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Our world is
becoming ever more a dangerous place to live.
Now, our own president cannot
carry out his duty without having to swerve to avoid a thrown shoe. But, wow,
did it leave his hair disheveled. Needs a haircut anyway. Too long and
shaggy. George, look out for those thrown shoes! But what about that debate
over who will take precedence…deflation or inflation?
Jim Rogers, 10-22-2008 –
“Throughout history, whenever you've had gigantic amounts of paper money
created, it's led to inflation down the road. Things are going down now
because of forced liquidation but that's not deflation, that's temporary, Jim
Rogers, CEO of Rogers Holdings said.” jimrogers-investments.blogspot.com/2008/10/jim-rogers-video-interview-october-2008.html
And another shoe!
Kind of reminds me of that
movie classic came out about 10 years ago. George, George, King of the
jungle, strong as he could be……looook out for that tree!!!! I do believe that
American presidents are given extensive training what to do when an Arab shoe
comes propelling itself through the air headed straight for your nose.
“The Fed is sending a message
that it will print money to an unlimited extent until it starts to see the
economy expanding…”
bloomberg.com/apps/news?pid=20601087&sid=aHtjzkdBhlrI&refer=worldwide#.
You could tell the Special
Forces training our American presidents receive while in office. Never for a
moment was there fear in Georges eyes as that stinking shoe filled with camel
dung came sailing thru the air right for ole’ Georges nose. Never for even a
moment was our US president afraid. My respect for him that day grew a 100
fold.
Deflation is argued. Inflation
is argued. No one really knows for certain the direction of US dollar. Well,
I’ll make a humble and simple prediction for where we all will be by the end
of 2009. The dog house. Yep. Move over Spike we just might have to begin
sharing your residence with you before the end of 2009. George will provide
you with your shoes..
Jon Nadler, Senior Analyst,
Kitco Bullion Dealers Montreal, 12-17-2008 – "PEOPLE USED TO BUY
CERTIFICATES, NOW THEY WANT PHYSICAL GOLD." “In Switzerland, home to the
world's largest private banking industry, demand for gold bars and coins shot
up six-fold to 21 tonnes in the third quarter of 2008, more than in any other
European country.”
“Good reporting Jon Nadler.
It’s clear to me you have your ducks in a row. Thanks for the encouraging
press release. Why buy gold today? Well, it’s cute. Has that nice yellow
shiny polish on its face.
Howard Ruff , 12-8-2008 –
“GOLD AND SILVER WILL BOUNCE BACK WHEN INFLATION REASSERTS ITSELF.”“ It is
axiomatic that deflation is the spawning ground for inflation, as the
government doesn’t know how to fix deflation, depression or recession other
than to throw money at it.” “THE CREATION OF ALL THE MONEY FLOATING THROUGH
THE ECONOMY WILL EVENTUALLY MEET ALL THE CONDITIONS FOR INFLATION. You need
to be patient, which is hard.” kitco.com/ind/Ruff/ruff_nov082008.html
Narry a moment of fear in his
heart as he faced those shoes. Remember President Jimmy Carter who found
himself trapped in a row boat with a killer rabbit? Never saw a man grab for
a paddle for protection as fast as he did that day. But not our George.
Bravery beyond the call of duty. The shoe was a size 10.
“Anna Schwartz: 'The Fed Is
Inviting Inflation”2-9-2008” “…she is accusing the Federal Reserve of
"ignoring" the dangers of inflation. "I think the Fed is
inviting inflation by lowering rates to the extent it has," she said in
an interview with The New York Sun yesterday.” "The Fed will face a time
when they will have to raise rates unless they are going to permit inflation
to keep going higher, and when that happens, they may do more damage to the
economy than anything that is likely to occur now," Ms. Schwartz said.”
nysun.com/business/anna-schwartz-the-fed-is-inviting-inflation/70958/
Do you ever watch Dr. House,
“House, M.D,”? While just a TV show it does illustrate well a basic truth.
And that is a good diagnosis is often very difficult to come by. A + A = B or
does A + A = C? The point is that the establishment and understanding of the
longer term trend is very often mired by short term events.
Bill Buckler, The Privateer –
“It is our misfortune to live in a "Dark Age" when it comes to the
knowledge of the principles upon which economics in general and monetary
theory in particular are built.”
Right now some of the
brightest minds in the field of economics are arguing that deflation will be
our primary curse for the next decade. On the other side of the river are
financial gurus predicting that the component of inflation will be the
primary motivator and determining factor of our long term economy. It’s
always the trend that is most hard to see when we are standing still.
“Anna Schwartz on Fed and
Treasury Responses to the Financial Crisis” 10-18-2008 - “Bernanke Is
Fighting the Last War, by Brian M. Carney, Commentary, WSJ: ... [Anna]
Schwartz ... co-authored, with Milton Friedman, "A Monetary History of
the United States" (1963). It's the definitive account of how misguided
monetary policy turned the stock-market crash of 1929 into the Great
Depression. ... Ms. Schwartz thinks that our central bankers and our Treasury
Department are getting it wrong again.” “Today's crisis isn't a replay of the
problem in the 1930s, but our central bankers have responded by using the
tools they should have used then. They are fighting the last war. The result,
she argues, has been failure. "I don't see that they've achieved what
they should have been trying to achieve. So my verdict on this present Fed
leadership is that they have not really done their job."
typepad.com/t/trackback/423467/34659719
Certain events as time passes
are becoming more evident and inescapable. One fact that cannot be denied now
or ignored is the tremendous massive dollar creation via the US printing
presses. All these newly created trillions of dollars will filter back into
our economy and into consumer hands. And as we have learned all through
history is that currency debasement leads to inflation. And inflation
ultimately has the capacity to tear a civilization apart.
