Iran's Oil Bourse, the US Dollar, and Gold

Note: I've been "unplugged" for a couple of days because my neighbor's computer crashed. I've been busy helping him recover information off his old hard drive. Normally, this process of recovery would take around a day to sort out, but I kept getting interrupted because I had to go to work. Sucks to be poor! But, now it's done and he's happy... Back to the Collective!

 

I see that talk of the upcoming Iranian oil bourse is back in the public's mind. Devvy Kidd mentions it in a recent article (The Noose Tightens) with a link to an excellent piece hosted by Eldorado Gold titled The Proposed Iranian Oil Bourse (.pdf). I recommend reading it. There's a lot of good information in this article about the U.S. dollar, the American Empire, and why we do the things we do as an empire. (Hint: It has a lot to do with protecting our fiat currency.)

 

Just for kicks, I popped over to Kitco.com to see where gold was this morning and where it had been recently. Armed with the new information gained from the above articles (you read them, right?), Kitco's five year gold chart makes more sense.

 

 

While examining this chart, I discovered something interesting. Look at the quoted values for the U.S. dollar on April 2, 2001 and January 16, 2006 as compared to gold. On April 2, 2001, you could by an ounce of gold for about $256.00. Almost five years later, that same ounce of gold would cost you over twice as much! And they say there's no inflation. Who are they kidding? (The American public... that's who!)

 

Let's speculate for a moment. If gold keeps trending upward, let's look at where it will be if it either increases at the same rate or doubles in value. The first option puts an ounce of gold at about $768.00 on or around January, 2011. If gold's value is compounding, it'll fetch around $1024.00 an ounce in 2011. Our U.S. dollar will be worth less... a lot less if this happens. I just don't see how average Americans are going to keep their heads above water, financially speaking. This pool of debt and inflation seems to be rising faster than most of us can keep up with.

 

This may be why I've had this sinking feeling lately that no matter what I do to get ahead financially, I still come up short. What I've thought to be my own shortcomings in earnings has actually been the sinking value of the U.S. dollar on the whole. The reason I'm poorer today than yesterday, is because my money I hold in my hands is worth less than yesterday. I've been robbed and I didn't even know it. Don't believe me? Look at the chart... the number's don't lie.