Gold and the Dollar Collapse

In an article entitled "America's Second Biggest Bank Failure," James Turk throws out some interesting statistics.

"All of this does not bode well for the dollar. The federal government is readying the printing press to create even more dollars to plug the black-hole on bank balance sheets, but there is another black-hole that they need to begin worrying about.

The FDIC deposit fund only has $53 billion of assets, and around 10% or perhaps more of that is now going to be used to bail-out IndyMac. So how safe is the FDIC? How safe is the dollar, or more to the point, how safe is your wealth held in dollars? Not very."

One tenth of the FDIC fund was used to bail out ONE bank! What happens if two, three, ten others fail?

"Oh well," you say, "the government wouldn't let the FDIC fail."

True. So the Feds will simply print some more dollars out of thin air to pump into the FDIC. That is, if they can.

At what point does the rest of the world stop accepting dollars that are being printed as fast as the next crisis arises? And when they do stop allowing use to do so, who is going to be there to bail out the FDIC if it goes belly up?

So the point of this is simple. When paper money fails, and it always does, gold, as it has done for 6000 years, will still be here, protecting the wealth of those who were smart enough to buy it beforehand.

Don't wait too late.