saveyourassetsfirst3 |
- GOLD AT A MAJOR CROSSROADS
- Confessions of a Liquidity Junkie
- God, Gold, Groceries, Guns
- Links 10/8/11
- Mervyns Pringle Problem
- Is a Local Bottom in Mining Stocks Materializing Right Now?
- Lehrmans five-step plan for getting back to a gold standard
- By the Numbers for the Week Ending October 7
- LISTEN – Gold & Silver Forecast 10.7.11
- WATCH: Stella – “Silver to $23.75″
- COMEX Commercial Silver Net Shorts Lowest in Eight Years
- Gold ETF Bulls Unfazed By Recent Drop
- COMEX Commercial Silver Net Shorts Lowest in Eight Years
- What The Euro Crisis Tells Us About Market Bottoms
- Today's entertainment: CEO explains why layoffs are absolutely necessary
- YUM Brands: Tasty Here, And Worldwide
- Outrageous economic facts every American needs to know
- COT Silver Report - October 7, 2011
- Unlike Paper Money, Gold and Silver NEVER Die
| Posted: 08 Oct 2011 06:00 AM PDT I think next week will mark a major turning point in the gold market. Depending on whether the dollar continues higher or turns back down we will either see a resumption of the D-Wave decline or this will just turn into a normal run-of-the-mill intermediate degree correction followed by another leg up in this 2 1/2 year C-wave advance. First the pros: The COT report has now reached a maximum bullish level on the commercial contracts. In the past this has always marked major bottom turning points.  Sentiment & breadth have reached extreme bearish levels (contrary indicator).   Chart courtesy of sentimentrader.com It's possible that gold has formed a small T-1 continuation pattern (A move followed by a sideways range often precedes another move of almost equal extent in the same direction as the original move. Generally, when the second move from the sideways range has run its course, a counter move approaching the sideways range may be expected.)  There is a small problem with this interpretation as the second leg of a T-1 pattern is generally slightly smaller than the first leg. The cons: The current intermediate cycle is too short. Barring a shortened cycle, which does occur rarely, there should be one more leg down into the normal timing band for an intermediate degree cycle bottom (20-25 weeks).   Also there is a much larger T-1 pattern in play that fits the normal parameters much better than the smaller version.  You can see from the chart above that unlike the smaller T-1 the larger version does feature a second leg slightly smaller than the first, and if this pattern is playing out then we need one more move lower to test the midpoint consolidation zone. Right now the battle is being fought at the $1600 level. So far every time gold reaches that level buyers step in.  If however gold closes below $1600 that would be a serious warning sign that the current daily cycle will be left translated and that gold is indeed caught in a true D-Wave decline. If that's the case it still needs to test the consolidation zone of the large T-1 pattern and the intermediate degree cycle will bottom in the normal timing band (November). If this scenario unfolds then we can look for an A-wave advance to begin once that final D-Wave bottom is in place. As I have noted before A-waves usually test but fail to exceed the prior C wave top. They are almost always followed by a lengthy 1-1 1/2 year consolidation before the next leg up can begin.  I've had quite a few requests for a trial subscription link, so I'm going to add a permanent trial subscription offer. $10 for 1 week of full access to the premium SMT report. If you decide you like the premium newsletter your subscription will automatically convert to the yearly rate after seven days. If not, just cancel your subscription prior to your week expiring by following the directions on the premium website homepage. To access the trial subscription click here and then click on the subscribe link on the right-hand side of the homepage.        This posting includes an audio/video/photo media file: Download Now |
| Confessions of a Liquidity Junkie Posted: 08 Oct 2011 05:40 AM PDT It is (at best) pathetic when we observe a hopelessly addicted junkie attempt to "justify" his/her addictive behavior. However, when that junkie wears very expensive suits and presides over (supposedly) one of the world's most prestigious institutions such behavior becomes both deplorable and intolerable. Who could warrant such an ignominious introduction? In a 21st century economy nearly decimated with the monetary depravity of Western bankers there is a long list of candidates. However, in this case I'm referring to the Bank of England's Chief Liquidity-Junkie, Mervyn King.
