Inflation has now been institutionalized at a fairly constant 5% per year. This has been scientifically determined to be the optimum level for generating the most revenue without causing public alarm. A 5% devaluation applies, not only to the money earned this year, but also to all that is left over from previous years. At the end of the first year, a dollar is worth 95 cents. At the end of the second year, the 95 cents is reduced again by 5%, leaving its worth at 90 cents, and so on. By the time a person has worked 20 years, the government will have confiscated 64% of every dollar he saved over those years. By the time he has worked 45 years, the hidden tax will be 90%. The government will take [in purchasing power] virtually everything a person saves over a lifetime.– G. Edward Griffin
I note that both gold and silver are drifting lower in Far East and early London trading as I put the finishing touches on today’s column. Volume in both metals [as of 4:09 a.m. Eastern time] is already pretty decent. The dollar is up about twenty-five basis points as well. As I’ve mentioned several times, both precious metals are overbought… and the dollar is oversold. A reversal of these conditions, regardless of whether they’re warranted or not, may be in the cards. We’ll see.
For the past month or so… and for whatever reason… I’ve noted that Tuesdays [the cut-off for Friday’s COT report] have been big price movement days in both silver and gold. So far, they’ve all been to the upside… so I’m more than interested in seeing what today’s price action will bring.
Not that it really matters, because as I’ve said many times, the ever-increasing prices for both gold and silver would hit the odd speed bump along the way… and it’s important not to get panicked by the day-to-day price movements. I’ll still be ‘all in’ regardless of what gold and silver prices do today, next week… or even next month. I’m just not smart enough to trade in and out of this market… especially at this point in time.
I hope your Tuesday goes well… and I’ll see you here tomorrow.