem. By the time the Continental Congress stopped printing them in 1781, it took $168 worth of Continentals to buy a $1 silver coin. Hence the old saying, "Not worth a Continental." The Spirit of the Continental lives on in today's U.S. dollar… The Federal Reserve came about in 1913, largely as a political response to the Panic of 1907. Among the Fed's stated goals today are "conducting monetary policy… in pursuit of maximum employment, stable prices, and moderate long-term interest rates," and "maintaining the stability of the financial system." ----------Advertisement---------- A secret website Wall Street doesn't want anyone OVER AGE 55 logging onto This 'underground' Internet site could help you collect as much as $653 per week in extra retirement income… Without touching regular investments… And without going through brokers and money managers ever again. Click here for details. --------------------------------- I'll let you judge how stable the financial system is and how the Fed's doing at maintaining "maximum employment, stable prices, and moderate long-term interest rates." But the monetary policy? The Fed has done quite a number on your money: What cost $1 in 1913 now costs more than $21. What cost $1 in 2009 would have cost about $0.05 in 1913. Hence, the Federal Reserve has reduced the value of the U.S. dollar by approximately 95% during its 97-year tenure. And the Fed's not done yet! Not by a long shot. In fact, Tim Geithner told the whole world the devaluation of the U.S. dollar is an absolute certainty now. He didn't put it in so many words… They never do. But according to Reuters, he said, "It is very important for people to understand that the United States of America, and no country around the world, can devalue its way to prosperity and competitiveness. It is not a viable, feasible strategy and we will not engage in it." Geithner sounds a lot like a child denying the inevitable. I learned a lot about this sort of thing growing up: "We will not devalue the currency" lives in my mind next to, "I'm not getting in that bathtub," "I'm not eating those vegetables," and perhaps most memorable of all for me, "I'm not going to bed now, because I'm not tired." Every time I uttered that last one, I was sawing logs within minutes. Maybe after its rapid rise, the gold price is in for some type of correction. I don't know, and I don't care. The U.S. Treasury Secretary has virtually guaranteed gold will increase in value in the coming years, how can you afford not to own it? The government is manipulating the gold price; and it's determined to shove it straight up. We made our monthly trip to the coin shop this week, adding a little more gold to the pile. I remember when the gold price posted on the wall at the coin shop was a three-digit number that started with a "3." Now, it's four digits with a "1" in front of that three – as in $1,345 (which it hit this week). I used to think each month about which stock I'd buy. Now, I can't wait to put it all into gold. (Must be a sign of the top!) I only want to own two things right now: great, cash-gushing businesses (preferably those that pay a rising stream of dividends)… and gold. If you're looking to buy gold, just knowing reputable dealers is a good place to start. But if you want to take it a step further, we recommend you read our Gold Investor's Bible… Since we started covering gold in 2003, we've become friends with the best gold analysts, gold dealers, and gold traders in the country. And they've all shared their best secrets with us. We want to pass those secrets along to you… Our gold book shows you how to collect dividends of 20% a year on your gold and how to save hundreds, even thousands, of dollars when buying gold bullion. We also explain how to avoid paying tax on your ETF sales and how to legally take as much gold as you want out of the country. In short, we tell you every trick and gold investing strategy we've discovered over the past decade. We are currently offering our Gold Investor's Bible for free (you just pay $5 shipping and handling). To receive the book, click here. Regards, Dan Ferris Editor's note: The Weekend Edition is pulled from the daily S&A Digest, produced by Stansberry & Associates. The Digest comes free with a subscription to The 12% Letter. To learn more about our research, including a website that can earn you up to $653 per week for the rest of your life, click here.