"When we have gold we are in fear, when we have none we are in danger." English proverb Getting Wealthy From Inflation Part II: Gold In Part I of this series, I explained why inflation -- the biggest single threat to your financial security -- is inevitable. Briefly: The government has been spending trillions of dollars to try to keep the banks and brokers and insurance companies from going out of business... even though those same banks and brokers and insur­ance companies are responsible for inflating the economy to begin with. The government didn't actually have the trillions of dollars they spent on bailouts. They had to borrow it from the U.S. Treasury. There are only two ways to pay it back: by raising taxes or printing more dollars. Obama does not have the hold over the House and Senate that he had a year ago. It is highly unlikely that he will be able to raise taxes as much as he would like. But even if he raised the maximum tax rate to 90 percent (it's been done before), it won't be enough to make up for the overspending that has already occurred. That means a huge amount of paper money will have to be printed. This has been done many times by many countries -- in an always futile attempt to mute the effect of deficit spending, bad investments, and war debts. The economic situation in this country is probably worse now than it's ever been in my lifetime. As a result of the unprecedented inflation we're facing, the pundits I respect are predicting the U.S. dollar will actually collapse. And this might happen faster and sooner than you might guess. You may wake up one day and realize the value of your savings account has been reduced to almost nothing while your income is insufficient to meet your needs. You can protect yourself now and profit in the future by investing shrewdly in assets that appreciate during times of inflation. In Part I, I talked about several opportunities in real estate. Today, I want to get you to start thinking seriously about investing in precious metals. The first and most obvious option is to buy gold. If you don't already own gold, you might want to start buying some. I'm not a financial advisor. But if I were, I'd tell you that you should have enough physical gold to keep you afloat for at least two or three years. If you can't buy that much, you should begin to buy what you can. Don't stop until at least 10 percent of your savings are in precious metals.