Gerald Celente – “A Great
2008-2009 Depression?” “The Feds cannot print enough money to save the day. We’re
going into the worst depression that any living person has ever seen. It’s
going to be worse than the Great Depression of 1929.” “We’re still firm
believers that gold and diamonds and other precious gems and metals are going
to be the things to invest in as the paper currencies collapse. There are no
fiscal or monetary tools that can turn this around.” “We’re looking at the
collapse of Empire America.”
talk.collegeconfidential.com/parent-cafe-election-politics/567726-gerald-celente-dragflation-great-2008-2009-depression.html”
Gerald Celente operates Trends
Research Institute. His record for trend setting has been right on the money.
Worth listening to.
“Investors warn liquidation of
assets and deflation is temporary calm before the storm” “Economic experts
have predicted that rampant inflation caused by government stimulus packages
will soon take hold of the economy and force precious commodity prices to all
time highs.” “Johann Santer, MD at Superfund Financial Hong Kong told CNBC
that he expects to see gold climb from its current position at $710 to a
whopping $1500-$2000 an ounce within the next three months.” “Santer
explained that deflation is not going to protect us from what he sees as
inevitable heavy inflation in the long run caused by the huge amounts of
money being pumped into the market in the name of saving the economy. Santer
predicted that we may even see double digit inflation. “ "At the moment
there is a major sell off in everything, people are really looking at cash
and treasury bills but in the long run, we will not escape from inflation so
we have a medium to long term target of $1500 [gold] within the next three
months." “Johann Santer's prediction mirrors that of numerous other fund
managers and top investors such as Jim Rogers, Robin Griffiths and Jurg
Kiener who are now predicting that global central banks' insistence on
printing their way out of economic turmoil is setting the stage for a
hyperinflationary holocaust, a knock-on effect of which will be gold's
acceleration towards $2,000, as demand for precious metals outstrips supply.”
infowars.net/articles/november2008/131108goldoil.htm
And we know for a fact right
now that the supply of physical gold is not meeting demand. Many placing gold
orders have to wait weeks for their orders to be filled. How long can the
price of anything be kept down and unaffected by the real supply and demand
processes?
“MAX KEISER PREDICTS THE
[GOLD] COMEX WILL CRASH AS THE HUGE AMOUNTS OF SHORTS WILL NOT BE ABLE TO
DELIVER PHYSICAL GOLD AND SILVER WHEN DELIVERY IS DEMANDED. THIS WILL LEAD TO
HUGE SPIKES IN THE PRICE OF THE PRECIOUS METALS WITH GOLD PERHAPS DOUBLING IN
ONE
DAY.”DISINTER.WORDPRESS.COM/2008/11/12/MAX-KEISER-ON-THE-COMING-COMEX-DEFAULT/
The question now being asked
by all is where to put present remaining assets. And history has proven time
and time and time again that physical assets become the vehicle of choice.
For people with any money now are not just considering potential gains of
their investments. They are concerned at asset preservation. If you have a
buck today can you safe guard that buck for the next ten years with any
degree of certainty.
Puru Saxena, Editor, Money
Matters, 11-14-2008 - “These ridiculous government bail-outs are hugely
inflationary and will further erode the purchasing power of paper
currencies.” “I urge you not to be fooled by the recent strength in the US
Dollar. This is nothing more than a short-covering rally and the American
currency is likely to witness an epic crash in the future. There is no way
you can have a strong currency when you are the greatest debtor nation in the
world (debt of US$54 trillion).”
financialsense.com/editorials/saxena/2008/1114.html
“And there are too many nation
states that have fallen via currency debasement that they are not necessary
to repeat here. We can recollect from memory those great powers that have
fallen due to mammoth inflation degrading in turn the national currency.
Larry W. Reaugh - “It’s a new
world out there but the emerging economies need our products [resources &
gold].”
Our incoming new
administration has stated that for the next two years excessive dollar
creation must be achieved to bring needed liquidity into the system. But it
never ends and the damage of inflation only escalates. You can continue to
fill a balloon with air with all the confidence in the world but that balloon
is eventually going to pop. And that is what we are beginning to witness with
greater intensity every day now. This crisis is not going to go patiently
away and the creation of new money backed only by the wind will only add fuel
to the economic flames growing now all around us.
Click here to order Gold
Letter
We’ve just completed an
article recommending 4 gold stocks whose price has been driven to the
basement. These are quality mining companies with the gold in the
ground. And their market cap is less than the cash in the bank? These
are the type of companies to buy that have the potential to make a lot of
money. Find out who these 4 stocks are?
On Friday the bailout plan for
the big 3 automakers began to fall apart.
All blame, of course, was
shifted to the unions for making too much money. There aren’t too many decent
paying middle class jobs left out there. There are very soon going to be a
lot less. A lot less. Maybe as a country we should start making a real
attempt to make manufacturing competitive in the United States. Probably too
late now any way.
The choice tomorrow is minimum
wage or higher than average wage. There will be very, very few middle class
jobs available to the majority. Actually, soon, there will not even be a
middle class. Just the haves and have nots. No in between.
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