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What’s happened to gold?
Is it still out there? You better believe it is still out there and will
continue to be “out there” and for a very long, long, time. What are the
banking gurus predicting for gold?
“Merrill Lynch says that gold
can lift another 50 per cent; Merrill Lunch suggests it can go from about
$US975 today to $US1500 in 12 to 15 months.”-
theage.com.au/world/golds-promise-draws-dreamers-schemers-and-sceptics-20090221-8e84.html
Well, looks that ol’ Dow Jones
average is on its way down to 6,000. And how much lower from there? We
truly live in interesting times. Consumer bankruptcy has jumped almost 30% in
February from a year ago. The Dow Jones is volatile and wanting to head
lower. Fed Reserve Chairman Ben Bernanke has warned Congress that the economy
could be in the dumps for years possibly because the financial system
continues to deteriorate.
"The fortunes of the
American economy have grown so alarming and the pace of the decline so swift
that economists are now straining to describe where events are headed,
dusting off a word that has not been indulged since the 1940s:
depression."
nytimes.com/2009/02/28/business/economy/28recession.html?_r=1
Home sales are falling to new
lows. Car sales are continuing to go down hill driving many auto
manufacturers close to bankruptcy. So many people are out of work. Tons of
homes are worth less than the existing mortgage. Almost 700,000 jobs lost in
February alone. Savers are trying to learn to save money outside their 401K
plan. Have to with 50% losses on most 401K portfolios.
"Gold is not a safe haven
against recession," said Hutchinson. "It’s a safe haven against
inflation." “But it also reveals another wild card inflationary
indicator that Hutchinson believes carry gold prices to $1,500 an ounce by
the end of 2009” “…Hutchinson believes carry gold prices to $1,500 an ounce
by the end of 2009.” moneymorning.com/2009/02/16/2009-gold-outlook/”
US senators are proposing an
investigation to determine why the economy is tanking. I feel comfortable
already.
“Private equity company
Blackstone Group LP (BX.N) CEO Stephen Schwarzman said on Tuesday that up to
45 percent of the world's wealth has been destroyed by the global credit
crisis.” "Between 40 and 45 percent of the world's wealth has been
destroyed in little less than a year and a half…” "This is absolutely
unprecedented in our Lifetime."
agonist.org/20090311/45_percent_of_worlds_wealth_destroyed_blackstone_ce
Maybe Congress just needs to
talk to the average American on the street. Are we in a depression or a
recession? How is a depression being defined now? A depression is
thought to be a recession that does not self correct on its own created by an
enormous trade deficit and banks going bankrupt. Sounds like we are now in a
depression to me. AIG is continuing to plead for more billions.
“Renowned investor George
Soros said on Friday the world financial system has effectively
disintegrated, adding that there is yet no prospect of a near-term resolution
to the crisis.” “Soros said the turbulence is actually more severe than
during the Great Depression, comparing the current situation to the demise of
the Soviet Union.” "We witnessed the collapse of the financial
system," Soros said at a Columbia University dinner. "It was placed
on life support, and it's still on life support. There's no sign that we are
anywhere near a bottom." "I don't remember any time, maybe even in
the Great Depression, when things went down quite so fast…” boston.com/news/nation/articles/2009/02/21/soros_sees_no_bottom_for_
There’s a global swing
developing toward gold and gold exploration stocks. Gold and silver mining
stocks are priced at 400 dollar gold level. I have not written a lot these
past six months. The occurrence of last fall left me in a state of shock I am
still trying to absorb. Since 1997 I had come to understand that these days
of financial collapse were coming, but still, when they financially come they
still take you by shock. It’s like knowing that death awaits us at some
time down the road and around the corner. Yet, the day that death comes
we are still never really prepared.
Jim Rogers – “If gold goes
down for whatever reason then I will buy more.”
jimrogers-investments. blogspot.com/2009/03/gold-and-silver-outlook.html
And I can state with certainty
that everyone around this vast globe has been reeling in the after shocks of
this financial earthquake. Who can ever really be prepared for the death of a
loved one? Even when we watch that patient die a slow and horrible
death in hospice. And so has gone our economy. A slow and painful death to
observe. Before we were moving along in first gear so to speak for years on
end. But then the fall of 2008 came and our world shifted into over drive.
And that is where we are today.
