Instead, allow me to attempt a compelling and strategic discussion regarding the importance of hands-on gold and silver ownership, based solely on two recent news stories:

• Texas University endowment holds almost $1 billion in gold bars.
   
• Standard & Poor's lowers its outlook on American long-term debt.

In April of this year, S&P warned the Obama regime that there is a one-in-three chance that the debt rating may face further cuts within two years if the U.S. cannot find the will to get their house in order.

After the S&P lowered the boom on U.S debt, it did not take long for the anti-gold, pro-dollar meme to go viral on the Internet.

It must be a lonely room right now for the beleaguered pro-dollar crowd, as their pitch is falling flat.

One very telling quote from an economist at the Bank of Tokyo-Mitsubishi UFJ Ltd., "For investors there is nowhere else to put their money as the U.S. still has the strongest, deepest, most-liquid markets in the world. There is no alternative."

The only lesson I can come away with from the "there is no alternative" comment is yet another solid confirmation that the detached and increasingly isolated banking community continues to lose relevancy as they stubbornly cling to their tattered and shabby fiat currency system. I can happily and proudly say; that many of my readers have all but abandoned this sinking philosophy! Yes, gold is just another currency, but one that stands as a trusted beacon of financial reality.

Inflation, the Beast is Loose and Being Nurtured by The Fed  

Rather than get into a nonsensical debate with any of the dispirited pro-dollar defenders, consider: As of 1998, a $100 bill will not buy as much as a $20 bill could buy in the 1960’s. (Thomas Sowell).

One more sobering statistic; in 1999 it would take $1 trillion to buy all of the gold and silver ever produced over the last 6,000 years. Today it would take $6 trillion, and that number is going up every day! Reason: paper money, if not yet technically worthless, is well on its way.

The strong whiff of inflation that we are now experiencing will rapidly accelerate to a cloying stench. I deeply suspect that all of the nattering by the current gang in Washington is only a media inspired exercise in primp and posture. In the end, the debt ceiling will be raised; more dollar bills will be printed and the worth of those freshly printed dollars will continue to erode.

What this means in the short-term is inflation you can smell, touch and taste! The price of cotton, cocoa, coffee, wheat and corn are all on the rise. In the medium-term if inflation is left unchecked, it will morph into galloping inflation and perhaps even hyperinflation; thereby destroying the standard of living America has come to take for granted. To my fellow Canadians, do not for a moment think that when America goes down we will not be affected. The U.S. is our largest trading partner and we will be seriously impacted!

Anyone who has paused to consider the dictatorial and insolent Keynesian Theory for even one mad and irresponsible moment recognizes the drone of their bogus mantra; inflation might be the bogeyman, but deflation is a civilization-destroying monster. Avoid deflation at all costs!

Never mind that deflation offers a hard and unsparing opportunity to purge all the bad decisions made by government and business. History has proven time and time again that a period of economic catharsis though unpalatable, is necessary, unless of course you are connected to the government apparatus. Throughout history, elected leaders and despots alike have succumbed to the dread fear that deflation would destroy their in-country system of government. Inflation on the other hand, allows government to kick the can down the road; thus preserving their system of government (along with their jobs). In America, this mechanism of deliberate economic avoidance has worked since the days of the Great Depression. Like every slick confidence game – the con only works until it (suddenly) stops.

The Gold Party - First Seated, First Served

 If after all the evidence there are still some of you who continue to stubbornly cling to dollars and dollar denominated assets, get ready to watch inflation reduce dollar-based life savings to nothing, almost overnight. You simply cannot continue to nurture and foster hope that the dollars in your bank account are going to retain any future value. Your future financial safety depends on gold.

A word of caution; do not take forever to trek toward the golden beacon of reality. While most Americans are only now beginning to understand the full impact of their financial fragility, there are central banks in other countries that are fully aware of the ascendancy of gold as a global currency. As reported earlier in the year, German safe deposit boxes are at a premium, with most already having been spoken for and packed with gold bars and coins. Inflation in Europe is twice that of in America, so demand for physical gold continues to rise as both central banks and individual investors are attempting to stockpile more of the yellow metal.

The Most Important Reason to Own Silver

As the price of gold continues to move higher, we may very well wake up one day to find out that purchasing gold with U.S. dollars is a non-starter. It happened in the past and history could certainly repeat. With the trust in paper money plummeting, it only stands to reason that we may return to assessing financial security in a different way.

Owning physical gold will become your measure of wealth and security, while silver will become the people’s currency to obtain goods and services. And if you want to easily, and without haggling over the worth, or lack thereof of paper money, you will be using silver to purchase gold; thereby adding to your measure of wealth. There is nothing to fear by gold ownership; as it is only a matter of time before smart Americans elect a federal government that will lead us back to a system that is based on gold - more than likely, a system that utilizes gold bonds. 

Our (continued) Solution? Front-Run the Governments of the World

The business of gold begins and ends with a common sense approach; accumulate as much physical gold and silver as possible. Familiarize yourself with the gold standard; the world may once again be forced to enjoy a system based on financial reality and responsibility.

To accelerate the process and potentially maximize your gains, embrace the opportunities of investing in the junior gold and silver markets. The method and the goal is simple and straightforward; initiate a realistic due diligence program, invest in a company that follows the precepts of the business of gold; realize paper money profits and swap the paper gains into the reality of holding physical gold and silver. As per usual, be prepared to buy on the dips; as both gold and silver prices will fluctuate, and in the case of silver expect mighty corrections along the way to record highs.