Monday, March 21, 2011

Another week, another reason to buy Gold.

Regardless of the paradigm one is willing to look at our world, there is always one conclusion that comes to mind: The present is unstable and the future is scary. Back in 2008, the central bankers across the major world economies had promised us that their policies of quantitative easing and interest rate interventions were meant to prevent the planet from falling into a deflationary depression. Stabilizing the economies by boosting liquidities into the balance sheet of big banks and " corporations" were consequently hailed as the cure against the greatest economic crisis since the great depression. Hurray!!! So, one can wonder: " Are we really better off than 3 years ago or are things getting much worse?"
Since the the policies of bailouts have been enacted, mini-revolutions have been a quasi constant in our different Nations:

-The Greek and French riots
-The Arabs and North Africans food " revolutions"
-The Wisconsin Union battle
-The war in Libya and the troubles in Bahrain
-The unfortunate tsunami and quake in the financially torn Japanese economy
-Who is next.....?

It is hard to say and to know; but what is clear as we look at the facts: Things are much worse than they are even reported. The cost of living are skyrocketing across the planet and even in the USA. It is reported that the dollar has lost close to 20% of it purchasing power since 2008!

For the common man in the " street", Ben Bernanke's policies have been horrible and destructive. Not only are people unable to properly feed themselves as the price of food is going up, their job prospect are dwindling given the low rate of job creation. The governments are distorting their own economic metric, ignoring the price of foodstuffs and energy in their CPI and Inflation rate calculation in order to justify the effectiveness of their monetary interventions. But the reality is much dire, and most people are quite aware of this:

 The banking cartels are merely holding our economies hostage because of their " erroneous" bets on the flawed real estate investment models. They are like a virus that lives off its host and can only survive as long as the host is unable to repel it. The host is allowed to live, albeit painfully; but this merely done to maintain the relative comfort of the destructive virus.

Bankers on wall street are engaging in deals, ditching out dividends payments, buying up businesses and expending their hirings with near zero interest borrowed money!
As long as the system enables it, regardless of the unintended consequences on the overall society; we can expect the bankers to continue in their good old ways and enjoy " their economic recovery"! But, for the vast majority of people who have to deal with the reality of price spikes in food and other essential commodities, one solution and only one can help alleviate the effects of government destructive economic policies: Gold!

Buying gold and diverting into commodities and agricultural products is not only the smart thing to do in such an environment, it is the sane and healthy thing to do. Governments cannot print gold, nor can they produce foodstuffs from their higher towers of omnipotence. Commodities humble the most arrogant politicians for they are merely driven by the simple economic law of supply and demand! There is a drive in demand for all sorts of commodities right now, monetary interventionism aside!
Consequently, for the little guy in the streets, things " ain't as bad" if he decides to take his destiny in his own hand and detach himself away from the flawed monetary paradigm: Paper money! The governments can only plunder us up as long as we enable them to do it; the moment people decide to free themselves from the destructive policies of inflationary transfer of wealth, the moment we can really begin to talk about a sound return to stable price and real economic recovery. Given the fact that governments steal from us via quantitative easing and interest rate manipulation, people should be buying gold, every week, every month, even everyday....and they are doing just that!

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