Richard Russell, a prominent financial writer, on July 8th wrote this:<\/p>\n
\u00e2\u20ac\u0153Fed Chief Bernanke will absolutely not accept deflation\u00e2\u20ac\u00a6 Shrewd gold-accumulators are well aware of this.\u00c2\u00a0 As the deflationary and de-leveraging forces press on the US economy, the Bernanke Fed is ready to devalue the US dollar in its (whatever it takes) battle to hold back deflation<\/a>.\u00e2\u20ac\u009d<\/p>\n Russell sums it up in three sentences:<\/p>\n 1. The Fed will not tolerate the growing forces of deflation The key to what he has said is \u00e2\u20ac\u0153once it is realized that the Fed is on the path to devalue the dollar.\u00e2\u20ac\u009d\u00c2\u00a0 Most of the general public does not realize that this is going on with intention.\u00c2\u00a0 They don\u00e2\u20ac\u2122t realize that every time the Fed prints dollars it devalues all dollars in the system through monetary inflation.\u00c2\u00a0 It only takes 4% inflation for 17 years to cut the value of the dollar in half!\u00c2\u00a0 When the general public realizes that the Fed won\u00e2\u20ac\u2122t stop printing there will be a mass exodus into gold and the prices will go through the roof; simple supply and demand.<\/p>\n It should be obvious that the Fed hates deflation; they have been inflating the dollar since their inception in 1913.\u00c2\u00a0 They do this by printing money.\u00c2\u00a0 This process has been accelerated by the removal of the gold standard in 1971.\u00c2\u00a0 The Fed can now print money without limitation, thus the reason the monetary supply has increased 2.5 times in 18 months.\u00c2\u00a0 The deficits are increasing by an average of $4.7 billion per day.\u00c2\u00a0 But people have become accustom to the inflation tax, so it is just normal.<\/p>\n
\n2. To combat the deflationary forces, the Fed will devalue the dollar by printing trillions more of Federal fiat money.
\n3. Once it is realized that the Fed is on the path to devalue the dollar, there will be\u00c2\u00a0panic to buy and own gold.<\/p>\n