Posts Tagged ‘print money’

Fake Money Threatens our National Security, again!


Does the name Sam Upham ring a historical bell? Mr. Upham imprinted his name into history books in the most unusual fashion. In fact, Mr. Upham learned, well before Mr. Bernanke I should add, that the power to print is more profitable than the effort to work. Maybe this is why our gentleman of the hour printed nearly 15 million counterfeit Confederate dollars during this country’s Civil War over 150 years ago. Some respected historians believe our Civil War’s outcome was offhandedly determined by one “Yankee scoundrel” with the power to print money.

History is a road map seldom followed. So many readers are asking what it will take for physical PM (precious metal) to rise without questioning what happens when fake money rules the world. Like a wave building, the ill effects of fiat printing will soon position those holding sound money into a posture of wealth accumulation. Our country’s history is the only proof needed.

I would like to expand our history lesson for a paragraph, or two, before comparing a circa 1862 American currency to today’s precious metal alternative. The Confederate South created a fiat currency to afford a war. This new fiat currency, commonly called Confederate dollars, held no gold restraint because of a 100% reliance (sound familiar?) on those with the power to print.

Over creation, or over printing Confederate dollars led to rapid inflation as confidence in the money dropped all while volumes of Confederate dollars increased. It is worth mentioning that the cost of a man’s suit ran just under $3000 Confederate dollars as inflation gripped……. and then crushed this fiat money of the South.

For the record, the aforementioned Mr. Upham didn’t work for the Confederate Treasury. In fact, Mr. Upham was nothing more than a money bootlegger who realized the potential of combining cheap paper with barrels of ink. His ability to create fake money accelerated the Confederate currency into an inflationary spiral that led to the end of the Civil War!!!

I’m not a conspiracy theorist but it’s worth mentioning Mr. Upham was never caught, even with a $10k bounty on his head, and rumored to be protected by our country’s secret service till his death, hmm.


Not a day passes without the mention of our country’s national security. The War on Terror rages long after September 2001 and the argument of a safer world is debatable. Less debatable are the costs of wars under the pretense of national security. To put it bluntly, we continue to borrow/print money in order to fight rotating wars.

The parallels between an extinct Confederate currency and today’s US dollar have reached an undeniable state of similarity.  The very act of overproducing our currency is now a compromise to our national security. This realization grows more haunting when we factor growing Middle Eastern tension and other threats of war.

Only a thin line separates the power to print, and then wage war, with the vulnerability of over creating a fiat currency that intensifies the threat to our national security. The Federal Reserve Bank promotes control but their actions say otherwise.

I’m not sure who tomorrow’s history will blame for the demise of today’s reserve currency. Will we print our dollar to death in order to sustain our consumer-based economy or will we destroy our currency in the name of national security while fighting never-ending wars?

Regardless why, physical silver and gold will protect the wealth of the few willing to accept today’s historical monetary lesson.

QUESTION:  DC, are we talking about someday trading pricey PMs back into a fiat currency (US Dollars)? Not sure I’m comfortable exchanging sound money for paper promises.

TPS Reply: Thanks for the comment and question; not a week passes without someone asking the same “what to do when it’s time to move on” question. You are correct, there will come a time to leverage wealth stored in silver/gold for another asset. We often envision this step, or process, transitioning through dollars first but this most likely will not be the case.

Complications arise the minute we convert an asset back into dollars. This complication could be a tax consequence (red flags or capital gains), wealth exposure, even security issues. The word that comes to mind is discretion. Discretion is a key component to owning, storing, and someday trading precious metal.

It’s worth mentioning that the same forces soon to propel PM higher will also have an adverse effect on other assets now over leveraged; real estate, stocks, and many businesses are a perfect example. When a business or property becomes overly leveraged it becomes vulnerable to a decline in revenue. The burden of leverage remains the same even if profits decline. This is the number one reason small businesses fail when a consumer-based economy cuts back on spending.

The potential to buy (trade) severely discounted property, stock, and businesses for precious metal will increase over this decade and probably the next, too. Those storing wealth in silver and gold will eventually realize the financial benefit of trading PM for another distressed asset. This trade bypasses the need to liquidate PMs into dollars, if structured properly.

