BEST OF JIM COOK

October 7, 2008

SILVER AND THE DOOM OF THE DOLLAR

About 75 years ago the government gained a monopoly on our money. That meant you had government (an incompetent organization) inflating money and credit for political purposes and social engineering. Since that time the dollar has lost 95% of its value.

The current financial debacle stems from a combination of loose money, subsidized mortgages for the underclass and the utter failure of sleepy government regulators. Mix in a combination of arrogant pride and avarice from main street mortgage brokers to Wall Street investment bankers. There’s no citizen that can’t become greedy when the central bank is throwing wads of money around.

We have unsound money in America. That’s the root of our problems and we will careen from one crisis to another until the ultimate hyperinflationary collapse ends our sorry experiment with government monetary management.

The current rush into gold and silver gives us a glimpse into the future when the paper dollar expires. It probably makes sense to get 10% of your net worth into silver now strictly for hedging purposes.

That says nothing about the splendid case for the fundamentals of silver made by Ted Butler. It’s one thing to offset inflation, it’s another thing to profit mightily as Mr. Butler predicts.