Last night while passing by CNBC Fast money program the subject of gold came up and the host proclaimed, in essence, that a gold play was "shorting America".
(Disclaimer) Say what you will about CNBC, I'm no fan either... but they took away my Bloomberg and its all I have left.
Shorting America I thought was an interesting, albeit wrong, interpretation. I understand the media's need to push paper products but to make it sound wholly un-American brought me to a boil. The long-term story for gold is a remonetisation play as investors lose faith in fiat currencies.
Not to mention gold has a much longer history of being money than any form of paper ever pushed by the manipulators. How long of history ...?
The word "money" in the Bible refers to gold and silver, the two forms of currency used in that part of the world during Biblical times. Looking at the King James Version, the book also specifically mentions gold 417 times and silver 320 times. Gold is referenced more often in the Bible than any other metal. It is mentioned already in the story of Adam and Eve in the second book of Genesis, Silver first appears in Genesis 13:2, telling of Abram's "riches of cattle, silver, and gold."
President Obama signed a housing bailout plan yesterday promising many billions for troubled homeowners. A new $800 billion TARP plan on Tuesday and this came on top of $300 billion committed to Citigroup, $700 billion for TARP 1, $300 billion for the FHA, $200 billion for TAF and some $300 billion for Fannie and Freddy. Just over the last six months, which excludes the initial Bush stimulus and several massive, unfunded Federal guarantees, nearly $5 trillion has been committed by the government to the financial industry alone.
This kind of money printing is not unique to America either.
The US Federal Reserve, having flooded the market with liquidity by more than doubling its balance sheet in less than six months, may be unable or unwilling to withdraw it in time for fear of precipitating a secondary relapse in economic activity. Other central bankers will also face intense pressures to "support" their domestic economy by weakening the currency, leading to competitive currency devaluations.
The race to the bottom in fiat currencies has begun and hard assets, particularly gold and silver, should be the primary beneficiaries.
So to say it is Shorting America is complete BS. People around the world are sensing that something is very wrong with banking. They are not shorting America, they are saying "we don't believe you are working in our interest and we have to look out for ourselves." This is why gold is setting new all time highs in every currency.
Gold jumped to multiple records on Tuesday, triggered by fears that East Europe's banking crisis could set off debt defaults and lead to contagion within the eurozone.
Many talking heads are yammering about deflation but what is coming is going to be very, very, bad (VVB). Gold is the barometer, it is forecasting inflation ... and lots of it. You can see it already at the grocery stores.
WASHINGTON (AP) -- Inflation at the wholesale level surged unexpectedly in January, reflecting sharply higher prices for gasoline and other energy products.
The Labor Department said Thursday that wholesale prices increased by 0.8 percent last month, the biggest gain since last July and well above the 0.2 percent increase that economists had expected.
The acceleration was led by a 3.7 percent surge in energy prices with gasoline prices jumping by 15 percent, the biggest gain in 14 months.
Even outside the volatile food and energy sectors, wholesale prices showed a bigger-than-expected increase, rising by 0.4 percent. Economists had expected a slight 0.1 percent rise in so-called core inflation.
And there is more on the way
Fed Bank of St. Louis President James Bullard this week said the U.S. faces a risk of "sustained deflation," and called on the central bank to avert a decline in prices by expanding the money supply.
Banksters have created this problem with their insatiable greed. In todays paper currency world there is nothing that keeps them tethered to reality. Absolutely nothing will stop them from printing all the paper currency they want. They will literally chop the forrest down this time. Why does every factory, every manufacturer of goods, every other business in the known universe have a cost overhead associated with doing business... except banking? What is going to save you?
Investors are seeking to protect their wealth with physical gold as the global economy worsens and central banks spend trillions of dollars to combat the worst financial crisis since the Great Depression. Assets in three of the industry’s largest exchange-traded funds are at all-time highs, while national mints are selling out of coins.
"There have been bar and coin shortages around the world," Wozniak said. Physical "gold has no default risk and there’s no counterparty risk. People need an insurance policy in place all the time."
Video
http://www.cnbc.com/...