The following transcript is from a recent interview with legendary investor, Jim Rogers:

King World News – 3/13/2010

Eric King: Is a day of more of a social breakdown rapidly approaching would you say?

Jim Rogers: Well, I certainly don’t want it. Nobody does anywhere, but what I can see is they keep making mistakes, and as you keep making mistakes ultimately the situation is going to be worse.

The economic and geopolitical situation will be worse, and so we as Americans are going to be more and more unhappy and that again is not a radical statement. It has always led to social unrest. We are seeing some now in the US. Other countries in the world have seen governments topple in the last two, three, four years by what’s going on. And I am afraid that the people in Washington are making it worse, and if it does get worse as I anticipate, that has always led to social unrest, throughout history, everywhere in the world.

Eric King: If you had to guess on the social breakdowns in the United States, what kind of a time frame would you give me as a guess?

Jim Rogers: Well, certainly within the next decade, I mean that would be easy to say, perhaps sooner. You know Eric I know people who insist that the US will have to default on it’s government debt in the next couple of years. That’s not my statement, I don’t know because I haven’t done the homework, but I do know people I admire who swear to me it’s going to happen. If that sort of thing starts happening, we have problems at the state level, the city level, and if the US government is in that kind of trouble, whenever it is, whether it’s the next two years or in the next ten years, it’s going to lead to problems.

Again, I don’t like saying it first of all, second, it’s just the way the world has always worked, not a radical statement. But if suddenly people cannot get food or cannot get jobs, especially you know, the America of this decade is not the America of the 1930’s, in the America of the 1930’s people were still disciplined, hard working, much more so than they are now. Now in the US, there is more of a, "you owe it to us mentality" than there was in America a hundred years ago, or eighty years ago. Again that’s not a strange thing, it’s just a historic fact and people with that current attitude are more inclined to be unhappy and do something about it than others.

Our study of past crises show that those who took action beforehand, were the ones that were able to be prepared.

     

"If you needed emergency coinage for any reason, if there was a true currency crisis, this (US Silver Eagle) has all the elements that you need in a currency crisis. It says that it’s one-ounce fine silver. One ounce is what they are hearing on the radio, what’s going to be repeated on MSNBC, CNN, Bloomberg, it’s gonna be every hour if there was a currency crisis, you’d be hearing the price of gold and the price of silver and they’re quoting one troy ounce is the price. So this is exactly what the guy down at the gas station is hearing." - Mike Maloney

     

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Same Problem, Different Country?

For those that study history the following recent article might have them sit up and take serious notice.

Citigroup Warns Customers It May Refuse To Allow Withdrawals

Business Insider – 2/19/2010

“Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change,” Citigroup said on statements received by customers all over the country.

We suggest an astute person compare what is happening right now with what happened just a few years ago in Argentina:

If you are curious about what a monetary crisis could look like in your country we encourage you to simply look for clues from other countries economic pasts, those that have already been through such a phenomenon.

This article offers a quick glimpse at a modern history example. Here is a brief recount what occurred only a few years ago in Argentina:

In July of 1989 – Argentina’s currency at the time was going through a hyperinflation. The austral (image below), recorded a 200% inflation rate in July alone, topping a 5000% rate of inflation for the year. It was for this reason that during the 1989 and 1990 hyperinflation peaks many Argentines began rejecting the austral as payment, demanding U.S. dollars instead.

To reign in ruinous price inflations, the government in 1991 adapted a new Argentine peso establishing a fixed dollar-pegged exchange rate (one Argentine peso per U.S. dollar). The initial aim of the measure was to ensure the acceptance of the new Argentine peso currency:

This 1991 enactment, the Law of Convertibility (La Ley de Convertibilidad), helped establish the peso and sharply reduce price inflation, restoring stable prices throughout the remainder of the 1990’s. This fact raised the quality of life for many Argentine citizens. As a result, many citizens could more easily afford to travel abroad, buy-imported goods at lower prices, or ask for credits in dollars at very low interest rates.

Meanwhile, Argentina’s government deficit spending remained high and public debts expanded rapidly but the country showed no true signs of being able to pay for their growing debt load. However the IMF (International Monetary Fund) continued to lend funds to the Argentine government while postponing scheduled repayments. The Argentine financial markets became saturated in dollars and foreign debt.

In 1999 Argentina’s GDP dropped 4% and unemployment levels were rising, a recession had begun. The economic downturn continued onward through 2000 and 2001.

In December 2001, the call on Argentina’s debts came forth, the government couldn’t pay their loans and obligations. Argentines becoming aware of the situation began withdrawing from their bank accounts preparing for the worst. Bank Runs had began.

