The latest edition of BullionBuzz is out. Among the articles is one re Congressman Ron Paul's recent comments on US spending: Here is an excerpt: "The US State Department is building a $1-billion embassy in London; the plans even include a moat! This has Congressman Paul wondering about his government’s use of funds, especially given the difficult economic times. Many are unemployed; those who are employed worry about losing their jobs as they struggle to pay bills. Meanwhile, Washington talks about increasing taxes, something voters were promised would not happen during the Obama administration.

The US should be focusing on eliminating waste and preserving public funds rather than expanding the Federal budget. Most businesses have had to cut back in order to survive; the government should do the same. The administration has committed to doubling foreign aid, a promise that is likely to be kept despite the economic crisis. Paul asked Fed Chairman Bernanke about agreements with foreign central banks, and if he had discussed bailing out Greece, which he flatly denied. However, Bernanke recently announced the Fed will be looking into Goldman Sachs’ derivative agreements with Greece. Goldman Sachs has “too big to fail” status with the Fed, so it is conceivable that any Greece-related catastrophic losses at Goldman Sachs will once again be passed on to taxpayers. Perhaps most sinister are the revelations in Robert Auerbach’s Deception and Abuse at the Fed that $5.5 billion was sent to Saddam Hussein in the 1980s – money that allowed Iraq to build up its military machine to fight Iran prior to the first Gulf War, the same machine turned against Americans within just a few years.

Bernanke says it is “bizarre” to think that Americans at the Fed could engage in this type of behavior, which some have called criminal. However, Professor Auerbach served as a banking committee investigator, and an economist at the Treasury Department and at the Fed.  His claims are solidly backed by court rulings and other evidence. “We simply must keep pressing these issues and voicing our objections if we are ever to reverse our failed policies,” writes Congressman Paul." Read the Buzz here: BullionBuzz

The latest edition of BullionBuzz is out and you can find it here: BullionBuzz One of the articles is a piece by Richard Russell who discusses the role of gold today and the sorry financial state that the US has gotten itself into. Read an excerpt here: "A hundred years ago gold and silver were the only items accepted as money. Paper money was used because it was convenient as opposed to gold and silver, which are heavy. If you had any doubt about the paper, you could exchange it at any national bank for gold. And the dollar was backed by one of the strongest and most prosperous nations on earth. Today the dollar is backed only by the full faith and credit of the US, the greatest debtor the world has ever seen. Questions are now arising about the credit-worthiness of sovereign debt. Many analysts believe that the US will never be able to pay off its debt, which is not only rising but compounding. The Obama administration is putting off the solution of the debt and deficit problems to future administrations, a dangerous procedure that ensure future generations won’t have the fun and easy life this one has enjoyed. Today’s unsustainable debt is destroying the world, and the end will involve both deflation and monetary inflation through the production of fiat money. The survivor, the last man standing, will be gold."

The new BullionBuzz newsletter is out and as usual contains a number of good articles from different writers. This one by Peter Souleles looks at deficits ahead in the US and the need to own gold. Here is an excerpt: "The US government has approved a new debt ceiling of $14.3 trillion, an amount that can never be repaid but will one that will place increasing pressure on taxpayers as well as the world's economy. Ongoing deficits, rising interest rates, demographic speed bumps, stratospheric unfunded liabilities and the phenomenon of compounding will force the US government to renege on its promises. Alternatively, the nation will implode in an effort to meet those promises. The US government's debt is the greatest non-recourse loan in history, because it is not secured by anything; it's a credit card advance, and the cardholder keeps increasing the limit in order to keep spending." Read more here: BullionBuzz