This site will discuss many other options to trade, or sell, physical silver and gold in the near future. Thanks for the question.

QUESTION:  How does someone new to PMs know the best time to buy? I hear experts mention a “bottom” but how is the bottom recognizable?

TPS Reply:  Great question, thanks. The PM bottom is not recognizable…….. anyone claiming to know differently is nothing more than a paid PM spokesman. Too many forces now control day to day PM fluctuations, unfortunately. This means we must keep our eye on the long-term goal of wealth preservation by creating our own personal gold standard.

If you’re new to PM, and unprotected, please consider buying ASAP. No one knows when some event will push our economy to the brink…… just like the days in September 2008. The world’s banking institutions are now risky investment houses and highly leveraged. Sure central banks have rolled billions in dollars of liquidity into some banks but this cushion is pale compared to the exposure of most financial institutions.

My opinion is regardless the price paid PMs are worth it, especially when we consider the potential to preserve wealth ever so discretely. No need complicating this gift by guessing an actual PM bottom that will someday soon seem irrelevant.

Contrarily, I often recommend those PM protected to exercise patience when adding to their growing stack. The trend of late is declining. This means, in all probability, the same dollars will buy more metal in the very near future but only recommended for those already PM protected. Thanks for the question, and reading TPS.


DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestsellers Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.

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The word “draconian” is often used to describe our economic situation as cities and countries across the world struggle to fix the inevitable bankruptcy that will soon push both silver and gold to the forefront of mankind. Since new readers join us each day I want to make myself perfectly clear by mentioning TPS does not sensationalize news. I feel precious metals can speak for themselves and do not need me to exaggerate their worthiness.  It is time we put draconian cuts into proper perspective and then tie silver and gold into the monetary equation. Stories like this one also validate optimism for those protected with precious metals.

San Bernardino is the third California city to declare bankruptcy in less than a month leaving city officials warning of “dire cash flow problems”.  This means fire, police and all other employees of the city are soon to find them questioning their financial future. This also means most vendors and businesses under contract with the city will only receive pennies on the dollar as the city constricts to a size supportable by a local tax base.

Most of my readers don’t live in San Bernardino or the other two California cities asking for bankruptcy protection. To you maybe, this story seems personally irrelevant when in actuality news like I’m describing today should sound like a warning beacon for your tomorrow. We must understand the domino affect that is soon to sweep across America from our coastlines inward. Your city and state will deal with the exact problems as San Bernardino in one capacity or another.

We can argue why cities across the world are facing bankruptcy but at the end effort spent in conflict will surface as futile. The “why” is less important than the “fix” and cities who postpone cuts will face the deepest pain. Some cities will resort to massive cutbacks but some will fold under unionized pressure only compounding the fiscal pain with years of ridiculous litigation. In the end, all cities will find themselves only a skeleton of what they are now.

The Average Joe doesn’t grasp how a great reduction of city services affects him personally, not yet at least.  At first, most will view the services soon to disappear as an inconvenience and I believe it is safe to say some cities are to this point as you read this. Sure some will voice anger, some will cry unfair, but in the end blood doesn’t come from a turnip and revenue will not come from businesses and individuals not producing income.

Yep, the only difference between San Bernarndino and your city is a cash reserve that dwindles lower each month.

Folks this is far more than who will fix my street’s potholes or pickup my garbage. This is a retooling of America, and the rest of the world, as we choose between fixing decades of fiscal and monetary mistakes or continue to print money for cities destined to downsize. Taking more out of your paycheck will not fix such gigantic fiscal issues either, nor will raising your property taxes.

This means we face accepting the inconvenience of a reduction in government services or face printing (borrowing) our currency worthless. Yes, these are the only choices outside of taxing your wealth 100% away and I doubt few will find comfort in more taxation.  I’m guessing politicians will pick printing more digital currency and this is why I store my wealth in physical silver and gold.

This really has nothing to do with being a gold bug or precious metal minded. This is 100% part of a protective action I’ve chosen to defend my family’s wealth and future. Owning physical PM allows me to independently support my way of life while others argue who will pay city services, entitlements, retirement and healthcare for billions that should be more focused on providing for their own.