To quell bank runs (citizens withdrawing large sums of paper currency from their bank accounts, and or converting pesos into dollars and sending them abroad) the government enacted a set of measures that effectively froze all bank accounts for 12 months, allowing for only minor sums of cash to be withdrawn. These government banking measures became informally known as the corralito – or crudely translated – an “animal pen“.

The citizens were livid at the rationing of withdrawals and the forced devaluations of their savings. As the country’s economic collapse took hold people took to the streets in mass, violence and vandalism ensued:

The vast majority of the public’s savings were caught in the financial quagmire (the “animal pen“) – they lost roughly 50% to 75% of their purchasing power.

In January 2002, after a full decade, the Law of Convertibility was finally abandoned. The Argentine peso plummeted in value going from a fixed 1 to 1 ratio with the US dollar, to as high as a 4 to 1 ratio. Effectively, this devaluation reduced the purchasing power of the Argentine peso to 25% or 1/4th of its 1990’s purchasing power.

The wealth transfer was vast and swift. The people’s savings were crushed:

1. http://en.wikipedia.org/wiki/Argentine_economic_crisis_%281999%E2%80%932002%29#Effects_on_wealth_distribution
2. http://www.aaep.org.ar/anales/works/works2004/Amado-Cerro-Meloni-04.pdf

There were some who understood what was happening and took action before the bank freeze occurred. Many of these folks moved their capital offshore before the crisis played out, they were thus able to more than triple their purchasing power over those who strictly held Argentine pesos.

This is what tends to happen during currency crises, there are many on the inside who not only duck debasements and or devaluations, they exploit it to their advantage.

Wealth transfers from average savers to financial insiders.

Those with direct access to foreign currency exchange floors or first hand access to the fiat currency printing press tend to have an advantage over the average worker and saver.

But Here’s the Key… You Don’t Have to be An Insider

Examine what happened to an Argentinean who purchased Gold or Silver when the recession was quickening and the run on the banks was commencing:

In 2002, once the Law of Convertibility was abandoned, Argentines who held physical Gold and Silver not only protected their wealth and their purchasing power, they enhanced it 3 to 4 fold:

Here Is the Secret:

• You don’t have to be an insider to protect your wealth during a currency crisis.
• You don’t have to be stuck in failing banks trapped in a financial “animal pen”.
• You only need to study history and take action so you are not condemned to repeat the mistakes of those before you.

Don’t let history’s rhyme and repetition steal your hard earned wealth.

Physical Gold and Silver are unquestionably the solution for us.

What’s yours? -> Take action while there is still time remaining.

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What’s going on in Greece?

Telegraph – Feb 7, 2010

The Guardian – Feb 7, 2010

Spiegel Online – Feb 1, 2010

What’s this all mean to Gold and Silver?

Free Gold Money Report – James Turk – Feb. 4, 2010

Why is the price dropping?

MineWeb – John Embry – Feb. 3, 2010

Meanwhile there are further reports of a lack of physical supply on the London Bullion Exchange:

GoldenJackass – Jim Willie CB – Feb 3, 2010

Folks, be sure to get physical Gold and Silver!

Mike Maloney recently visited Taiwan for the launch of his book in Mandarin!

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Remember… It’s Fact:

Every currency in the world is fiat or “faith based” meaning it’s worth only the value of the actual paper it is printed on. More people are learning this fact every day, confidence is eroding in the fiat currency system. History proves that for fiat currency… the final value of zero is inevitable!

“The credit boom is built on the sands of banknotes and deposits. It must collapse.” – Ludwig Von Mises

The solution to protecting yourself is simple. Secure a Gold and Silver foundation to your wealth. Owning physical Gold and Silver has been very lucrative over the past decade. But don’t take our word for it. The facts below prove that this is a Worldwide Event!

January 1, 2000 -> December 31, 2009

*** If you don’t see your nation’s currency above simply click the following link to perform your calculations -> http://www.xe.com/ict/ ***

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We are often asked to answer the following question:

“What will happen to (Fill in the blank —> euro, NZ dollars, AUS dollars, yen, pesos, reales, etc) currency if the dollar goes to zero?”

The answer over the long term is simple and it’s always the same:

Whether, it’s euro, yen, pounds, pesos, dollars, etc —> ALL present day currencies are not backed by anything tangible. Not a single one. This means they are all fiat currencies, they derive their value from a government fiat (declaration). None of them are directly redeemable for tangible items (like they used to be – for example: Gold, Silver, real estate, oil, etc). The fiat currency value formula is as follows: Fiat Currency INTRINSIC VALUE = PAPER & INK

Between Monetary Units, it boils down to 2 real choices… it’s:

The following excerpt is from Michael Maloney’s #1 Book “Rich Dad’s Advisor’s Guide to Investing in Gold and Silver“:

1957 Silver Certificate: (One Dollar in Silver Payable To The Bearer On Demand)

Modern day Federal Reserve Note: (Paper & Ink)

This has happened with ALL of the World’s currencies! They’re ALL fiat currency!