The actions of an addict are uniform and predictable. 1) When an addict has used-up his latest "fix" and begins to get the inevitable craving for more "junk" to feed the addiction, the addict never, ever acknowledges that his drug-use is the cause of the problem. Rather, the addict fixates on only a single thought: that getting another "fix" will temporary stop the withdrawal pains caused by that addiction. 2) During the addict's desperate quest for his next fix, the addict loses the capacity for rational thought. To the addict, "the future of the world" hinges on him getting more of his drug. 3) Lastly, the addict lives his life in perpetual denial. The addict never acknowledges that obtaining another fix never solves anything, but only makes the addiction worse. Most importantly, the addict absolutely refuses to ever consider the truth: that the only way to ever solve his problem is through weaning himself off of his drug. Viewed through this prism, King's words and deeds are nothing more than the rationalizations of a hopelessly-addicted junkie. What was King's justification after injecting himself (and the global economy) with another $110 billion of money-printing? "This is the most serious financial crisis we've seen, at least since the 1930's, if not ever. We're having to deal with very unusual circumstances, but to act calmly to this and to do the right thing." Let's concede King's point that this is "the most serious financial crisis…ever", since it is something which I fully believe myself. The remarks in themselves are proof of King's addictive mentality. First of all, King (like all addicts) refuses to acknowledge that it was excessive liquidity (and debt) which has caused all of the current financial problems. It is the most trite of tautologies that you "cannot put out a fire with gasoline". This brings us to the second, glaring deficiency in King's pseudo-logic: the complete absence of any "end game". While he is absolutely adamant that injecting himself with another fix was "the right thing" to do, he is utterly unable to identify a single way in which another fix will help to solve the problem in any way. |
| Posted: 07 Oct 2011 09:00 PM PDT LewRockwell |
| Posted: 07 Oct 2011 08:03 PM PDT Questions of Conflict in Pipeline Review New York Times Attackers Adjusting Tactics to Evade Reputation Systems ThreatPost. One of my buddies sold a block of Class B IP addresses about 3 years ago. He wished he could have held on to them, I suspect even more so now. Panel's Advice on Prostate Test Sets Up Battle New York Times. A friend of mine who worked for the NIH and had been a medical researcher earlier in her career described medicine as a medieval art. Doctors do not take it well when large scale studies of current practice show that there is no evidence that a particular procedure produces positive outcomes. Exclusive: Computer Virus Hits U.S. Drone Fleet Wired (hat tip reader Deontos) Full text: Moody's places Belgium's Aa1 ratings on review for possible downgrade Ed Harrison Investors turn bears on Germany and France Financial Times Mechanics of a euro breakdown FT Alphaville IMF Advisor Robert Shapiro: Prepare for Global Financial Meltdown Within Two to Three Weeks Alternet (hat tip reader furzy mouse) Businesses urge quantum leap to beat crisis Financial Times. This is really important if pressure is sustained. The big real economy forces are (rather late in the game) starting to push back against finanzkapital. This Michael Hudson article is a useful companion piece: From Marx to Goldman Sachs: The Fictions of Fictitious Capital. President Clears Wall Street Of Crimes masaccio, FireDogLake (hat tip orionATL) Romney Promises to Boost Defense Spending Bloomberg. As Tom Ferguson observed, "It's the Republican jobs program." Note the mention of increasing pressure on Iran. Glenn Greenwald discusses this further. The NYPD, now sponsored by Wall Street Salon (hat tip reader Deontos) Eric Cantor Condemns Occupy Wall Street 'Mobs': They're 'Pitting Americans Against Americans' (VIDEO) Huffington Post. In case you missed it. Bloomberg On OWS: They're 'Trying To Destroy The Jobs Of Working People' TPM. Oh, so MOTUs are now mere "working people"? Conservatives Support Protests George Washington. Erm, not sure whether "support" = "hopes to co-opt" Obama's Good Cop/ Bad Cop deal with the Republicans Michael Hudson. This is too close to conspiracy theory for my taste, but an interesting read. The obvious explanation is simpler: Obama was always a neoliberal/Rubinite, his true colors came out at the beginning of his Administration, when people prominent in his campaign who were prepared to be tough on banks (Volcker and Stiglitz, among others) were shunted aside and Geithner and Summers came to the fore. IRS Stingy With Whistleblower Payouts, Slow to Follow Up on Tips Bloomberg SEC Cop to Back Whistleblower's Claim Wall Street Journal Ignoring Massive Industry Fraud, Bank Of America CEO Hypes Benefits Of Faster Foreclosures Think Progress. This is bizarre on a couple of levels. First, Think Progress is an official Democratic party messager and apparently did not get the memo from Obama that banks did nothing wrong. Second, in the so-called $8.5 billion Bank of America settlement, BoA effectively gives up servicing of distressed loans to special servicers, who are required to manage foreclosures to strict timetables. Adam Levitin read it as an admission that BofA couldn't do the job (it was assumed that BofA would have to pay the special servicers more than it made in servicing fees to do the job). So why is Moynihan touting this, except maybe that the "speed is of the essence" message is an argument for letting the settlement go forward. Third, Moynihan posits a right to "make" a profit, not earn one (and this for running a entity that is so heavily subsidized that it can hardly be considered to be private enterprise) Mad at bank fees? Credit unions get another look Associated Press (hat tip Joe Costello) Checking Account Wars, Behind the Scenes New York Times Bank Transfer Day: Remember, Remember the 5th of November Lisa Derrick, FireDogLake. Ooh, this could be very interesting. Antidote du jour:
