NIA Officially Declares Gold and Silver Mania is Here

FORT LEE, N.J., Sept. 8 /PRNewswire/ -- The National Inflation Association
today released the following statement to its http://inflation.us members:

"While the mainstream media has officially declared the U.S. recession over
and an economic recovery here, NIA believes what the media sees as an economic
recovery is nothing but inflation. We believe the U.S. recession has just
begun, but declare that gold and silver mania is officially here. Of course,
this is just the first inning of gold and silver mania. The mania won't reach
its height until everybody you know who invested into the real estate bubble,
abandons real estate and starts investing into gold and silver.

Last year during the U.S. financial crisis, Americans rushed out of stocks and
real estate and into U.S. dollars as a safe haven. Unfortunately, these
Americans who already lost so much in stocks and real estate, will soon get
hit by a hyperinflation tidal wave that washes away what little wealth they
have left. The only people who will survive are those who wake up and realize
that gold and silver are the only real safe havens because the Federal Reserve
can't print them out of thin air; gold and silver supplies will always be
scarce.

Gold prices today reached a 18-month high of $1,009.40 per ounce and silver
reached a 13-month high of $16.86 per ounce. While current gold and silver
prices may seem expensive to some, they are still a long way off of their 1980
inflation adjusted highs of $2,300 and $130 per ounce respectively, and we
believe inflation will soon get much worse than the 1970's.

The Federal Reserve has held interest rates at 0% for the past nine months
while taking trillions of dollars of worthless mortgage-backed securities,
student loans, credit card loans, and auto loans onto its balance sheet. This
has caused a temporary bounce in our financial markets, with the Dow Jones
index up 47% from its March low. The media sees rising stock prices as a sign
the economy is recovering, when stocks are only recovering as a result of the
Federal Reserve running its printing press non-stop and overloading the system
with excess liquidity. We cannot have an economic recovery when real
unemployment in the U.S. is now up to a 26-year high of 17%.

The Dow Jones priced in gold fell from a high of 44 in 1999 down to a low of 7
this year. Since then, the Dow to Gold ratio has bounced to 10 and is
currently 9.5, but we believe the economy won't truly be at a bottom until the
Dow to Gold ratio falls to 1 like it did in 1980. It took seven years from the
time the Dow to Gold ratio fell to 7 in 1973, to when it finally bottomed at 1
in 1980. Therefore, don't expect to see gold prices meet the Dow Jones in the
short-term, but we do believe it will happen within the next 5 to 10 years. In
1973, the Dow to Gold ratio saw a bounce from 7 to 10 just like it did this
year, but its next move was down to 4 a year later. If history repeats itself,
we could potentially see Dow 8,000 and Gold $2,000 in 2010.

The U.S. budget deficit this year is expected to reach $2 trillion. Obama
talks about cutting the budget deficit in half by the end of his first term,
but this won't be possible when interest rates will surely rise and cause the
interest on our national debt to be trillions of dollars per year. It's insane
to think that Obama wants to spend a reported $1 trillion a year on health
care reform. Of course, if the government projects they will spend $1 trillion
a year on health care, they really mean $2 trillion or more. There is no way
this spending will be possible unless Bernanke prints the money up and creates
massive inflation.

Gold and silver investing has for years been looked at as risky and
speculative, but soon perceptions will change and Americans will look at
dollars as being the riskiest asset of all. Our documentary Hyperinflation
Nation surpassed 200,000 views today. We are happy to have already helped
200,000 people prepare for hyperinflation, but we need to help millions more
so that the U.S. doesn't become the next Zimbabwe."

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.

SOURCE National Inflation Association

Gerard Adams of National Inflation Association, 1-888-99-NIA US
(1888-996-4287), or Staff, Editor@inflation.us