As the nation continues to struggle with a prolonged economic slump and an unemployment rate that remains stubbornly above nine percent, former Federal Reserve Chairman Paul Volcker has warned the Fed against the temptation to jeopardize price stability in an effort to jumpstart the economy. Even "a little inflation" can be dangerous, Volcker warned in an op-ed piece in Monday's New York Times. Volcker noted "a sense of desperation" abroad in the land, since "both monetary and fiscal policy have almost exhausted their potential, given the size of the fiscal deficits and the already extremely low level of interests rates.
Anyone who watches television news for more than a few hours is likely to see an advertisement for gold. As the Federal Reserve continues to print fiat money in vast quantities — backed by nothing except the vague promise that this paper is legal tender and can be used to pay all debts public and private — people are increasingly looking for something of real value. And that something is gold.
Released on Tuesday, the Census Bureau’s annual report flashed a dismal economic outlook, showing that U.S. poverty has exceeded 46 million people — nearly 1 in 6 Americans — and the number without health insurance spiking from 49 million to almost 50 million. As unemployment continues to hover around 9 percent, many Americans are financially exhausted, as the overall poverty rate reached 15.1 percent, up from the 14.3 percent recorded the previous year. The number of Americans now below the poverty line is the highest number recorded since 1959, when the Census first started analyzing such data.