"The whole reason why there is a credit crisis in the first place is because nobody trusts any institution that isn’t owned, backed, or financed by government debt. So where does that leave the investors?"
Great point. In reality any government is truly just a representation of the citizens of that country's wealth and ability to pay taxes. That is, after all, where a governments money comes from.
So really, people are buying US Citizens credibility to pay. Only problem there is US Citizens for the most part are in debt to the hilt, losing their jobs, and some are more concerned about putting the food on the table than buying Christmas gifts.
Gold on the other hand, requires no government to back up its value. It has had value for over 5000 years of human history. Not going to change tomorrow.
The End of the Gold Carry Trade [View article]
Great point. In reality any government is truly just a representation of the citizens of that country's wealth and ability to pay taxes. That is, after all, where a governments money comes from.
So really, people are buying US Citizens credibility to pay. Only problem there is US Citizens for the most part are in debt to the hilt, losing their jobs, and some are more concerned about putting the food on the table than buying Christmas gifts.
Gold on the other hand, requires no government to back up its value. It has had value for over 5000 years of human history. Not going to change tomorrow.
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Gold Speculators Rushing In? [View article]
Like a thermostat on your car, it serves the purpose of letting you know when your engine is overheating.
If you think the turmoil in the credit derivatives and credit crisis are over, perhaps its time for more research.
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Gold Price Conspiracy? [View article]
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Gold and the Dollar: Putting the Relative Cart Before the Relative Horse [View article]
Economy created by debt and inflation is not a strong economy, its smoke and mirrors.
Currency value is determined by how much it is, or is not debased, period.
Any idiot should be able to see this.
Can you buy more with $20 today than you can 100 years ago, or even 50 years ago?
Obviously not. Is GDP stronger today than it was then? Some would argue it is.
Why then, can you not buy more with todays dollars?
Sometimes I think economists and financial analysts are so busy trying to be intelligent, that they are some of the stupidest people on the planet.
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This Gold Correction Has Further To Run [View article]
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