November 16, 1999 ~ Rudiger Dornbusch, M.I.T. professor of economics and advisor to the World Bank and the I.M.F. has been giving us a sermon with a lot of truths on how to run a country: “Time and again, governments try to deliver an artificial prosperity with overvalued currency, using the money printing press and debt; sooner or later they fail.”
Rudi should be worrying about his own country and giving this advice to his government. Let’s take a look a some facts about disorder in the U.S.A., which has reached staggering proportions.
1. Last year, 1998, the U.S. had an export deficit of $235 billion dollars. This year, the deficit will pass $300 billion dollars. Rudi, why are you preaching to us about overvalued currencies, when your country has the highest export deficits the world has ever seen, as a consequence of an overvalued dollar?
2. The monetary base of the Federal Reserve registers an increase, at a yearly pace, of 15.9% in the last three months, an a yearly rate of increase over 20% (20%!) in the last two months. Since last August, money in circulation has increased at a yearly rate of 10.2%. Last year, M3, the broadest measure of money supply, increased $645 billion, which is double the total increase in the first five years of this decade. Wouldn’t it be adviseable, Rudi, to go back to the U.S. and stop your money printing machine?
3. During the eighteen months that ended last June (the latest date for which we have information) domestic non-financial debt increased $1.553 trillion dollars, more than 10%. At the same time, the financial sector increased its debt even more: additional debt of the financial sector increased by almost 30%, by $1.626 trillion dollars. Household mortgages increased by $563 billion dollars, and corporate debt grew by $642 billion dollars. Money market funds increased by $357 billion dollars, 30%. What are you doing here in Mexico, Rudi, when your own house is on fire with additional debt creation?
4. Since October of last year, 1998, the Down Jones Industrial Index has risen 40%, the NASDAQ index has risen 160%, the Morgan Stanley High Tech index has risen 200%, the NASDAQ Telecommunications index has risen 170%, the Philadelphia Semiconductors index has risen 240%, and the Internet The Street.com index has risen by …480%! Why are you warning us against artificial prosperity, when your own stock market is clearly in the midst of a huge speculative bubble?
5. You are quite right, Rudi, when you state that all these policies fail, because undoubtedly, they will fail. But you should begin by putting order in your own house, instead of picking on Mexico.
Rudi, you are part of an organized effort to ANNEX MEXICO to the U.S., by pushing Mexico to use the U.S. Dollar as its currency, through a Currency Board as in Argentine. In the first place, you should be aware that Mexico wishes to remain an independent country. Second, you should focus your attention on your own country, for all those bad policies which you warn us against, and rightly so, are rampant in the U.S., and your currency is far from reliable, as we shall soon find out. Finally, you should be aware that Mexico has no interest in “surrendering”, as you so insolently have suggested, but does have an interest in turning to a sound currency, such as silver, and thus preparing itself for the catastrophe which is staring the U.S.A. in the face.
Written by Hugo Salinas Price for In This Age of Plenty ~ November 16, 1999
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Please allow me to introduce myself; I am Jeffrey Bennett, President of Kettle Moraine, Ltd., the parent of Sierra Madre Precious Metals.
I have been married for 52 years with two children and four grand-children, a veteran of Viet Nam, student of history (both American and film), and was host for fifteen years of Perspectives on America on the alternative airwaves, covering such subjects as, health and wellness, news, political satire, education and editorial commentary on current events through the teaching of history, and Protecting Your Wealth. In early 2018, I took a several month hiatus to complete some family business but returned to airwaves April 17, 2018).
At the age of ten, I sat in a bank-vault in the Citizens Bank of Mukwanago, Wisconsin with my grandfather going through bags of old American Peace dollars, hand-selecting each coin as dated rolls of 20 coins were carefully put together and rolled. Learning of the history of these beautiful pieces of Americana, I asked my grand-father, "Why are we doing this?" to which he replied, "Because someday they are going to do the same thing with the silver in our money that, that (S.O.B.) Roosevelt did with gold in 1933." It took only six-years for his prediction to come to pass at the hands of a disciple of Roosevelt's... and what will a Federal Reserve 'dollar' purchase today - and what will that old 90% Silver Peace Dollar purchase?
Although at the age of ten, there was little understanding of the meaning of it all, over the next half-century I became well-versed on the subject matter. During this summer of my education, I began to purchase silver coins as a collector and some small, international gold coins two years later - not an easy feat in the shadow of the Roosevelt confiscatory policies of 1933. Although those policies remained in effect until the mid-1970's, it was not until 1991 that I found that one could make a living providing precious metals and collectible, historic numismatic coins to a willing and concerned clientele.
It was also during that year, that I began a relationship with one of the first Trust companies to give the public access to gold and silver as part of an Individual Retirement Account (IRA) - and Kettle Moraine, Ltd., founded in 1995, but have ceased providing service due the the intense change-over of the provider.
In November 2011, after a 15 month broadcast on another network, I returned to the airwaves with my then revamped program, Life, Liberty & All That Jazz, and for over a quarter-century, I have been proud to serve the family of listeners of my numerous broadcast programs for physically-held precious metals for investors and collectors alike. On March 23, 2020 I launched my brand new - appropriately named program, The Edge of Darkness on the Republic Broadcasting Network, and thus continue to remain available to our long time clients and their families. Ah yes - find out what "inter-generational" wealth provision has done for our clients over the past three decades.
Don't buy the sizzle of that steak until you understand the cost! In other words, don't buy the bull being dispensed by the 'rare coin' pitchmen until you understand the full story. We, at Sierra Madre Precious Metals, will be proud to serve your needs.