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Gold continues to remain strong and
stabilizing in the 900 plus dollar range.
The economic crisis and the total
screw up of our national leaders has created a financial climate that will
help move gold to its highest run the price of gold has ever experienced.
The gold market has changed. Gold is
being driven by a flight to quality. Governments are deliberately creating
inflation to negate the effects of deflation. Quite frankly, the US dollar is
no longer the safest investment any more. Gold is.
Gold has become wealth insurance.
Banks are being nationalized as their central banks increase their physical
gold reserves. The world financial system is crashing down before us little
by little. The fact is we have entered a depression. Close to 14
trillion dollars has been injected into the financial system.
See any improvement?
The only people who are going to
survive are those who own gold and silver. Gold prices will move higher after
stabilization. Buying gold is still a prudent strategy as prices could be
substantially higher by the end of 2009. Gold investment continues to grow
appreciably. Gold will be the most favored investment for 2009.
Bill Buckler – “As we said
here last week, Gold is simply "waiting in the wings". It's call to
centre stage may come with the announcement of Mr Obama's stimulus package
early next week. It may come in the aftermath of Secretary of State Clinton's
visit to China late next week. Or it may come when the Fed finally bites the
bullet and starts to actively monetise the debt paper pouring out of the US
Treasury, a move they have been publicly contemplating since late last year. But
come it surely will.”
the-privateer.com/gold6.html
Bloomberg reports that gold could soon
pass the $2,000 per ounce mark as economic rises gets worse. Citigroup has
also predicted that gold could reach 2,000 by years end. It almost seems
amusing that we are still discussing the “coming” depression
because of the fact that it is already arrived and settling in. Really, what
this entire new “era” is all about is watching our dreams
deteriorate right before our eyes.
Want to hear what the real world is
like today? Country star John Rich dramatizes this well in his new song,
“They’re Shutting Detroit Down.”
John Rich – “They're out
there losing millions and it's up to me and you to come running to the
rescue. Well pardon me if I don't shed a tear/they're selling make believe
and we don't buy that here/cause in the real world they're shutting Detroit
down, while the boss man takes his bonus pay and jets on out of town/DC's
paying out the bankers as the farmers auction ground/while they're living it
up on Wall Street in that New York City town, here in the real world
they’re shutting Detroit down.”
My favorite line is – “the boss man takes his bonus pay and jets
on out of town.”
Wow! All these collapsed
dreams! All the thousands of baby boomers with calloused hands looking
at 50% reduced portfolios. What’s a mother to do? Well, there’s
always Wal-Mart. And McDonalds needs someone to keep their tables clean. And
let’s not forgot The Waffle House.
An old trusted stand in. Work as a
short order cook for 60 hours a week. The opportunities are endless for those
with empty bank accounts.
It
seems that the majority of us are just not destined to move forward. How many
thousands of thousands of heads of households are looking at the devastation
of their 401K portfolio? It’s not easy to forget the glory days
of the past as they lose their home and lose their savings. I see eventually
Hooverville shacks lining vacant lots. Made up of cardboard and bits of old
trash taken from local garbage. This is our future?
“The Federal Reserve on
Wednesday sharply downgraded its projections for the country's economic
performance this year, predicting the economy will actually shrink and
unemployment will rise higher.” “The bleaker outlook
represents the growing toll of the worst housing, credit and financial crises
since the 1930s.” “…unemployment—now at 7.6 percent,
the highest in more than 16 years—will keep climbing and stay elevated
for quite some time, the Fed predicted.”
breitbart.com/article.php?id=D96E5TL82&show_article=1
All the stimulus packages will
ultimately bring hyperinflation. In a year, in two years? What does the
time line really matter? This is the middle class and the poor class. This
financial crisis has been predicted for quite some time. Still, when it
actually occurs there is no way you can be totally emotionally prepared. And
like a boulder rolling down hill it will only continue to grow worse in the
foreseeable future.
“The US government may have to
nationalize some banks on a temporary basis to fix the financial system and
restore the flow of credit, Alan Greenspan, the former Federal Reserve
chairman, has told the Financial Times. In an interview, Mr. Greenspan, who
for decades was regarded as the high priest of laisser-faire capitalism, said
nationalization could be the least bad option left for
policymakers.” “…policymakers across the political
spectrum appeared to be moving towards accepting some form of bank
nationalization.” “If nationalization is what works,
then we should do it.”
ft.com/cms/s/0/e310cbf6-fd4e-11dd-a103-000077b07658.html
Is this economic collapse going to
continue? Will the world wide economy continue to go down hill? There is
a continuing global imbalance in the world that only continues to increase in
size. Production and industry will always be the real key to a
country’s long term and real prosperity. Is the US going to be able to continue to service its growing debts? Few can really comprehend the
fate that lies ahead for the North American group of nations.
The collapse in employment is across
the board and affecting all industries. Only in the health care sector and
social aid has there been any increase and demand for employment. 2009 is
expected to be a bad year for employment losses. Probably, the unemployment
numbers are even higher than the government statistics state. America’s problems continue to be the result of the expansion of the money supply. Instant
gratification with the tragic results further down the corner. And there just
isn’t the increase in productivity the increase of the money in
circulation needs. Many professional jobs continue to leave this country
making the unemployment figures higher. Corporations are responsible for
expanding work visas allowing many foreigners to come to the US and work in the technical sector competing for computer programming and engineering
positions. Cheaper foreign labor.
“You've probably never wanted
expert insight more than today - and never trusted it less. After all, the
intelligent, articulate, well-paid authorities voicing these opinions are the
ones who created the crisis or failed to predict it or lost 30% of your
401(k) in it.” “…we can't shake the belief that elite
forecasters know better than the rest of us what the future
holds.” “And wrong they usually were, barely beating out a
random forecast generator.” “Ironically, the more famous the
expert, the less accurate his or her predictions tended to be.”
money.cnn.com/2009/02/17/pf/experts
Many are expecting a double digit
unemployment rate by the end of this year. Of course the solution to all
these problems per government recommendation is more debt piled on top of even
greater debt. The US Treasury must find buyers for over 2 trillion in new
debt in 2009 alone. How is this financial slowdown different from other
economic slowdowns? This time the markets are dragging the economy down. The
depression of 1929 is thought to have been created by the tightening of
credit. That is why Fed Chairman Bernake is cutting interest rates and
throwing trillions of dollars at the economy. The problem is the people and
industries are not spending. The problem is a growing fear in the market
place. And when markets are in fear they do not spend money.
Click
here to order Gold Letter
Inflation is coming and gold will
eventually rise in this environment. Inflation is the best scenario for
higher gold prices. Gold is still going to be around even after all this
economic mess settles down a bit in twenty years.
David Vaughn
Editor,
Gold Letter, Inc.
www.goldletterdv.com
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