Tuesday, February 23, 2010

Richard Russell: Last Man Standing

Even though I'm able to read Richard Russell's Dow Theory Letters at the town library (they are subscribers), it's nice to find snippets from his daily remarks up on 321gold. It's convenient, and I can easily share samples of his excellent writing with others.

Here's one that I'd like to share with you, a recent update from Russell on gold and the state of America's finances called, "Last Man Standing".

A final thought. One could stay in US dollars and gold. If the dollar goes to hell, rising gold could make up for the loss in purchasing power.

A hundred years ago gold and silver were the only items accepted as money. Paper money was carried around because it was convenient as opposed to gold and silver, which are heavy. Besides, if you had any doubt about your paper, you could turn it in at any national bank for gold, "the dollar was as good as gold." Furthermore, the dollar was backed by one of the strongest and most prosperous nations on earth.

Today the dollar is backed only by "the full faith and credit of the United States," the greatest debtor the world has ever seen. Questions are now arising about the credit-worthiness of sovereign debt. Many analysts believe that the US will never, ever, be able to pay off its debt, which is now not only rising but is compounding.

It's obvious that the Obama administration is putting off the solution of our debt and deficit problems to other future administrations.
This is always a dangerous procedure.

It's the reason why our children and grandchildren will not inherit the fun and easy life that we live. I've talked about sacrifice before -- our children will be making some of the sacrifices that my own generation made (and I hope one of the sacrifices won't be war)...

Read on to understand why "Americans have forgotten the meaning of gold and silver", and check out more of Russell's remarks at the 321gold archive and at his website (linked above).

You'll see why he's one of the most fascinating writers around (on almost any subject), and you will definitely get some perspective from a guy who's been around and seen more than most.