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| Posted: 07 Oct 2011 08:03 PM PDT Bullion Vault |
| Is a Local Bottom in Mining Stocks Materializing Right Now? Posted: 07 Oct 2011 07:30 PM PDT
Based on the October 7th, 2011 Premium Update. Visit our archives for more gold & silver analysis. There are times when we need to have the courage of our convictions, even when we are losing money in the process. (That's where the courage part comes in. Like Ernest Hemingway said: "Courage is grace under pressure.") We are still bullish on the precious metals sector in both short- and long term. Although the whole sector moved lower again early this week, important support levels remained firm. Many of our readers are probably concerned, as it is easy to get emotional at times of uncertainty. This is why we need to underline that although mining stocks took a hit, we have not changed our mind about our long position. If the situation was very oversold before, now it is extremely oversold. We are of a view that the precious metals sector is forming a bottom. Such pullbacks are healthy as they indicate gold has much, much farther to go. Corrections in a bull market are inevitable as death and taxes. Markets never go up in a straight line. By the time gold put in its most recent high on August 22 after its parabolic rise during August, it had logged a stunning 44% appreciation in calendar year 2011. And even after its recent fall, gold is still 22% higher than it was on its 2011 low, which took place on January 27. Does that mean that gold has further to fall, and that the tumble could be steep? To see whether gold and mining stocks are a good investment in the short-term as well as in the long run, let's move to the technical section of this essay. We will start with the long-term XAU Gold and Silver Index chart (charts courtesy by http://stockcharts.com.) In the very long-term chart XAU moved sharply lower early in the week to a level below the long-term rising trend channel. The 38.2% Fibonacci retracement level based on the 2008-2010 rally has been reached and this coincides with the 50-week moving average as well. With these two support lines in play, it seems that gold, silver and gold and silver mining stocks will likely rally. The XAU Index is now slightly above its rising support line and the recent breakout could be confirmed or invalidated in the days ahead. The bullish confirmation of the recent breakout appears more likely. In the long-term HUI Index chart, gold stocks are seen to have reached the lower target level we mentioned several weeks ago close to the 500 level. A quick reversal has seen the index move sharply higher and the upside target level appears to be around 580. The previous bottom was also confirmed by RSI levels. The outlook appears bullish from here. The short-term GDX ETF chart shows similar price action this week. A few resistance lines are being approached at this time and the closest is around $57. It appears that this initial resistance will probably be broken and a likely upside target level of $60.70 seems reasonable. Before summarizing, let's take a look how miners performed relative to the yellow metal. In the GDX:GLD ratio chart (if you're reading this essay on our website, you can click this chart to enlarge it) this week, we can see how the miners performed against gold. This week, the ratio touched and moved to the previous lows and quickly bounced back. In fact, we mentioned the 0.31-0.32 as the possible target for this ratio on Sep 16, 2011. It was not likely to be reached recently, however a decline to this particular level followed by a rebound is still not something overly surprising. The mining stocks have been on an extremely scary and volatile ride of late but their recent price action has not been a complete surprise. Although we would not say this was a most likely option, it was one which we knew was possible. Now that the support level has been reached, the odds of a subsequent rally are likely increased once the ratio breaks out above the declining trend channel and the move is verified. The situation therefore appears to be quite bullish at this time. In our previous essay on the possible gold rally we wrote the following: The SP Gold Stock Extreme Indicator flashed a buy signal. (…) Such signals were usually (…) very close to a local bottom each time (!) since 2008 and in most cases before this date. (…) not each and every bottom was indicated, but when we have actually seen SP Gold Stock Extreme Indicator flashing a buy signal, each time a short-term rally followed. What we have seen right now is a very strong buy signal. (…) based on multiple factors, including charts and