Thursday, April 8, 2010

Gold Market Ponzimonium

I am not one for conspiracy theories (John Birch Society, the Illuminati, CFR, etc.), but there is evidence that the price of gold is being artificially suppressed by circles of powerful people who have a substantial stake in covering up just how weak the American dollar has become, i.e., a lot weaker than current trading of both the dollar and an ounce of gold would indicate.

The most public notice of the economy shattering possibility that the lid could come off the price of gold as the deficit spending boomerang comes back to clobber us was in The Huffington Post last week: "It's Ponzimonium in the Gold Market" by Nathan Lewis.

This video may be helpful in explaining the significance of the gold price relative to the purchasing power of the dollar and the strength of the economy, i.e., relative to YOU.

I have found this explanation of what exactly money is very informative. It explains things like fiat money and fractional banking, and other things people really need to understand to live in the adult world.

Also, don't let an 11,000 point Dow and rosy forecasts by sunshine peddlers in Washington delude you. Brace yourselves for the collapse of the commercial real estate market, a huge aftershock of foreclosures in the residential market, aggressive inflation, bond market barrenness, and then rising interest rates to entice people to buy our government bonds of dubious reliability so we can finance Obama's glory spending and his stimulus trillions for satisfying Democratic political constituencies, i.e., unions and left wing Utopian interest groups.

I'm not an economist, and it would not be unlike me to see a darker horizon than there actually is, but it also seems to me that it's wise to keep these plausible-to-virtually certain developments in mind.

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