“Under the gold standard, a free banking system stands as the protector of an economy’s stability and balanced growth… The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit… In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.”  Alan Greenspan

Last month, when asked about bit-coin, the old chairman stated… “In order for currencies to be ‘exchangeable’ they have to be backed by something,” A truly remarkable statement when one considers what gold bugs know and all other nations of the world recognize in that the ‘almighty dollar’ is no longer exchangeable because it is backed by nothing.  Astute individuals and other nations no longer possess a ‘full faith and trust in the United States’ or an ounce of trust in the U.S.  Can you blame them?  Greenspan is now touting his new book in the belief that the ignorant populace will hand over their even harder earned money for its purchase.  I suspect many will as Greenspan was once the rock star of the banking world but today he seems a fool!

Remember just seventeen years ago on December 5, 1996 and fourteen pages into his infamous speech, Greenspan posed his famous rhetorical question, “How do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?  We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs and price stability.”

Alan Greenspan was often misunderstood so re-read this carefully.  What he is saying exactly is that, “Central Bankers are not concerned if a bubble does not (or does) harm the people and without a gold standard there is no way to protect savings from inflation.”  Now you know why Central Banks and their hacks need to go!

During 2007 and 2012 $500 Billon rolled into the stock markets and $1.4 Trillion into bonds over that same period.  This year alone during 2013 another $500 B will has been rolled into stock market as the markets continue a frenetic “irrational exuberance” pace with Q-Infinity pushing it even higher than K-2 or Mt. Everest!

“Irrational Exuberance,” was the beginning of the initial 1996 stock market crash through the mere utterance of these words.  Today, another more major than minor stock market crash looms, reminding us that all speculative bubbles like that of the 1990s and 2008 must end and badly!

If you recall Warren Buffet’s famous words and reverse them today they are, “Be fearful when others are greedy and greedy when others are fearful!”  Now is just the time to be leery of the markets.

The Federal Reserve Bank, Bank of England, The International Monetary Fund and other national banks are but private central banks that possess total control over our financial system.  These banks were designed to profit off the world’s labor force and in their doomed, end days, set up the world’s populace to steal the entire net worth of every ordinary individual.  The end purpose will be to use that wealth to build a prisoner welfare state engaging us in endless wars for the Military Industrial Complex and corporate profiteering!

The New Year will bring even more blight as all the same problems and most assuredly new ones, as nothing is ever fixed properly but jerry rigged for the moment, will surface.  The debt ceiling will be back again in 2014 with end of life support threats looming.  As always happens when countries get too deeply in debt their country declines morally, ethically and economically.   Most problematic is our country with huge entitlement promises, lots of takers, illegal immigrants and an aging retirement class which finds it still necessary to continue working and living exceedingly longer than their parents did in the past.  Few Americans have awakened as to just how cataclysmic these issues will have on the inevitable demise of the old U.S. standard of living.  Many have already experienced a loss in their standard of living and are hoping to recover.  In the future years the vast majority of working citizens will lose their standard of living as well. They will never see it coming until after it happens.

The U.S. is impossibly in debt and it is only the government’s slick tricks and cooking of its books before the dollar ultimately fails and other nations dispose of their dollars that will then wash ashore to the U.S.

Remember that no candidate in 2012 mentioned cutting entitlement or growth of entitlement spending.  Every American expects their promised entitlements and point at other group’s entitlements to be cut.  Each group wants what they believe has been promised to them in full, but the reality is that impossible promises can’t be paid in full.  So the promises must instead be paid in the currency of deception.  Inflation is their main deceptive key through counterfeiting the dollar and its debasement of real value to deliver in part on those promises and the other is the financial repression of real time interest rates and the stealing of income on savings.  Savers, predominately the retirees, no longer earn ANY interest on their savings and must resort to using principal to live on.   This is the abnormal world we all must learn to survive in.

How quickly one adapts to this new abnormal thinking before the collapse happens will determine how you and your family emerge from the devastation.  Today it doesn’t make sense to pay off your home in tomorrow’s depreciated dollars.  It doesn’t make sense to save in the bank when zero interest is a result and the potential of bail-ins are a new verifiable regulation.  http://www.fdic.gov/about/srac/2012/gsifi.pdf

Venezuela just announced a Cyprus type bail-in and American companies such as Ford lost $350 M and others like Mattel, Revlon, Mead-Johnson and Tupperware will undoubtedly lose millions more as they were unable to repatriate their dollars before the bail-ins

As in any scientific test the results guarantee one of these outcomes or a combination of several and ultimately all occurring in the upending financial meltdown.  The question remains for you and I how will each of us remain above the ships sinking hull when there is a
1.  Governmental default on international Treasury promises as well as debt promises to the U.S. population. This will include government pensions and social security as well as the 80 plus entitlements promised to the populace.
2.  Inflation or hyperinflation accompanied by an overt sustained depression.  We must import everything we need to survive and the dollar is no longer a desired fiat currency from other countries.
3.  Confiscation of pensions, retirement funds and bank accounts will be necessary in an effort to bail-in the banks.  The world governments WILL NOT allow the mega banking cartels to fail.  The chattel, a nation’s resource the working class people, will be robbed of anything they have acquired.

Protect your family and wealth by investing in gold and silver before the COMEX and the L.B.M.A. are emptied!  If you think it can’t happen, you may be the next fool!

Roxanne Lewis is a precious metals broker from western Colorado dedicated to educating others to DEFEND their family’s assets.  She writes weekly articles under her weekly BLOG and ARCHIVES articles of the past.  This website  features visible, up to date pricing every second from COMEX.  Find out why customers say, “You have the lowest prices on the internet I wish I had found you years ago and I won’t EVER use anyone else!”  She may be reached @ rlewis@whynotgold.com