indicators, it appears that we are close to or have already seen a major bottom in gold. Summing up, the situation in mining stocks has become very bullish and it appears that higher prices will likely be seen very soon. To make sure that you are notified once the new features are implemented, and get immediate access to my free thoughts on the market, including information not available publicly, we urge you to sign up for our free e-mail list. Gold & Silver Investors should definitely join us today and additionally get free, 7-day access to the Premium Sections on our website, including valuable tools and unique charts. It's free and you may unsubscribe at any time. Thank you for reading. Have a great and profitable week! P. Radomski * * * * * Interested in increasing your profits in the PM sector? Want to know which stocks to buy? Would you like to improve your risk/reward ratio? Sunshine Profits provides professional support for Gold & Silver Investors and Traders. Apart from weekly Premium Updates and quick Market Alerts, members of the Sunshine Profits' Premium Service gain access to Gold Charts, Gold Investment Tools and Analysis of Gold & Silver Prices Naturally, you may browse the sample version and easily sign-up for a free weekly trial to see if the Premium Service meets your expectations. All essays, research and information found above represent analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mr. Radomski and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above belong to Mr. Radomski or respective associates and are neither an offer nor a recommendation to purchase or sell securities. Mr. Radomski is not a Registered Securities Advisor. Mr. Radomski does not recommend services, products, business or investment in any company mentioned in any of his essays or reports. Materials published above have been prepared for your private use and their sole purpose is to educate readers about various investments. By reading Mr. Radomski's essays or reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these essays or reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise that you consult a certified investment advisor and we encourage you to do your own research before making any investment decision. Mr. Radomski, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
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| Lehrmans five-step plan for getting back to a gold standard Posted: 07 Oct 2011 05:42 PM PDT |
| By the Numbers for the Week Ending October 7 Posted: 07 Oct 2011 02:20 PM PDT Just below is this week's closing table, followed by the CFTC disaggregated commitments of traders (DCOT) recap table for the week ending October 7, 2011.
Continued… Vultures, (Got Gold Report Subscribers) please note that updates to our linked technical charts should be done by the usual time, (18:00 ET) on Sunday. No Got Gold Report this weekend as previously disclosed. We beg our reader's indulgence as we prepare for the NOIC.
All of the trader's positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report.
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| LISTEN – Gold & Silver Forecast 10.7.11 Posted: 07 Oct 2011 01:03 PM PDT
Gold and Silver Forcast Much more @ KEReport
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| WATCH: Stella – “Silver to $23.75″ Posted: 07 Oct 2011 12:59 PM PDT Triple bottom, key level violation, loss of support, and taking the short side of silver @ $31. ~TVR |
| COMEX Commercial Silver Net Shorts Lowest in Eight Years Posted: 07 Oct 2011 12:05 PM PDT COMEX Commercial Silver Net Shorts Lowest in Eight Years I tried but the formatting gets messed up too much when I try to copy/space. Article and charts here. http://www.gotgoldreport.com/2011/10...ht-years-.html |
| Gold ETF Bulls Unfazed By Recent Drop Posted: 07 Oct 2011 09:58 AM PDT By Tom Lydon: The decline in precious metals prices last month hasn't scared away investors with a long-term bullish view on gold exchange traded funds. Gold ETFs are down more than 10% over the past month. However, managers of the best-performing commodity funds think gold prices will remain strong as investors seek out safe havens in a slowing economy, Reuters reported Friday. "Our conclusion of the last month is that gold is not immune in a very negative global commodity and equity market environment, which was similar to the autumn 2008 experience," said Peter Sigg, head of investment management for commodities at LGT Capital Management, in the report. Russ Koesterich, iShares global chief investment strategist at BlackRock, said the key fundamental factors driving gold remain in place. He listed negative real interest rates after inflation, currency Complete Story » |
| COMEX Commercial Silver Net Shorts Lowest in Eight Years Posted: 07 Oct 2011 09:52 AM PDT Special Got Gold COT Flash Report --Large traders the CFTC classes as "commercial" report lowest combined net short position for silver since April 1, 2003. --COMEX Commercials reduce net short bets on silver by 60% past month as silver drops 28.5% - position suggests low confidence in lower silver prices. To put the silver changes in our usual format, as silver fell $1.84 or 5.8% Tuesday to Tuesday, from $31.88 to $30.04, commercial traders reduced their collective net short positioning by a large 5,339 contracts (22%) to show just 18,923 contracts net short. The total open interest edged 912 contracts lower to 101,102 open.