We are in over drive and with
no working effective brakes to slow us down. I believe that regardless
of which political party may have come into office in January, 2009, it would
have been too late for any real meaningful policy to come in to play that
could have stopped this ongoing carnage. And rest assured that this ongoing
carnage has a very long way to go. Even today the Chinese are voicing and
making themselves heard world wide that they are becoming more and more
afraid to continue financing the great US debt machine.
I guess you know by now that
Paul Harvey died just a short while ago? I guess that confirms all by
itself that we are now in a new terrible era. Totally in an uncharted area
without Paul Harvey to guide us.
“End of An Era: Radio Pioneer
Paul Harvey Dies at Age 90” “Paul Harvey, once known as the most listened to
man in radio, has died at the age of 90 at a hospital near his winter home in
Phoenix”. “From his humble beginnings as a teenager helping out
cleaning up at a local radio station, Harvey went on to have his broadcasts
carried by 1,350 commercial radio stations, as well as 400 stations of the
Armed Forces Radio Service.”
mashget.com/top-stories/2009/02/28/end-of-an-era-radio-pioneer-paul-harvey-dies-at-age-90/
I grew up on “Paul
Harvey.” I used to race to the radio years ago to hear Mr. Harvey state
“Good morning America! It’s Friday!” Well, now no more Fridays
for Paul. Just eternal gold streets and a golden microphone. Rush
Limbaugh eat your heart out! Where do we cry from here? And now I hear
75 year old James Dobson is stepping down from his place in the sun also. As
I said before, an entire generation is dying and a new one coming into bloom.
Of course that new generational era bloom will be in the prickly shape of a
Texas cactus. The prince of darkness has definitely arrived in town. Not just
in your town and mine, but the entire globe.
Sure, a lot of that which has
been lost may have been paper. But so what? Its paper that we use as
currency and pretend that it is real wealth. Who is going to ride in now and
save us? It sure will not be either of our existing political parties.
They created and fed this crisis. Yes, the world we once knew is
changing. Can’t go back there. New rules and new problems. A new
age. The new age of the 21st century. And the sooner we grasp this
important fact the greater chance we will have to survive. And I am talking
about surviving financially, emotionally, and psychologically. Never do any
of us accept change well. We generally long for the nostalgia of
yesterday. Yet, it is so important often to let the past go and move forward
and accept the change that comes with it.
And don’t forget the Chinese
are getting closer and closer to the day when they cease to continue to
finance the US debt. That day should be interesting. And as we have said
before all of these events will trigger an inflation rate we have not
witnessed for a long time.
“The Chinese are getting
nervous about buying U.S. Treasurys.” “…Chinese Premier Wen Jiabao, who
expressed concern that the more than $700 billion in Treasury debt his
country holds is at risk of seeing its value fall due to rising budget
deficits here.” "We have lent a massive amount of capital to the United
States, and of course we are concerned about the security of our
assets," said Wen…” "To speak truthfully, I do indeed have
some worries."
money.cnn.com/2009/03/16/news/economy/fed_meeting/index.htm
There really is nothing
shocking happening today because many recognized these existing trends even
20 years ago. The old blacksmith in 1909 had to recognize that the new
vehicle operating on the streets that required no horse was going to change
his business drastically. The innovative blacksmith would have opened a car
dealership to survive and even to prosper with the changes the new automobile
with the internal combustion engine was bringing. There were only four
registered automobiles in the United States in 1895. Horses were first
offered as trade ins for the new automobile. Ransom E. Olds was the first
mass producer of gasoline powered automobiles.
“The economic crisis and
complete lack of competence from our leaders has resulted in a current
financial climate that will result in the most fantastic run the price of
gold has ever experienced.” oxburyresearch.com/tag/gold-demand-2009/
The following bit of trivia is
interesting. In the beginning the automobile suffered from a shortage of the
availability of petroleum. The creator of the first Cadillac became
interested enough to procure a supply of gasoline for his cars that he become
a self-taught geologist and eventually discovered major oil deposits in
Kansas. I suppose what I am getting at here is the necessity of looking at
our world today and determining what new innovative technologies are going to
grow as the years progress. I continue to be amazed that the Internet really
came into its own in 1995. What, a mere 14 years ago? Change is
happening all around us and we have to accept it and grow with it.
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