“Gold is money. Everything else is credit.” Those were the words of investment banker J.P. Morgan in his testimony before Congress in 1912. Morgan became the wealthiest banker in the U.S. at the end of the 1800s and early 1900’s by lending out dollar loans far in excess of the gold his bank had in reserve. Because of those excess loans, business booms generated business recessions like the panic of 1907 in which the U.S. economy declined by 29.2% and the panic of 1910 to 1911 during which time America’s GDP fell by 14.7%. Because Mr. Morgan was of such wealth, he was forced to find personal wealth from some of his other resources to meet depositor withdrawals.
Not liking to be the lender of last resort, Mr. Morgan and other elite members of society set out to engage in a secret meeting at Jekyll Island off the coast of Georgia to manipulate the Congress into creating the Federal Reserve Bank which came into being in 1913. The names of the elite members of American society who orchestrated plans to create a central bank in the U.S. is outlined in G. Edward Griffin’s “Creature from Jekyll Island.” It is a fascinating read and I would highly recommend you read it if you have not done so because it tells of the historic policies that have set the stage for the most important reason you need to own gold now.
When J.P. Morgan said gold was money and everything else is credit, he was a testimony to that because every time there was a bank panic, he had to dig into his own pockets to find the gold to satisfy depositors. So, he and his elite friends who went to Jekyll to orchestrate a conspiracy against the American people made sure they would not personally need to come to the rescue during bank panics. Instead, they succeeded in have the Federal Reserve act passed in 1912 that ensured their profits would be retained while their losses were socialized against the American people as a whole.
To ensure “peace and tranquility” among the masses, the Fed has been put in place to socialize the losses that J.P. Morgan and all the other major banks by placing the burden of those losses on average Americans. The banks are free to continue getting rich during the good times by recklessly issuing credit. Then when excessive credit/debt leads to the next market crash, the Fed issues money out of thin air, triggering a decline in the value of the purchasing power of the dollar. Bingo! The Fed has privatized profits and socialized losses on the backs of average Americans.
How can this social injustice be reversed? The answer is to reverse the actions of President Roosevelt in 1932 when he detached gold from the monetary system for American citizens and to reverse the policy of President Nixon in 1971 when he detached gold completely from money by causing the US to default on the requirement to back the dollar with gold in international trades.
Thankfully President Ford signed a law that made American ownership of gold legal again so the one way you can be sure your savings retain value is to buy gold and hold it as money. With gold your purchasing power over the long run will be retained.
We own gold to retain our wealth. But you can actually grow your wealth by owning companies that discover money in the ground—those companies that have a nose for finding the yellow metal in the ground. One company that is have enormous success is Snowline Gold Corp. I recently interviewed Scott Berdahl, the CEO of that company on Turning Hard Times into Good times. You can view my interview with Scott on my YouTube channel here https://www.youtube.com/channel/UCXcq-qJrGjfXIMwcJ9jdmIw
Finding major gold deposits is the main focus of J Taylor’s Gold, Energy & Tech stocks. We have quite a few junior exploration companies that are building very large gold deposits that have the potential to provide investment gains of 5 to 10-fold over the next 1 to 5 years. To learn which companies have that potential and to keep up with their exploration progress, be sure to subscribe to my newsletter.