Indeed, we have to go all the way back to April 1, 2003 to find a lower commercial net short position for silver futures (15,845 contracts then with silver then $4.43). Just below is a much longer term chart of the silver LCNS for reference. Apologies are in order. This is a very large chart and it has to be reduced quite a bit to appear in this format.
The last time that the relative commercial net short positioning was below a very low and very bullish 18.7% was also in that April 1, 2003 COT report, when the LCNS;TO came in at 17.8% (with $4.43 silver). Clearly we can say that the large commercial traders have taken advantage of the current drop in the silver price to get the heck out of a huge portion of their formerly underwater net short positions. Indeed, as of Tuesday, they had reduced their net short positions to the equivalent of where they were with silver bottom hugging at $4.43 eight years ago.
Does that mean that silver is set to rally sharply? No, not necessarily, of course. Anything is possible short term, especially with all the angst out there and potential black swans circling (and landing). But what we think it does mean is that the heaviest of the "heavy hitters" in silver futures are positioning as though they really don't want to bet on a falling silver price very much. As a matter of fact, in the Bank Participation in Futures report, issued monthly by the CFTC, we note that the less-than-four reporting U.S. banks in silver futures reported a net short position of "only" 14,388 COMEX contracts, a reduction month-on-month of 9,471 lots (39.7%) to their smallest nominal net short positioning since July 1, 2008 – just ahead of the 2008 Panic (6,177 contracts net short then with silver then $18.10).
Interestingly, although the U.S. banks are at their lowest nominal net short positioning for silver futures in three years, what net shorts they still have actually rose as a percentage of all commercial net short positions – from 50.44% to a relatively high 76% as of Tuesday. That is in part because the commercial net short position is itself quite low at "only" 18,923 contracts net short.
Bottom line: The market price of silver is liable to do anything very short term, but the largest of the largest commercial traders are positioning as though they believe that silver has a great deal more upside than the opposite. For the week silver down $1.84 or 5.8% - LCNS down 5,339 or 22% - to the lowest LCNS in 8 years. This suggests little confidence by the comercials in lower silver prices looking ahead.
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| What The Euro Crisis Tells Us About Market Bottoms Posted: 07 Oct 2011 08:43 AM PDT By Andrew Sachais: With the coming of October and Q3, the markets are quickly approaching 2010 support levels. Looking at the last 12 months, equities both here and in Europe have seen declines that suggest a bear market. With regards to the Europe 350 index, it has seen declines of 30.6% off of its 2011 highs. This is due in part to the poor response by their policy makers of handling the sovereign debt situation, as well as the uncertainty that holds much of the world captive at this point. The S&P 500, on the other hand, has seen a less pronounced loss compared to its European counterparts. The 18.6% decline witnessed earlier this month borders the 20% bear market threshold; however, it has not yet been breached. The domestic situation concerning political dissonance and further dollar devaluation seems to have subsided somewhat, yet the global problems still remain. Regardless, over the past Complete Story » |
| Today's entertainment: CEO explains why layoffs are absolutely necessary Posted: 07 Oct 2011 07:58 AM PDT From The Onion: As the fifth plate of his 10-course, $150 prix fixe tasting menu dinner was carefully placed on the manicured table in front of him, Kohl-Strauss Media Group CEO Tom Byatt reportedly told a colleague Tuesday that in order for the company to stay afloat in this adverse economic climate, staff layoffs would likely be necessary. "The fact of the matter is, our financial outlook is just not what it used to be... And if we want to keep the lights on, we're going to have to start making some tough choices," said Byatt, cutting into a piece of seared foie gras subsumed in a rich pheasant consommé. "Personally, I wish we could keep everybody. But unfortunately, I'm in the position of having to decide what the best direction for our company is, and I don't see any other option than reducing our overall cost structure and finding some way to trim payroll." "It's far from an ideal situation, but we have to cut corners somewhere," Byatt added as a second waiter arrived with a $110 bottle of Chˆteau Figeac from the wine cellar. "That's just a reality of... Read full article... More entertainment: Hilarious video shows the media is still completely clueless about gold Today's entertainment: Obama earns money for the U.S. by appearing in a Japanese TV commercial Today's entertainment: Drunken Ben Bernanke tells everyone at neighborhood bar how [expletive] the U.S. economy really is |
