Written by Damon Geller
People get very emotional about major elections, particularly when it comes to how elections will impact their money. Yet the scary reality of our modern political system is, your vote doesn’t matter when it comes to your money. While there are many systemic problems in banking, taxation, trade and monetary policy, none of these systemic problems changes in any meaningfully way by who controls the House, Senate or Presidency. No, the sad fact is, modern America is bought and sold by the banking industry, at the command of the Fed. And regardless of which party controls Congress after the November election, they won’t hold the real power in Washington. Neither the Republicans nor the Democrats have done anything in a generation to stop America from launching off the fiscal cliff. So if you want to protect your savings & retirement from the impending global crisis, you’ll need to do more than cast a vote.
The Real Power in Washington
When it comes to money, there is no democracy or freedom, and there are no nations or citizens. Money is ruled by a plutocracy of financial institutions. They make the laws, they rule the world, and they move or remove anyone that doesn’t promote or support their agenda. And in order for them to survive and achieve “growth,” they rely on the constant accumulation of new public DEBT. In a monetary system where every dollar is created from debt, the system becomes a Ponzi scheme and only works until it collapses. This is illustrated throughout history, as every civilization and every paper currency has imploded under huge debt loads and a systemic lack of solvency.
Debt Has Doomed the Nation & the Dollar
In January of 2001, when Bush took office and Republicans controlled the Congress, the national debt stood at $5.7 trillion. Within 8 years, the national debt had ballooned to around $11 trillion – a doubling of U.S. debt in 8 years! Obama came into office in 2009 promising hope and change. But did he really change anything in terms of our debilitating national debt? Absolutely not. At the command of the Federal Reserve, our national debt will skyrocket to around $25 trillion by the time Obama leaves office. In short, the Fed will have increased the national debt 5 times in the span of two presidencies — regardless of which party was in power!The chart below shows the dramatic rise in U.S. debt since 2001:
Everyone knows you can’t stockpile $25 trillion in debt without serious consequences. What serious consequences? The chart below shows the alarming loss in value of the U.S. dollar versus other currencies since 2001:
As you can see, the U.S. Dollar lost 33% of its value versus other currencies since 2001!
Debt Has Skyrocketed Gas & Gold
As the Federal Reserve drove up debt to record numbers, what happened to gas & gold? First, take a look at how gas prices have skyrocketed since 2005, right along with debt:
- 2005 US Debt = 7.6 trillion | Gas = $1.82/gallon
- 2006 US Debt = 8.1 trillion | Gas = $2.28/gallon
- 2007 US Debt = 8.7 trillion | Gas = $2.40/gallon
- 2008 US Debt = 10.7 trillion | Gas = $2.90/gallon
- 2009 US Debt = 10.6 trillion | Gas = $2.75/gallon
- 2010 US Debt = 12.3 trillion | Gas = $2.80/gallon
- 2011 US Debt = 14 trillion | Gas = $3.15/gallon
- 2012 US Debt = 15.2 trillion | Gas = $3.40/gallon
- 2013 US Debt = 16.7 trillion | Gas = $4.15/gallon
- 2014 US Debt = 18 trillion | Gas = $4.50/gallon
And what about gold? The chart below shows the tremendous increase in gold’s value since 2001:
As you can see, gold increased over 5 TIMES in value since 2001! And this is including gold’s correction in 2013. So not only has gold increased 5 times since 2001, it’s once again a great value at these levels.
Where Are We Headed?
The U.S. Treasury tells us that the U.S. debt will reach $28 trillion by 2018, regardless of which party takes power in November or who wins the presidency in 2016! That’s a staggering 58% increase in U.S. debt from where we are today. Why will this happen? Because neither party has shown any serious commitment whatsoever to reduce government spending. And this will only result in further destruction of the U.S. dollar until the dollar finally collapses and ceases to be the world’s reserve currency, just as ALL global currencies have failed throughout history.
And based upon Treasury’s debt projections, here is where gold and gas are going:
- 2015 US Debt = 21T | Gold = $2,600/oz. | Gas = $6.00/gallon
- 2016 US Debt = 22.7T | Gold = $3,100/oz. | Gas = $6.75/gallon
- 2017 US Debt = 25.5T | Gold = $3,575/oz. | Gas = $7.50/gallon
- 2018 US Debt = 28T | Gold = $3,800/oz. | Gas = $9.00/gallon
As the Fed rockets us to $28 trillion in debt, these projections put gold at nearly $4000/oz. by 2018!
Do More Than Vote
The reality is, the fundamental forces that have caused gold to triple since 2001, and which are still accelerating, are not embedded in politics at all. Those forces are mainly related to monetary policy more than anything, and monetary-policy decisions live outside the box of any political control. Interest-rate policy and monetary stimulus are controlled by a private banking institution – The Fed – which was in control during Bush, Obama, a Republican-controlled Congress and a Democratic-controlled Congress, and will be in control after this election and the next presidential election. Fed policy has never been rooted in politics and politicians have never had any control over the Fed, regardless of what side of the aisle they stand on.
So if we get a new congress or president, will the political games end? No. Will our debt problem go away? No. Will we get growth all of a sudden without all the “stimulus” spending and entitlements the Republicans say they want to end? No. Will the growth come even if Obama keeps spending and the Fed keeps printing? No. And most importantly, will The Fed be able to raise rates regardless of who wins, and will the debt trajectory change? No and No.
We will be at $28 trillion in debt by 2018 according to the U.S. Treasury. The Fed will keep printing money and rates will stay in the basement for as far as far the eye can see thanks to our massive debt and the need to service it. The writing is on the wall. This election will have zero impact on the current trajectory of the price of gold, and gold is moving much higher. Gold is math and mathematics is a science. Politics is not. So if you want a new congress, vote. But you want to protect your savings & retirement, buy gold & silver. (Call 800-226-8106 to receive your free copy of Damon Geller’s popular book, “Rescue Your Money from the National Debt Disaster,” or see below)