I encourage you to jump ahead of this draconian curve by taking a hard look at the many benefits of owning real money like silver and gold, soon.


L.A. TIMES — Rising Costs Push California Cities to Fiscal Brink: “There are likely to be more in the future, but it’s hard to know, since a lot of struggling cities may manage to work things out,” said Michael Coleman, a fiscal policy advisor for the California League of Cities. “Some cities may not go into a bankruptcy, but they may dissolve. They may cease to exist.”

Once rare, turning to bankruptcy has become a painful but enticing option for cities whose labor costs and municipal debt far outpace anemic tax revenues. The Bay Area city of Vallejo began the current trend in May 2008, filing for Chapter 9 bankruptcy protection because, city leaders said, salaries and benefits for its public safety workers were eating up too much of the general fund.

San Bernardino couldn’t close a $45.8-million budget shortfall and would be unable make its payroll this summer. Days before Tuesday’s City Council vote, the city of 211,000 people had just $150,000 in the bank. The city barely scraped together enough money to cover its June payroll.



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GOLD & SILVER   1 comment

Chuck Liddell is a very tough guy.  For those not familiar with Mr. Liddell he held the UFC Championship belt bringing respect to a unknown sport.  My path often crossed, briefly I might add, with Mr. Liddell since we lived on the Central Coast of California at the same time.  He was always polite and well-respected within the community.  What I remember most about the sport Mr. Liddell profited from was how participants could simply tap the arm, or closest limb, of an opponent instantly ending the challenge.  Essentially the fighter would give up realizing the alternative could be career ending.

I’m beginning to believe America is giving up at least in some parts of this great country.  This post certainly is not a knock against the red, white, and blue but more an awakening of sort.  Part of my job here at www.theprospectorsite.com is to keep up on current events and how they trend along the precious metal path.  My facts show more are content to “tap out” than fight for what’s theirs.

This summer will go down as the summer of shock. Shocked by no recovery, shocked by high gold prices, shocked by Europe’s despair, and shocked by multiple levels of greed and dishonesty from folks elected and paid by our taxes.  One proof of giving up is this summer’s flight into U.S. Treasury Bonds even while the profit from bonds is far less than inflation.  This means massive amounts of folks are willing to invest money into something they know will shrink at term’s end?  These investors are willing to give up on saving?

Do you know the way to San Jose, Ca? More proof of giving up rests within cities like San Jose as homeowners are willing to cave by allowing bondholders the option to levy a tax on property owners to pay off bonds.  Think about this if you will.  Cities can’t print money, can no longer borrow money, so why not create a system that raises property taxes ( to protect bondholders and save the cities credit rating) taxing the few still fighting to save their homes from short sale or foreclosure?  Certainly the fine city of San Jose is giving up by not living within its means!!

Is Wall Street giving up? Since 2008 Wall Street has seen more bailout money in one form or another as our administration(s) refuse to allow old industries to die or fight.  The lucky few, corporations, don’t have to worry about giving up since billions flow into balance sheets not from profits but by bailout.  But corporate heads must be giving up to take money and then pass it on as bonuses to the undeserving.  Are there so few with integrity left on Wall Street unwilling to accept borrowed taxpayer money that only compounds our debt calamity?  Surely Wall Street has given up when principals stand behind bonuses?  How much power, how many homes, how much undeserved money is enough?

A growing number of gold and silver holders certainly are not giving up. This last month has shown how volatile precious metals can be yet metal brokers continue to report record levels of metal sales.  Are the ones willing to own gold simply the types to go down swinging?  I don’t think so, I truly believe the same grit needed to buy metal is the same spirit that built this country into what it once was.  I believe this same grit will rebuild it too.

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GOLD & SILVER   No comments yet

The problem with grasping the crisis in Greece is that most of us watch it unfold through the same lens we watch entertainment.  Think about this for a second.  One hour your viewing 5000 police officers trying to control a mob in Greece than the next hour we watch the season finale of The Voice.  If the Greek riots were happening in the city next door I bet folks in your town would be at full attention.  The question would be, should be, will it happen here and what can we do to stand strong.  I have news for all by saying the path that led to Greece’s problems is the path we are on RIGHT NOW!!  Today we ask can we learn from Greece before it’s too late?