So What? What’s the Problem? What’s the Big Deal?!

This has been done thousands of times throughout history and Every Single Fiat Currency has Died over the long term. That’s right… Final Value = Zero… Zilch… Nada

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Below are some excerpts from a recent article by Tyler Durden of the financial blog ZeroHedge. This particular piece uncovers some of the latest discussions of regulatory reform in America.

According to this article the Security and Exchange Commission (SEC), along with the Group of 30, (Paul Volker – Tim Geithner – Larry Summers – executives from Goldman Sachs/JP Morgan – foreign central bank representatives – and Barney Frank) have been raising some interesting recommendations regarding Money Market Funds along with proposed changes in their legal supervision.

First let’s define a Money Market Fund according to the SEC’s website:

Excerpts from ZeroHedge 1/3/2010

ZeroHedge 1/3/2010 continued…

It sure looks like the same crowd that got us into this financial quagmire are working at this moment to change the current rules of the game via proposed regulatory reforms.

At GoldSilver.com we want our assets to be in places that this dangerous meddling cannot touch. We refuse to have our hard earned savings vulnerable to solutions and reforms that history shows will not work (collapsing fiat currencies and paper “assets”). As the next crisis creeps ever closer – What, Dear Reader, Are Your Plans? Our Personal Solution -> Secure Physical Silver & Gold. What’s Yours? Australia – Canada – Mexico – New Zealand – United Kingdom – Singapore – Malaysia

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Here’s a look at some recent excerpts from our Gold Silver News section:

“How can the solution for debt and consumption be more debt and more consumption? How can that be the solution to our problems? I would expect there to be a currency crisis or a semi-crisis this fall or next year. It’s crony capitalism, Bernanke and Greenspan have brought crony capitalism to America … but that’s not going to solve the world’s problems. We’re going to have some serious problems in currency markets, we’re going to have serious problems in the world markets if we see protectionism rising and rising again.” Jim Rogers – CNBC – 9/14/2009

“It will be a long slog – a matter of years – with the risk of some relapses along the way. We have a long way to go to get back to the point of fully utilizing our economic resources and restoring something approximating full employment.” Paul Volcker – Telegraph – 9/17/2009

“The temptation for governments to use inflation to reduce the real value of public and private debts may become overwhelming. In countries where asking a legislature for tax increases and spending cuts is politically difficult, monetization of deficits and eventual inflation may become the path of least resistance.” Nouriel Roubini – The Globe And Mail – 9/18/2009

“Delevering, deglobalization, and regulation… All of those three in combination, to us at PIMCO, means that if you are a child of the bull market, it’s time to grow up and become a chastened adult. It’s time to recognize that things have changed and that they will continue to change for the next — yes, the next 10 years and maybe even the next 20 years.” Bill Gross – Forbes – 9/8/2009

“When we unplug the Federal Reserve, the dollar will stop its long depreciating trend, international currency values will stop fluctuating wildly, banking will no longer be a dice game, and financial power will cease to gravitate toward a small circle of government-connected insiders.” Dr. Ron Paul - CNBC – 9/18/2009

Rising prices of precious metals and other commodities are “an indication of a very early stage of an endeavor to move away from paper currencies”. “What is fascinating is the extent to which gold still holds reign over the financial system as the ultimate source of payment.” Alan Greenspan – Bloomberg 9/9/2009

Greenspan’s point on Gold is very valid. Gold and Silver ARE the ultimate sources of payment. There is no fiat paper currency that can trump precious metals.

Bill Gross is right, it is time for the public to grow up and act like adults. The powers that be in the financial world have proven themselves to be corrupt and haphazard to our economic well being.

We stand at a rare crossroads in time where Gold and Silver are the safest and highest potential value gaining assets. When the fundamentals of our economic situation play out there may be nowhere to hide aside from tangible assets.

Don’t wait for another major collapse in the markets before you act! Secure your wealth now in physical Gold and Silver before it’s too late!

Learn More About Our Daily News Headlines – Add News RSS feeds to your inbox or Mobile Device

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May was a sensational month for Gold and Silver prices!

