sorgmot

Speaking of Gold...

Thank you for the very clear chart showing the upswing in US$ gold prices per once from 2000 to 2009. This is the period following the decline in US$ gold prices from 1980 to 2000 which was induced by US President Ronald Reagan starting in 1981.

He was guided and assisted in his endeavor to reduce $USA price inflation which had started in the 1960's by Milton Freidman and Paul Volker, respectively.

Those days ended in 2000 and their practices discarded by current USA politicians of all parties and stripes.

Consequently, the USA future in 2009 holds the post Reagan trend of money and debt explosion started under Clinton and continued under Bush II.

The next upswing in USA money supply will occupy in the years 2009 through 2014, As was true from 2000 to 2008, the US$ will fall against foreign currencies and gold. The USA economy will continue to stagnate and USA Government debt will increase greatly as in 4 or 5 times.

It will look like the one from 2002 through 2007. There will be a correction in 2015.

The 2002 upswing traversed from $300's to $900's per ounce and the one coming next could traverse from the $900's to $2700's

President Reagan is gone as is Milton Freidman and only Paul Volker remains. In their absence Democrats and Rupublicans alike have built faulty government structures on borrowing while destroying the US$ values of USA real estate, USA stocks,, USA bonds and USA private sector wages asset as the USA debt load explodes.

There is a good possibility the USA government will once again confiscate gold in the next 5 years.

Some things in the USA are so powerfully destructive to the well being of its citizens as to guarantee its collapse.

Good luck

Precious Metals’ Gleam Is Not Tarnished: When Will They Finally Bottom?

The question is, can gold's value per oz in US$ go up in a collapsing USA economy? The answer is yes. The same answer holds for silver and copper and all of the commodities.

Nancy P of Californie is the poster child of USA wealth destruction. She can impoverish the non government workers who create wealth while lavishing tax money at the feet of state workers who waste wealth and destroy the living standards standards of all but thereselves.

Gold is good in all countries while the US$ falls against other currencies.

Two Short-Term Scenarios for Gold

The great insight in the above exposition is the phrase "asset values fall while consumables prices rise".

Yes, in USA $'s, USA real estate, USA common stocks, and US $ denominated bonds all fall in USA $ prices.

Yes, in USA $'s, foreign currencies, all commodities, foreign stocks and bonds and real estate all rise in USA $ prices.

Get these ideas working for you.

The masterminds of the USA Democratic Party, now in power since the end of 2006, have accomplished an ongoing and accelerating fall in USA lining standards.

The masterminds of the USA Republican Party are chasing soul mates around the world.

Good luck.

What's Driving Gold and Gold Stocks: Part 1

Let us look at history for a few moments.

Gold is the strongest currency on planet Earth.

It is stronger than the Swiss Franc.

The Swiss Franc traded at $0,20 in in 1950 and at about $1.00 in 2008. That represents a 5 times increase against the US Dollar.
The Swiss Franc fell over the years in terms of real assets lick copper, steel, aluminum, and yes gold, Let us say that gold went up 10 times against the US dollar over 60 years to 2008.

Unfortunately, gold prices in US $'s were manipulated by the USA Federal Government. One could say that the US $ price of gold should have gone up 10 times since 1960 and 100 times since 1900. The end game is that the 2009 price of gold at 1000 per ounce in US$ is a reasonable number and not too high based on the inflation in US$ price inflation of other assets.

Set aside the discussion of the causes of the big waves and long pauses in the pattern of gold prices in US$ for another day.

Where does the US $ to gold price ratio go now and in the years 2009 to 2020.? Answer, it doubles. Why?

Nations in Europe and Asia will find it advantageous to run their currencies up against the US$ to get lower cost food products and more for products they sell to the US market.. The USA is an industrial wreck with IOU's beyond count. The USA put out worthless paper IOU's in the years 2002 to 2009.which were bought by really stupid governments and their banks all over the world including the USA. Once burned, long term frightened.

Good luck.


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Why IMF Gold Sales Won't Affect the Gold Market

Gold is gold.

