No Economic Recovery in Sight, Only Inflation

FORT LEE, N.J., May 11 /PRNewswire-USNewswire/ -- The National Inflation
Association yesterday released the following statement to its
http://inflation.us members:

"Wall Street would like you to believe that the Dow Jones' recent 33% rally
from March's low is due to improving economic fundamentals, but it is our
belief this rally is due to nothing but inflation.

"Jobs data released on Friday shows that U.S. employers cut 539,000 jobs in
April, the fewest since October. However, these numbers were artificially
strong due to the U.S. government increasing their payrolls by 72,000, which
included the hiring of about 60,000 temporary workers in preparation for the
2010 census.

"Government jobs are non-productive jobs that normally get paid for by
taxpayers. However, because the U.S. already has a huge budget deficit with
tax revenues likely to decline substantially, these jobs will be paid for
through inflation. An increase in government jobs is not a sign that the
economy is improving, but only a sign that we are digging our economy into a
deeper hole that will ultimately lead to the U.S. dollar collapsing.

"Even Warren Buffett, who is a huge supporter of Obama and has defended his
economic policies, said last week that with political leaders showing little
inclination to raise taxes, the only way to pay for excess spending will be by
inflating the currency and shrinking the value of the dollar.

"The worst of the recession is not behind us. Nominally, anything can happen
to the Dow Jones. If the Federal Reserve prints enough money, the Dow Jones
could go back to 14,000, but it won't mean anything if it costs $2,000 to fill
your refrigerator with groceries.

"When the Dow Jones fell below 6,500 in March, we were at a point where
everybody was afraid to own stocks; but we were telling you that the biggest
risk was holding onto U.S. dollars. When you own shares of a stock, at least
you own an actual percentage of a company. When you own U.S. dollars, you own
a piece of paper that is backed by nothing but faith and confidence that it
will always be accepted as money.

"By the Federal Reserve printing trillions of dollars out of thin air,
Americans are beginning to lose their confidence in the U.S. dollar and the
chart of the U.S. dollar index has been starting to break down. Soon,
everybody will be afraid to own dollars and the longer the Federal Reserve
keeps interest rates at 0-0.25%, the greater the chances are that
hyperinflation is in our future.

"The only way to determine the true value of the Dow Jones is priced in gold.
Today, the Dow Jones is worth 9.35 ounces of gold. In 1980, the last time we
had an inflationary crisis like the one we are rapidly approaching, the Dow
Jones reached a low of 1 ounce of gold.

"It is impossible to predict how high gold will go. Our guess is gold will
probably reach $5,000 per ounce and the Dow Jones will fall to around 5,000
within the next 5 years, but there are many other ways we could forecast the
potential value of gold besides the Dow/Gold ratio.

"Gold's high in 1980 of $850 per ounce would be approximately $2,300 per ounce
in today's dollars. However, in 1980 we were the world's largest creditor
nation. Today, we are the world's largest debtor nation so surely we believe
gold is going a lot higher than $2,300 per ounce.

"Gold started the 1970's at only $35 per ounce and when it reached $850 in
1980 it equaled a percentage gain during the decade-long bull market of
2,329%. Gold's low in 2001 was $256 per ounce. If we see gold make the same
percentage gain during its current bull market, we will be looking at $6,200
per ounce gold.

"Another way to calculate the potential value of gold: the U.S. currently has
$1.56 trillion in M1 money supply, which measures the most liquid forms of
money held by the public and includes currency, checking accounts, travelers
checks, and other deposits against which checks can be written. If the U.S.
decided to make each dollar redeemable by the amount of gold it possesses
(286.9 million ounces) it would value gold at $5,437 per ounce.

"NIA believes gold prices must go up. Total bailout commitments by the Federal
Reserve and Treasury have now reached $13.4 trillion of which $2.9 trillion
has already been spent. Most of this money is being hoarded on the sidelines
but soon we believe Americans will rush to spend their dollars all at once.
With all of the corruption in stocks and real estate, precious metals will be
the only asset class Americans will trust to store their wealth.

"In our opinion, the current bubble in the U.S. treasury market is bigger than
the dot-com and real estate bubbles at their peaks combined. When the U.S.
dollar starts to crash, we believe the boom in precious metals will be bigger
than the dot-com and real estate booms combined; but unlike those booms, gold
and silver prices could remain at a permanently high plateau because there
won't be any way to reverse the effects of inflation."

Please spread the word about NIA and have your friends subscribe for free at
http://inflation.us.

About us:
The National Inflation Association is an organization that is dedicated to
preparing Americans for hyperinflation. The NIA offers free membership at
http://www.inflation.us and provides its members with articles about the
economy and inflation, news stories, important charts not shown by the
mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul,
Peter Schiff, and others; and profiles of gold, silver, and agriculture
companies that we believe could prosper in an inflationary environment.

Contact: Gerard Adams
1-888-99-NIA US (+1-888-996-4287)
Staff:
Editor@inflation.us

SOURCE National Inflation Association

Gerard Adams of the National Inflation Association, +1-888-99-NIA US
(+1-888-996-4287), or Staff: Editor@inflation.us