Gemstone Inflation

Americans have been misled by politicians and the media regarding economic issues. Most people think inflation is rising prices. In fact, by definition, inflation is an increase in the volume of money and credit (Webster's 7th New Collegiate Dictionary). Inflation usually results in rising prices. Failing consumer prices, on the other hand, may not be due to a decrease in the inflation rate. They may also drop in response to poor business conditions (recession) and massive inventory liquidations.

The Federal Reserve Bank controls the money supply of the U.S. It creates money out of thin air, but uses government securities as collateral. Government securities are issued to finance debt; the Fed "monetizes" this debt when it uses the securities as a basis for printing money. The key to inflation in the future is therefore NOT the spending habits of Americans, but rather the (deficit) spending habits of the government. Massive amounts of debt, both short-term and long-term, insure the need for continued creation of government securities that can be monetized by the Federal Reserve.

Recent legislation enacted by Congress allows the Fed to create U.S. currency using the debt of ANY country of the world, not just the debts of the U.S. government. The same legislation allows for the creation of essentially infinite credit. The implications are both awesome and clear - if we continue on our present monetary path the future purchasing power of the dollar cannot be maintained. Major defaults of bank debts by third-world countries (such as Mexico, Poland, Argentina, etc.) would give the Federal Reserve a good reason to "bail out" the affected banks by taking over their debts. Americans will then pay off these bad loans in the form of higher prices on all goods and services: inflation.

GEMSTONES OFFER PROTECTION AGAINST THE DECLINE IN PURCHASING POWER THAT RESULTS FROM INFLATION. THEY HAVE BEEN USED AS AN INFLATION HEDGE FOR CENTURIES.