You can not make it appear or disappear by a government order.

Governors and their economist employees endlessly demonstrate their stupidity and make those they govern suffer.

The problem is that governors and their economists and other employees bought trunk loads of worthless paper assets. Now, the money paid for those worthless assets has vanished. That makes the remaining money rise in value relative to hard assets and that in turn makes existing wages worth more. Gold is money and thus rises in value too as against most assets.

In the USA in 2009, the real value of the US $ is rising in term of things it can buy like goods and non government services. But, alas, real taxes are rising even faster. Yes, government borrowings are exploding and they are taxes too.

The proper solution is to cut government employment and all forms of government burdens including taxation, regulation too..
Only these changes can raise the living standard of the population.

Good luck.

Sascha Opel: Gold's Bull Market Is Just Beginning

Let history be your guide. ey ht Empires expand for 350 years and then

they contract for 350 years. The expansion phase is over in the USA.

As in all past empires, the politicians have ended the wealth of the general public. As a result, those bereft of ways to increase their real wealth tend to leave.to go elsewhere to build their personal wealth.

Would those leaving rather take a dead to some land in Dry Lands,
Arizona or gold with them?

Good luck.



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Bonds Slumping, Metals Looking Bullish

Gold is money. Gold is the oniy world wide money. Gold is the measure of value of all other things including all currencies.

Gold is infinitely divisible, and easily portable.

Fiat currencies are localized delusions.

They are run by some in the population to enrich themselves at the expense of others in the population. All fiat currencies are debased to zero value over time so that debtors can transfer great value to themselves from lenders.

Good luck.

Five Sophisticated Gold and Silver Investment Strategies for 2009

Berny made off with investor money.

The curtain has fallen on the stage play called "Where's Your Money?".

The answer is "Gone" !

The answer is buy gold. You know what it is and where it is.Your broker could never answer those questions for the hedge fund in which you lost almost all of your money. Investing is not like betting at the horse track unless you like loosing all your money.

Don't look to politicians for salvation. Berny has them in his pocket. They will not blow the whistle or retrieve your losses.

Could these be the reasons gold goes up when the economy dies from an overdose of incredibly over leveraged assets like homes, commercial real estate, stocks, and bonds?

Good luck.

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Hang on to Your Gold

The fix that works is to fix the price of gold at $ 2000.00 per oz in the USA asap.

Then let all buy and sell gold for US $ and keep that exchange rate fixed.

The USA must end the collapsing total of dollars available at once.

Marc Faber Says Time to Buy Gold Exploration Stocks

If you look at the GLD past history chart under Yahoo you will notice that gold changed hands at around $450 in 2006, at around $650 in 2007, and around $850 in 2008.

Gold miners are making money like never before in 2008. So, why did their stocks tank in half or worse between March 2008 and November 2008?

Why did all US$ stocks tank regardless of business or country tank in half or worse in that period?

Why did crude oil drop 2/3's in price in that period?

Who's driving this wagon?

The Republican oil boys lost the election in November, 2008 and the oil cartel revenues collapsed.

Oil prices collapsed in US$'s from March 2009 and the collapse is still on- going.. Middle eastern wealth measured in US$'s just fell by 2/3'rd's. Ain't that too bad?

The Walmart boys and girls from Arkansas won the election. There's a new sheriff in town.

Thanks to bad interest rate US$ bets make round the world, (ie. paid high US$ prices for asset and borrowed most of the money paid with high US$ interest rates that can not be now refinanced) there is a forced sale of US$ backed assets now underway.

When does falling US$ prices of assets end? How about 2040?

What happens to the US$ price of gold? Only when a lot of foreigh central banks insist on it in place of US$ in balance of payment settlements and sell existing US$ denominated paper for gold. Of course that ends export to the US while it enriches local citizens.

Good luck.


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Gold Approaches Record

The time has come the Walrus said to talk of many things.

Lewis Carroll mathmatician and author wrote in Alice in Wonderland.

The US and the world are now in wonderland.

