Is it any secret that the new Obama administration has a very ambitious political agenda?

What is telling is that the new President touts that he is ‘on track’ and has a plan to over-spend by about $3.5 trillion over the next two years. This is hyper-spending of historical proportions. $3.5 trillion was the size of the entire National Debt in 1991. Therefore, Mr. Obama is on track to do in half of his Presidential term what took the United States over two hundred years to accomplish.

As if that were not enough, this administration’s agenda for socialistic overspending is estimated to create deficits of as much as a trillion dollars a year for the foreseeable future. Considering foreign central banks now appear unwilling to take more dollars as their reserves, the Fed must now monetize the debt because the private sector is unable to absorb that burden.

The Fed does have magical powers to create Federal Reserve Notes out of thin air to pay that debt. Unfortunately, that thin air is what will define the value of the dollar and lead to the next wave of monetary reality. Wealth invested in dollars is subject to the devastating result of monetary expansion . . . inflation.

The general public is becoming well aware that gold and silver may offer a safe haven from the magical powers of the Fed to devalue their wealth. It is mind boggling to consider what the price of real money, gold and silver, could cost over the next three to five years.