cjwirth

Bob Moriarty: Gold is Safe Haven for Looming Crash

Gold is not a safe haven. As the world goes into recession, the demand for gold in jewelry and the manufacture of electronics will decline. As the recession worsens, some gold investors (especially retirees) will sell their gold to get needed cash. Gold has little intrinsic value. The bubble of gold investment will burst as soon as the price drops and people realize that the price of gold can fluctuate greatly. Declining confidence will kill the price of gold. Here is how the recession will happen:

According to energy investment banker Matthew Simmons, global oil production is now declining, from 74 million barrels per day to 60 million barrels per day by 2015. During the same time demand will increase 14%.

This is equivalent to a 33% drop in 7 years. No one can reverse this trend, nor can we conserve our way out of this catastrophe. Because the demand for oil is so high, it will always be higher than production; thus the depletion rate will continue until all recoverable oil is extracted.

Alternatives will not even begin to fill the gap. And most alternatives yield electric power, but we need liquid fuels for tractors/combines, 18 wheel trucks, trains, ships, and mining equipment.

We are facing the collapse of the highways that depend on diesel trucks for maintenance of bridges, cleaning culverts to avoid road washouts, snow plowing, roadbed and surface repair. When the highways fail, so will the power grid, as highways carry the parts, transformers, steel for pylons, and high tension cables, all from far away. With the highways out, there will be no food coming in from "outside," and without the power grid virtually nothing works, including home heating, pumping of gasoline and diesel, airports, communications, and automated systems.

This is documented in a free 48 page report that can be downloaded, website posted, distributed, and emailed: www.peakoilassociates....

I used to live in NH, but moved to a sustainable place. Anyone interested in relocating to a nice, pretty, sustainable area with a good climate and good soil? clifford dot wirth at yahoo dot com or give me a phone call which operates here as my old USA-NH number 603-668-4207.