Silver hasn’t shined this brilliantly since 1987:

Silver futures gained 3% Friday, ending May with their biggest monthly gain in 22 years as inflation worries and hopes for an economic recovery boosted the metal. Gold rose to three-month highs as the dollar slipped. Silver has gained 26.6% this month, the biggest since April 1987. The metal has many industrial uses but is also seen as a hedge against a weaker dollar and inflation. In contrast, gold, which has limited industrial uses, has gained 9.8% in the month, the biggest monthly gain since November. May 29 (MaketWatch)

Look for Gold to move strongly upward in value as we pass both $1000 and $1023 resistance levels.

Gold may target a record $1,250 an ounce as a continuation head-and-shoulders pattern may be forming within a longer-term trend, Standard Bank Group Ltd. said, citing trading patterns May 26 (Bloomberg)

How has the dollar been doing of late?

The US Dollar Index closed last week below 80.

Analysts are predicting further weakening in the dollar to come:

The dollar, which has dropped 5 percent against the Euro over the past month, has a lot further to fall, says Stephen Gallo, head of market analysis at Schneider Foreign Exchange. “The main move we’ve seen in currency markets in the last two weeks is the pullback in the dollar, which we’ve been forecasting since at least December,” he explains.  ”We think that the dollar thumping is just starting to get going.” May 27 (MoneyNews.com)

USA Today recently reported total liabilities currently stand at $668,221 per US household stating, “The government took on $6.8 trillion in new obligations in 2008, pushing the total owed to a record $63.8 trillion.”

Marc Faber, Austrian economist and predictor of the October 1987 crash, took the following stance about where we’re headed on national television on both Glenn Beck and Bloomberg TV.

The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said. Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office. May 27 (Bloomberg)

As the US dollar and all other paper currencies further inflate and free fall in value – We recall history and how the greatest transfers of wealth happen when Gold and Silver account for dying paper currencies and credit.

The difference this time around —> THE STAGE IS WORLDWIDE and the amounts of bad debts and currencies that Gold and Silver must account for are larger than ever before!

Our inventories are stocked and ready for your order – www.GoldSilver.com

Take action before the masses begin to hear and read about record Gold prices! Secure and enhance your position today – before prices ignite and take off!

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President Obama recently forewarned about “unsustainable” deficit spending and skyrocketing interest rates:

Meanwhile John Williams of Shadowstats.com recently stated

And, from the press:

Remember – the Federal Reserve has expanded our monetary supply by trillions upon trillions of Dollars.  This will eventually lead to a run up in prices and daily living expenses. The masses won’t take action until their everyday pocketbook begins to take a hit.

Remember what $5 gasoline did for the demand of hybrid automobiles?
Imagine what $10 gallon milk will do to the price of Gold and Silver.

Acquire your Gold or Silver American Eagles before prices take off!

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“The U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion, an amount that approaches the VALUE OF EVERYTHING PRODUCED in the country last year.”

- Bloomberg

Again – that’s $12.8 TRILLION – in only a half year’s time.

So, where are we headed?  How about $25 trillion – perhaps that amount will solve the crisis?

Unfortunately the worldwide problem of debt cannot be solved by creating more debt.

Meanwhile last week The G20 met in London.  The political leaders from the 20 major nations blasted images and press releases across the globe assuring everyone that they and their central banks have answers for the crisis they helped create.

Any documented proposals to a solution?

No, just more money pledged for the IMF ($750 billion additional) and a picture of 20 politicians with a globe behind them.

Look and you will find vague promises of joint action while on the sidelines countries are covertly making plans to assure that they are not left holding the dollar bag.

Countries are looking for less exposure to the dollar. The above nations are publicly taking the necessary steps to insure their wealth against a very possible dollar collapse.

This makes us wonder, are there other countries doing this behind the scenes as well?

Who else doesn’t want to be left holding greenbacks when the dollar crumbles?

Well —> WE DON’T!

Here at GoldSilver.com every dollar we make is converted into precious metals.  We refuse to allow bailouts, The G20, or debased currencies to dilute our wealth.

It used to be that governments backed their currency by gold and/or silver. This gave the currency real legitimacy as it could be exchanged for something of true scarcity (it was a TRUE store of value).  Governments and central banks consequently could not be print their currencies into extinction.

Well, the U.S.A. cut its final link to gold in 1971 and no other currency is backed by anything tangible either.

All are paper.

This has been tried many times before by governments around the world throughout history and it has ALWAYS led to the same disastrous result for the currency.

There however is a very bright side and an opportunity for those who understand what is going on today and take the appropriate actions.

We hope to lead by example and we encourage everyone to become YOUR OWN CENTRAL BANK and hold true wealth during this crisis period.  Here are some of the current gold and silver reserves we have for you in stock. Many of these had been out of stock but are back… for now:

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