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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.
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We’ve just completed an article
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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.
David Vaughn
Editor,
Gold Letter, Inc.
www.goldletterdv.com
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