Thanks for reading The Prospector Site. So many current events validate ownership of physical gold and silver it is nearly impossible to discuss them all.  You already know that fear and unrest have historically played on the side of precious metals and I have to say today’s news is full of unrest. I want to break down several news sources on exactly what is happening in Europe and why you should care, can it happen here, and what can be done if so.  First let me bring all up to date by highlighting EU news.


“If we don’t get the money, we face a terrible scenario … a return to the drachma, with banks besieged by terrified crowds wanting to withdraw their savings,” he said. “We will see tanks protecting banks because there won’t be enough police to do it,” he added.

Greek policymakers hinted that they had no contingency plans in the event of a defeat. “We don’t have a Plan B, we don’t have a plan omega – the last letter of Greek alphabet,” said one.  Read it here.


The country is in the grip of its worst recession since the 1970s, with youth unemployment at more than 40 per cent and public finances shattered by a debt equivalent to some 150 per cent of annual economic output.

‘They cut our pay by 25 per cent and a lot of people in my department have not been paid for two months,’ said 52 year-old civil servant Yannis Zaharopoulos.

‘We have got to the point where families cannot make it. We are financially and psychologically wrecked.’  This a must read if for no other reason than the pictures.


The economic problems in Greece are a result of too many earning more than tax payers can afford to pay.  Fingers can be pointed each direction but the fact remains Greece is bankrupt and the only choice its citizens have is to accept austerity or not receive bailout money from the EU.  This second round of bailout proves throwing money at the situation only prolongs the pain and eventually something will break down.  Unions as well as private business blame a corrupt government but regardless of who is to blame a serious situation is happening as you read this post.  In a nutshell, the people in Greece, and other parts of Europe, are losing it, literally. If your asking can it happen here let me say this, “yes”.

The only difference between Greece and the U.S. is we can PRINT MONEY to cover a tax shortfall and they can’t. Greece is part of a seventeen country euro zone governed by many decision makers thus printing money, euros, is not an independent option. But printing in the USA is more than an option it is a way of life and has been since we turned from gold (about the time we left the gold standard).  But if Greece’s problem is angry citizens unwilling to accept a broken reality, ours on the other hand is denial of unsustainable debt.  The result is the same but the path is opposite, broken governments and broke citizens.


Yes it can happen here in fact to a lesser degree it already has, remember Wisconsin? States with high government employment, entitlement dependency, and strong union representation will see the most unrest as entitlements clash with tax revenue.  Right to work states will see less unrest at least in my opinion.  Now might be a good time to see how your area could react to austerity measures like we see in Europe.

Remember the Rodney King riots? Some feel about 10% of the rioters were actually trying to prove their point and rest were just thugs breaking, stealing, and destroying what others had worked hard for.  You don’t need me to tell you if this is possible in your area.  What we don’t learn from Greece we will live like Greece.


REUTERS:  Violence flares before key Greek austerity vote

“The government cannot govern and apply the program and the political opposition is lying, this is the problem. It does not dare to tell people that there are no magic solutions, that sacrifices are necessary,” Bakoyanis said.  Read it here.


MARKET WATCH:  Could You Live Off the Grid?

Alleged mobster “Whitey” Bulger lived off the grid for 16 years before the Feds finally caught up with him. Kelsey Hubbard talks to MarketWatch columnist Brett Arends about how he did it and how an average person could do it too.  See it here.


LOS ANGELS TIMES:  Economic crisis: Should the U.S. brace for European-style riots? [Most Commented]

The violence in the streets of Europe will be in American cities before the end of summer. None of this is an accident. The same groups calling for riots there are based here. Wake up. The hard left is trying to fundamentally transform America and many of us don’t like their new model.

– JamesAndrews

And, btw, the USA is much closer to a Greek situation than people like to admit. Austerity will work here, still, but just. Much more debt, and we will be in a situation where no conceivable amount of economic growth – particularly given the Baby Boom demographics – could pull us out.

– RobM1981  Read more here.

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