-- Posted Tuesday, 10 August 2010 | Digg This Article
| | Source: GoldSeek.com
Well, for the past decade gold rose from 250 an ounce to over 1,000 an ounce.
We experienced the various bubbles popping during the latter years between 2000 and 2010. Simple logic easily predicted pretty much the course of the last decade. But this next decade between 2011 and 2020 is going to be tricky. The crash we experienced in 2008 is still growing and is not going to go away until the last printing press breaks. For those who believe inflation is forever in the bag? Yeah, right.
Now, we’re experiencing the final bubble popping. Pop, pop, pop. And this is the final bubble for which there are no more magic bullets. The only thing that has slowed this bubble down these past couple of ears is the huge infusions of trillions of dollars being freely given to the big banks and billionaire investors. And of course no strings attached.
Think about it. The last bubble and only an artificial creation of paper floating from the sky above. Glad its not gold falling from the clouds or we’d be dead.
And the middle class, as always, being left out in the rain. Losing jobs held for years. Losing their homes with mortgages that are upside down and every dollar once calculated as equity in those homes literally disappeared over night.
All the best jobs disappearing and still heading east to cheaper labor. And all the lower end service jobs also passing to cheaper labor. So, where does the American worker find a job? Professional jobs heading across the ocean and the lower service job going to those who will work for pennies on the dollar. Our children are out of luck.
But lets look to Kitco as they have a better finger on the pulse for the future and continued direction of gold.
Jon Nadler - “The good news? By the end of 2012 there will not be a need to worry about 2015. This, according to the Mayan calendar. Its adherents are loading up on party supplies as we speak.” kitco.com/ind/nadler/aug092010.html
I think I detected a bit of humor there but its well deserved. Maybe we could just skip officially the year 2012 and go straight to 2013. Definitely take a lot of confusion and fear out for the markets.
The strategy that only ever works when applied to gold long term is a simple, honest and objective look at the fundamentals. Lets dablle with a simple play of words. The word “billions” use to bring out chills in peoples backside. Now even the mention of the word trillions means nothing. Simply another word. We grow more comfortable with every day. Greater and more debt? And into the trillions? Its funny how quickly people begin to be comfortable with crisis.
As long as the chicken can make it into the crock pot in time for dinner. Now that would constitute a problem. Want to hear something silly and stupid? Many think buying gold in anticipation for inflation is silliness. Life insurance is also silly. Really now. How many of us really die today anyway. I see these nice looking station wagons sneaking into cemeteries during the day but I always assumed these folk to be new the grass cutters. Yes, how silly to believe in death and inflation. Better to believe in Santa Claus.
The discussion of inflation is really not a bug bugaboo. It is actually a component of history that has repeated itself thousands of times down the centuries. But we are different right and our financial empire will last for ever we all are so very certain. The empire of Chad, around, 2000 BC, how long did it last? Remember Babylon and those hanging neat gardens? Yep. It fell too. Remember the power of Great Britain who in the year 1901 had an empire that always was touched by the sun regardless of the time of day? Uh. Uh. I think Soros finished that little bugger off.
Is it really wise to hedge our holdings with physical gold? Yes, people with real brains are asking these silly questions. Maybe this ongoing rush to gold is being copied by those silly ones that actually believe there are buried bodies hidden below those beautiful lawns we call cemeteries. And this is why our ultimate financial crash will eventually fall on top of our pour heads. So many believe there just ain’t no acorns hovering over our heads ready to drop.
How about what the masters have to say about the future of the direction of gold? A lot of people don’t really understand these people as I do. These are a devout, religious group of people made much as the Amish. I understand that many of the Rothschild’s are going back to their roots and establishing vegetable and dairy farms in upper Pennsylvania country. I believe the major difficulty is the sects vow to with hold from any future use of soap in the future.
But God will bless these wonderful people as He always has. The Rothschild’s do make the market in gold. A humble people. Made strong in the ghettoes of ancient Germany. Their life style has shown a proven disdain of worldly riches and massive wealth and power. And the family has a great respect for paper choosing its use very conservatively except in places of need such as the Federal Reserve Bank. Time folk quit picking on them and started trying to understand them.
David Rockefeller or a much younger Rothschild will be the tar baby (Tar Czar?). And of course the conspiracy goes that just as soon as they get that monopoly on all that tar all of us are going to become “tar babies.”
Physical gold will continue to be an excellent insurance as the Fed crashes the US dollar. Its not as important how high gold may temporarily rise as the knowledge that it is going to maintain its rate of value while the stock market crashes.
Fear and greed ultimately are the defining events controlling the price of gold. The Chinese are continuing to play an ever greater role in the gold market. According to the World Gold Council Chinese gold consumption is expected to about double in another 10 years.
Just how bad is it around the country and our present infrastructure as a nation quickly running out of money and beginning to experience hard times? The Governor of Wyoming is threatening to sell a chunk of Grand Teton US national park unless the White House up some more money.
Portland health inspectors wants to tax a 7 year old girl for having a lemonade stand. Portland needs the 160 bucks license fee to help get the city get out of hock. BETTER HOLD ONTO GOLD!
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David Vaughn
Gold Letter, Inc.
David4054@charter.net
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-- Posted Tuesday, 10 August 2010 | Digg This Article | Source: GoldSeek.com
