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The Kensian End Point

|Includes: SPDR Gold Trust ETF (GLD)

Finally those so-called expert economists and pandering market commentators are starting to get it, and their paymasters, the Banking Colossus of Wall Street just can't get everyone to shut up. Like the man falling off a high building and shouting at each floor he descends to 'so far, so good' eventually even they must see the reality rushing up to meet them.


Anthony Crescenzi, is an investment manager at Pacific Investment Management Co. (PIMCO), one of the world’s smartest bond-fund managers. He wrote just recently, "Time, devaluations, and debt restructurings might be the only way out for many nations."

Like many smart managers, Crescenzi has no time for the blabberings of Wall Street Economists who have dedicated their lives to Keynsian dogma. But he is different from other managers in one respect: he is willing to discuss his views.(Well done Wes Goodman and Garfield Reynolds of Bloomberg News for having the guts to report Crescenzi’s opinions.)

So what happens now as the world wakes up to the fact that those trillions of fancy bits of paper called money have no collateral behind them? The answer is obvious to most – a flight to quality, and don’t include the US dollar as quality - public borrowings in the US passed $13 trillion for the first time this month, according to the Treasury Department and the debt will be larger than U.S. gross domestic product, now $14.2 trillion annually, by 2012. Quality will be what it always was these past 5000 years in terms of stored value, Precious Metals; mainly Gold and Silver. 

When you get this simple fact you will know what to think of commentators who suggest there is a Gold bubble about to burst. They are talking out the back of their head, the real Gold and Silver Bull Market has not yet commenced. 

So buy your Gold and Silver today, but remember to buy physical Gold and Silver and not the ETF Ponzi paper. I refer you Reg Howes’ recent report on GLD:

My thanks to Bloomberg News.






Disclosure: Long on physical gold and silver and mining stocks