3/22/09 The Most Important Date In History

Precious Metals Market Analysis, By Michael Pennington (Copyright 2010 Pennco Coins)

Mark it down in your memory, last Tuesday March 17, 2009 will go down as the most important date in history. In its infinite wisdom, the FED decided to commit trillions of dollars to inflate the economy each year for the next 4-6 years. The inevitable consequence of this action is to guarantee a price for silver and gold that will exceed all our expectations. The FED’’s action is an act of desperation. It has never been tried by any destitute nation in the history of the world.

Trust me when I tell you Ben Bernanke has no better idea than you or me whether this will prevent the looming Great Depression II. Even if it does work, it will create the greatest inflation the U.S. has ever seen, and there won’t be anything the FED can do to prevent the coming hyperinflation anymore than they were able to halt the current situation from occurring. As I have said on several occasions this is absolutely the worst thing they could do. You can’t cure deflation brought on by a debt bubble with more debt – huge amounts of debt! I ask you from a common sense perspective, WHAT SENSE DOES IT MAKE TO PRINT MONEY TO BUY YOUR OWN MONEY? The simple answer is that it doesn’t make any sense. China, Russia and other nations who have huge trade surpluses with the U.S. are very concerned that the dollar will soon be worthless and there trillions of dollars held will be worthless. They have mostly stopped buying our Treasuries and this is why the FED must step in to buy our own debt. It’s like grabbing a new credit card, borrowing as much as you can to make the minimum payment on all the other cards outstanding.

It’s a losing proposition. This is why the world this past week has asked the G20 nations at their upcoming meeting in April to discuss a new one world currency. They want to convert out of dollars desperately. Of course, this has been part of the elites plans all along. So I look for real progress secretly being made on this one world currency discussion. If China and Russia are very concerned about the dollar, so should you. Got Gold?

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