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If you think in terms of gold and silver prices then you probably aren’t too worried about the rapidly expanding bubbles in both food and energy.

February 09, 2011 – If you think in terms of gold and silver prices then you probably aren’t too worried about the rapidly expanding bubbles in both food and energy. But if your only wealth is tied up in dollars it is an entirely different picture.

Suppose Bernanke’s announcement of his stimulus plan put you in a coma from which you are just now waking up. You run to your local grocer (gas is too expensive to drive there) to stock up on essentials and you find that the tab has increased 87% in your absence. That’s an enormous change and data from the UN’s Food and Agriculture Organization back it up. So you ask Bernanke what is going on and he says "clearly what’s happening is not a dollar effect, it’s a growth effect."

Now your curiosity is really piqued so you pick up a copy of the Wall Street Journal and look for phenomenal expansion of the emerging economies, but all you find is the same growth that has been going on for years. Well, if it’s not growth then it must be inflation, you conclude, but then you read that inflation is still close to zero.

You next discover that Wall Street is doing great and “total compensation and benefits at publicly traded Wall Street banks and securities firms hit a record of $135 billion.” By now you would be forced to realize that something mighty fishy is taking place and your dollars are getting more worthless every day.

But this tale has a happy ending. You had the foresight to invest in gold and silver when you first got wind of the impending fiscal crisis so you turn to the commodities section to see how those are doing. To your great relief, while Bernanke was busy blowing bubbles the price of gold and silver had kept pace with the surging cost of living.

Shannon King

Senior Staff Writer – GoldSilver.org

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