Politicians love fiat currencies and Keynesian Economics, which teach there is no need to back a currency with precious metals. Politicians don't like a gold, or silver, standard because it makes them accountable to the people. This is why Keynesian Economics is taught in all the schools. To afford all their debt schemes, they must have a fiat currency they can abuse at will-which is exactly what has happened in the U.S. for the past 39 years and why we find ourselves in such a tenuous situation. The financial consequences can be the catalyst for the real changes that must occur to send us into the next age of wonder and prosperity.
How high are these metals going to go? It's anybody's guess; but, when you look back to the late 1970s that drive metals prices to their peaks in early 1980, it pales in comparison to what we're dealing with now. If you inflation-adjust-with real numbers not government-concocted nonsense-$875/oz. gold and $55/oz. silver in 1980, that $875 becomes $6,500 and $55 reaches into the hundreds. That's why I use those figures. I think gold will hit those targets before this is all said and done. It could go even higher depending on how bad the consequences are.