| YUM Brands: Tasty Here, And Worldwide Posted: 07 Oct 2011 07:52 AM PDT By Robert Weinstein: Yum Brands, Inc. (YUM), together with its subsidiaries, operates as a quick service restaurant company in the United States and internationally. The company was founded in 1997 and is headquartered in Louisville, Kentucky. Compared to the S&P 500, the year to date difference is 12.79%. At $49.28, YUM is currently below the 200 day moving average of 51.95, and below the 60 day moving average of 52.16. YUM is especially appealing to me because of the upcoming $0.28 dividend. Time is of the essence as the stock becomes ex-dividend on October 12, 2011. YUM margins are under some pressure in China due to food inflation, but overall the company is firing on all cylinders. YUM dividends appear to be safe even as margins become tighter. Last quarter, the payout was only 40%. Also, if the RMB appreciates against the dollar due to monetary policy or relative inflation, the reported profits Complete Story » |
| Outrageous economic facts every American needs to know Posted: 07 Oct 2011 07:51 AM PDT From The Economic Collapse: The U.S. economy is dying and most American voters have no idea why it is happening. Unfortunately, the mainstream media and most of our politicians are not telling the truth about the collapse of the economy. This generation was handed the keys to the greatest economic machine that the world has ever seen, and we have completely wrecked it. Decades of incredibly foolish decisions have left us drowning in an ocean of corruption, greed, and bad debt. Thousands of businesses and millions of jobs have left the country and poverty is exploding from coast to coast. We are literally becoming a joke to the rest of the world. It is absolutely imperative that we educate America about what is happening. Until the American people truly understand the problems that we are facing, they will not be willing to implement the solutions that are necessary. The following are the top 100 statistics about the collapse of the economy that every American voter should know... Read full article... More on the economy: Top employment firm: Worst job cuts in two years coming Top economists agree: This is not a recession... It's a depression Don't worry about the fall in gold... This is what you should be watching instead |
| COT Silver Report - October 7, 2011 Posted: 07 Oct 2011 06:41 AM PDT COT Silver Report - October 7, 2011. |
| Unlike Paper Money, Gold and Silver NEVER Die Posted: 07 Oct 2011 05:41 AM PDT From Gabriel M. Mueller of Gold Money: But what does it matter, really? Gold and silver are not short-term investments. They are not get-rich-quick schemes – quite the opposite in fact. They are long-term hedges against both inflation and currency debasement. For centuries, gold and silver have been the ultimate store of value, and the truest forms of money. Simply put, they are worth their weight, and will bounce back strongly from their recent price setbacks. The reason why is because the long-term outlook for gold (and silver) is incredibly bullish. Our current financial and economic systems are both unsustainable and unsolvable. They are unsustainable because fiat-paper currency itself – the present monetary standard for the entire world – is a system based on faith and, once that faith is lost, so goes the value of that fiat-paper currency. They are unsolvable because our governments – especially in the United States and in Europe – refuse to accept the only two possibilities which remain: they can either a) admit that their fiat-paper currency system is solely based on faith (and then watch it all fall apart) or b) fail to admit that there is a problem with fiat-paper currency and continue to spend billions upon billions upon trillions (and then watch it fall apart). In either case, the end is the same: a worthless piece of paper.
But for those who hold gold and silver, they need not worry about having faith or confidence. Why? Because they have something real. They have something which has been money for over 6,000 years. They have something which is virtually indestructible. They have something which can be easily divided and then those divisions exchanged for a variety of other real and tangible assets. They have something which nearly all persons, since Aristotle to President de Gaulle, have deemed valuable and true. They have gold. And in the long run, that's counted for an awful lot. Much more @ GoldMoney.com |
Option "b" seems to be the route our governments and central banks have chosen to take. For instance, in the United States, financial programmes like quantitative easing are just fancy names for plain and simple money printing, with the same policy also evident in Europe and Japan. In fact, it soon becomes evident in any country or region with a fiat currency that runs into serious debt issues.| You are subscribed to email updates from Gold World News Flash 2 To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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