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There is a simple logic behind gold coins as an investment: they are protection from the government’s ill advised meddling in the economy.

January 28, 2011 – There is a simple logic behind gold coins as an investment: they are protection from the government’s ill advised meddling in the economy. Trillions of dollars have been wasted “propping up the industries that need to be cut down to size – finance and housing,” says Bill Bonner in The Daily Reckoning.

At the root of the problem is the misconception that we are slowly recovering from a recession. Bonner sees it as a “Great Correction,” which is vastly different. A recession is just a temporary slowdown in an otherwise robust economy, a normal phase of the economic cycle. What we are experiencing, however, is a major change in conditions that mandates a fundamental shift in the direction our economy is taking.

Over the past decade millions of manufacturing jobs were shipped overseas while we were pacified with the illusory promise of new, higher paying jobs in the service sector. For a while the housing boom helped sustain the illusion putting millions to work constructing more homes than the market could realistically handle. Both household and government debt soared fueled by strong and steady income. But the bubble had to burst.

As unemployment rose state revenues fell and the snowball was rolling. Today deficits still far outpace growth, unemployment is not improving, and the housing market is entering the second dip – all while the government keeps pushing the economy in the wrong direction.

The economy can “recover” only back into the same bubble. We must take our lumps and do whatever is necessary to redirect the economy according to these new conditions. But the government persists with its deception, preventing people from making “the sort of changes that they need to make – in their personal finances and in their investments.”

Topping the list of those changes should be investment in gold coins.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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