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Has anyone ever wondered how come the United States keeps such a firm hold on its gold bullion? Why is it that America keeps its citizens in the dark regarding the benefits of accumulating gold and silver? Yet the US government is in the business of minting and distributing silver and gold coins. Did you know China publically educates its populace as to the long-term benefits of owning these precious metals?

After France wanted all of its debts redeemed in gold, President Nixon was forced to close the gold window to the world back in 1971. Effectively stopping any further gold redemptions on American debt from abroad and ending the Bretton Woods Agreement. Currently America holds about 8,133 tons of gold bullion. That is around 2.4 times more gold held than any other nation. Germany is ranked as the number two nation in the world for gold reserves. Germany has more than 3,396 tons gold bullion.

What was the reason President Richard Nixon closed the gold window to the world? Furthermore, why were President Nixon and his cronies rejecting to exchange any more of America’s gold for US debt? The answer is crystal clear; The American leadership at the time already knew America’s gold was its only true form of money and a tangible asset. Several of America’s leaders back then actually had a brain.

They knew with all certainty the Federal Reserve notes already printed and in global circulation were now worthless. Reason being the dollar currency went from being pegged at ten percent gold, to overnight being attached to nothing. They also understood America’s debt was growing with the dollar, and it was unlikely these debts would ever be paid off. They even understood back then that as US debt and deficits increased, somewhere down the road the US economy could be destroyed.

Currently debt in America is at $16 trillion and rising. The only logical choice left for politicians and the Federal Reserve is to inflate the economy or watch it die. Currently a primary bear market is upon us. If fiscal uncertainties continue as they have been, and inflating the economy is rejected then the United States as you presently know it will no longer exist. Many don’t place their trust in Bernanke anymore, however he is no fool. Bernanke has held off on QE3 because it is clear this tactic has not been working at least up to this point, based upon QE1, QE2 and Operation Twist which have yielded nothing.

No amount of additional monetary stimulation is going to turn around the economy in its present state. A huge number of businesses are already either closing or un-able to earn any real profits. Unemployment numbers are well above 20 percent, if you look past the government statics and main stream news and start observing the U6 numbers. Bottom-line it’s now down to two tough choices; the economy either gets inflated to see another day or dies.

Should the die option play out; expect to see the bear market played out until the bitter end, as the United States enters into Great Depression number two. A country like America is just not going to sit there and stand for this. Expect the populace to engage in rioting and enter into a revolution. Should the inflate part play out; expect massive, no colossal amounts of money printing to be engaged by the Federal Reserve. In-time, this action will hyper inflate the economy similar too, or possibly even worse than, the Hyperinflation of Weimar Germany in 1923.

Could There Be a Different Way Out?  Yes there’s still one option remaining.

The Federal Reserve seems helpless in their fight to reduce or stop the deflationary forces that are currently impinging upon the economy. In actuality the world itself is currently deflating. The only recipe that can repair deflation is deflating the value of the currency itself. There is one additional option remaining that will probably never be considered by those in power. But none the less it could work if the politicians and Fed had the guts to carry it out.

Remember America’s giant stockpile of gold bullion? There is around 8,133 tons of it held up inside America’s vaults. The fix here would be to substantially increase the price of gold overnight. Back in 1933 President Roosevelt raised the price of gold from $20.67 to $35.00 per ounce by empowering the “unilateral edict” in a bold attempt to re-inflate the economy.

The net result of suddenly increasing gold’s price drastically, would cause the dollar to devalue quickly, by a very large amount. At that point the dollar’s value would suddenly devalue. All the US debt would now become very manageable. At this point all the debt could either be paid off or properly managed.

The impact of this action would also immediately affect all the remaining fiat currencies around the planet. In days, the world would see a new cheap dollar that would devalue all fiat currencies in existence. Now all indebted nations would be able to manage and pay off their own debts. The dollars devaluation would allow everyone a new start.

In this scenario people who still are holding fiat currencies would be flat broke over night. Meanwhile those who have accumulated gold and silver would see their net worth increase un-told times overnight. Don’t be caught on the losing side, be a winner and start accumulating your own physical gold and silver today.

Tom Genot -

Informational news, books, articles and videos on investing in gold and silver and where the best places are to buy it. You will also find informational resources to educate you on alternate forms of investing and information on preparedness, for preparing and protecting you, your family and your assets from the pending economic crises and destruction of the US dollar. Author Tom Genot provides information and resources helpful to everyone. Insure you're prepared, while time is still on your side. Check us out at www.coinbullion.net.