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Housing Bill to Intensify Inflation and Further Devalue Dollar

housing crisis.jpgRon Paul is again speaking truth while the majority of Congress continues to allow massive amounts of debt to be dumped on taxpayers. Massive meaning an estimated $1 Trillion dollars, according to Senator Jim Bunning. That is nowhere near the estimated $25 Billion initially disclosed. In a recorded video, Dr. Paul discusses the ramifications of Congress passing the Housing bill. It is not only “The Mother of All Bailouts,” but yet another power grab by the government. The passage of this bill is undoubtedly bearish for the dollar and bullish for precious metals. It will serve to increase inflation and the rate at which the dollar is being devalued. In essence, our dollars are now backed by unwanted assets (Fannie and Freddie securities). At some point soon, the dumping of the dollar is going to intensify. Here are the key points, followed by Ron Paul’s 7-minute video:

– Housing Bill passes overwhelmingly 272 to 152

– $2.5B line of credit to the Treasury (Fannie & Freddie – ‘F & F’) is now “open-ended”

– UNLIMITED – Treasury now allowed to buy all ‘F & F’ housing securities

– Congress no longer involved in appropriating funds (Treasury now does)

– National Debt Ceiling Moved up $800 BILLION (buried in the bill)

– Treasury Bills being exchanged for unwanted ‘F & F’ securities

– This is the asset which “backs up our currency”

– Value of these assets are depreciating

– Solution breeds inflation and places pressure on the US Dollar

And the power grab includes:

– Mortgage industry workers “will now have to be fingerprinted.”

– All credit card transactions will now be reported to the IRS.

By |2017-03-23T14:06:38+00:00July 24th, 2008|Gold & Silver Commentary|

About the Author:

Jason is the founder of He previously worked in data analytics for the world's largest research firm, consulting to Fortune 500 companies globally. Jason eventually leveraged those skills to trade successfully full-time and after helping friends and family optimize their investments, he launched Gold Stock Bull and The GSB Contrarian Report newsletter. Jason is a cycles investor with a contrarian eye for identifying undervalued assets. He has built an expertise in both the precious metals and cryptocurrency markets. Jason believes in honest money, limited government, decentralization of power and enjoys studying alternative economic models.