Does the Fed truly have inflation under control?
"I want to add one concept here that I don't think most people understand. It's the idea of devaluation, or lowering the value of an item. But when we say the dollar is being devalued, we have to ask, "Devalued or lowered in value against what?" And the answer is always, lowered in value against time honored intrinsic money -- gold. Of course, "the dollar being devalued" is a concept that the Fed doesn't want to hear about and doesn't want you to hear about. A "dollar devaluation," that sounds terrible.
But that is exactly what is happening when the price of gold rises in terms of dollars. Here's an example. In the year 2001 George Bush was elected President. Gold at that time was selling for 285 US dollars an ounce. Here in 2006 gold is selling; for roughly 660 US dollars an ounce. In other words, the US dollar has been devalued against gold, by almost 60%. Why don't you ask Dr. Benjamin Bernanke, our Fed Chairman, about the ongoing dollar devaluation. Chances are, if he is willing to respond at all, he'll tell you that the Fed is watching carefully and has inflation under control Sure they have. "But Ben, you're changing the subject, what about dollar devaluation?"
So just in case the dollar continues to be devalued, my advice is to own some gold. You see, just as the dollar is being devalued, gold is being revalued."