Over night, real estate assets owners have lost all their investments and now owe more than the real estate assets are worth on the market. This is world wide.

In 2008, personal and commercial real estate entity values are collapsing and will keep right on collapsing to 2040.

Around the world, individual incomes are collapsing in 2008 as are corporate incomes and there is no rebound in sight,

Governments around the world are massive drags on economies in 2008 and the forecast is for these drags to worsen.

Socialism has doomed the vast majority of people to poverty. Socialism has been proven to be a devastating failure in terms if average individual well being.

The US dollar has become an ocean of IOU's that buy more and more as the days go by. If one owns some dollars, one waits for a bigger bargain tomorrow whether it be the purchase of a stock or bond or real estate or any other asset such as gold..

The only question for the next 20 years is would you rather hold a stack of US $ bills or a shack of gold coins.

As of October 2008, the US Government is exploding the number US $'s outstanding and it will continue to do so. In the long run, paper dollars in your hand will not be worth what the pile of gold coins you can now buy with those dollars will be worth.

Don't take any wooden nickles.

Good luck




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Bailout? Or Start Bailing?

Three must see movies:

Escape from Cleveland

Escape from New York

Escape from L A.

All momopolies and cartels always bring on their own collapses.

Cities started out as fortresses and service delivery spots on planet earth. They also hosted manufacturing activities. The work force was resident in the cities and walked to work up till 1910..

We are sitting in front of internet modules which are ending the values of cities, They are now collapsing and their cost of operation is now so high that they will keep in collapsing until they become what the above movies suggest.

Commutation collape goes with city collapse. Fuel price collapse goes with commutation collape.

Government revenue collapse and debt default explosion go with city collapse. City real estate becomes worthless as does real estate near cities.

No central or periferal government can stop the collapses but all will go broke in the attempt.

The US Government is now broke and the US $ is lost. Look at US Government revenues and expenses and outatanding debt. Can it survive as a financial entity? No.

What is the dollar worth if the USA government goes broke? .

Good Luck.




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John Embry: 'When the Gold's All Gone, the Market Will Go Nuts'

In paper money economies, price collapses spreads very rapidly to all kinds of assets. When individuals owe more on an asset than it can be sold for they rush to sell other assets to raise money to make the next mortgage or food or car or dental bill payment.

The huge number of indebted asset owners assets for sale swamps the market for each item and forces all prices lower on all asset classes in paper currency terms.

That is where we are now. As all asset prices fall in terms of the paper currency more and more assets must be sold to make set amounts of paper debt payments. Welcome to the 1930's.

The beauty of paper currency is that it permits infinite expansion in asset prices followed by infinite collapse in asset prices and of course a complete collapse in the economy.

Today's real financiers know this. Today's economist are all on government payrolls and know nothing but to praise the governments every action..

Equity Markets, Forex and Precious Metals

If a national currency is not tied to a commodity such as gold or silver or etc., it becomes worthless. This is true in all cases in the world,s history.

In the USA case, the dollar has become worthless as the 20th century has progressed. US national, state, and local governments have knighted themselves with unlimited US dollar spending authority.

Other countries around the world have adopted the model of dropping all ties of their currencies to any real assets.

Now, no one knows what anything is worth in any currency. Politicians and their well connected friends use local currencies and cartels and monopolies to amass huge relative personal fortunes while making unproductive invests. This could not be done with a real asset currency like gold. No one knows what anything is worth in any currency at any time with a fiat currency.

The only very loose score card is gold. Of course, governments try to manipulate the gold supply that is free and in the market place to mess up that score cared.

Whats hot' is hot. Whats not's not. Good luck,.

Is Gold’s Quotient Rising?

Gold and gold stocks are doing what they usually do at this stage in the business cycle. Gold goes up in US $ as the USA recession progresses. Based on past data we look for the USA recession to drag on through 2008 and 2009. That means upward price movement in gold/$ to the end of 2009.

Stocks of gold mining companies like to go up from Oct of one year to April of the next on and then drift down to the next October. Stock price increases tend to rise in larger percentages than do the gold metal prices.