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Gold and silver investing may be the last remaining option for Americans clinging to personal fiscal responsibility as the source of their future wellbeing.

April 05, 2011 – Gold and silver investing may be the last remaining option for Americans clinging to personal fiscal responsibility as the source of their future wellbeing.

Today’s retirees grew up in an era when it was commonplace to put a sizeable portion of their money in a bank account, confident that it would grow along with inflation. Some of it they tagged for a rainy day, a prudent reserve to see them through any foreseeable difficulties. The rest, they believed, would provide a steady income from interest when they retired.

After that everything went rapidly downhill. Spurred on by Wall Street money mongers, our ‘save now spend later’ society became one of ‘buy now pay later.’ We rationalized the mindset with the doctored statistics the government continually fed us, numbers designed to make it all seem like a pretty good idea.

Then came the recession towards the end of the new millennium’s first decade. We came out of that shock with a fresh determination to save, but a major shift in attitude was the last thing Wall Street wanted. In rushed Bernanke to make certain that it didn’t happen.

He dropped interest rates to zero, oiling Wall Street’s broken down machinery. Banks got an instant windfall of billions of dollars while savers had the rug pulled out from under them. Suddenly savings were losing money, and the rate at which they are losing it has escalated to well over 5% annually, adjusted for inflation.

The hardest hit are the older retirees — those “Americans who have done everything right, have worked hard, saved their money and stayed out of debt,” said one voting member of the Fed’s open-market committee to the Wall Street Journal. The dramatic drop in income from their savings has caused nearly one third of them to draw down their principle, severely limiting the amount of time it can support them.

That’s a pretty poor example for those who were considering adopting the same policy. With no future in cash investments and equities producing strong returns, it should be easy for Wall Street to lure in new suckers. But the strong returns have come at the expense of depressed wages, which in light of current inflation, means most workers lack the disposable income to keep Wall Street’s fires burning.

Fortunately there is one fiscally responsible path to financial security: gold and silver investment.

Shannon King

Senior Staff Writer – GoldSilver.org

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