September 24, 2010 — How about this one? Both the Congressional Office of Management and the Treasury list a total shortfall of $4.5 trillion coming due during the next 12 months. And this shortfall is supposed to be paid off with less than half a trillion dollars.

How will this work? Easy, they’ll have to print the money. This will put pressure on our beloved Yankee dollar. As the dollar fades away, it will require an increasing number of dollars to buy an ounce of gold. This, then, is the secret of gold’s relentless climb.

It’s scandalous, it’s ridiculous, so much so that President Obama finally seems to “get it.” Which is why Larry Summers is leaving his job as chief White House expert and why we can expect a new team of clueless Keynesian experts to take over in Washington.

The national debt of the US is above $13 trillion, a sum few people can even comprehend. With short rates now at zero, the US is having trouble handling its incredible mountain of debt. But what happens if rates start to climb? We’re talking about the national debt compounding and pushing the US towards economic bankruptcy.

What can you and I, citizens of the debt-laden United States do? (1) Vote these gutless know-nothing louts out of Congress, and (2) Protect ourselves by loading up with gold.

Slowly but inevitably, America’s voters are grasping the enormity of the ghastly situation that Congress has placed us in. Thus, the rise of the Tea Party and the rise of respect for the Constitution of the United States, and the new respect for Constitutional money.

If the dollar (Federal Reserve notes) had a fixed connection with gold, this mess never could have happened. The limited quantity of gold would have limited the production of dollars, and the Fed’s inflation-crazed hands would have been tied.

No wonder the Fed hates and fears gold. If gold continues to climb to new record highs, the great “unwashed” US public will start to become educated and ask questions. They will even ask questions like, “What has the Fed been doing, and why?” And “Is the Fed a menace, and do we even need the Fed?” Also rising gold represents a red flag: it tells American voters and the world that the dollar is losing purchasing power.

But who knows? Maybe Americans will prefer to remain stupid. After all, they’ve been buying stocks for decades, and all the while the ratio of stocks to gold has been declining. In terms of the true money, gold, stocks have been in a bear market since 1971.