Think about it. You’ve seen in our investment community and some folks in your neighborhood, collecting gold. We need gold for manufacturing, electronics, some household goods, jewelry and on-and-on. What gold our locals and persons in the investment community are collecting, is a pittance compared to what our government is selling. Foolish, stupid; you bet, while China is buying tons and Russia has bought gold weighing more than the Statue of Liberty. We are selling to support our debt and we are printing so much money, it is becoming funny money. You’ve seen it; nations see our dollar as being unstable.

What do we do? We cannot lower interest rates anymore, because we are at “O”. This is wrecking havoc on our capital markets, depriving us of money for our productive enterprises and growth, thus yielding no new jobs. It is so bad, savings accounts in banks are getting .8 percent return and CDs 1.5 percent, with a ten-year CD now at 1.8 percent. This all punishes individuals who save via their banks and it also stymies growth in bank IRAs and pension accounts.

I listened to the State of the Union address. It was Keynesian policies all over again, i.e. tax and spend. Remember, there is never enough money when you are spending other people’s money. When the government is in control, it means the central banks delegate where capital will go. Historically, this kind of thinking means subpar growth and negative returns. The scale of our government debt is historic. Our wealth is being destroyed by Washington buying up our government bonds and taking wealth away from the private sector. This policy is destroying wealth.

Our Congress has considered allowing the yen and Euro to be circulated throughout our economy? Wow! Now, the stock market is doing great. Don’t count on it. In absolute terms it is still not up to where it was in 2007.

We need a gold commission, as advocated by the Republican Party. n

Where do we go from here? We have a president and others espousing horrific economic principles. It may not get better because many of our colleges are not teaching the principles of stable money. We citizens who see the writing on the wall, must be resolute and write, vote and pray for knowledgeable leaders who understand. This is a “war” folks, and China is winning it and Russia is getting back in the game. Before we have another catastrophe like the 1930s, we must try to g et back on some kind of gold standard and move forward that way.

Alan Cohick

Cogan Station