Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold, Silver & HUI Stocks Big Pictures - 28th Sep 20
It’s Time to Dump Argentina’s Peso - 28th Sep 20
Gold Stocks Seasonal Plunge - 28th Sep 20
Why Did Precious Metals Get Clobbered Last Week? - 28th Sep 20
Is The Stock Market Dow Transportation Index Setting up a Topping Pattern? - 28th Sep 20
Gold Price Setting Up Just Like Before COVID-19 Breakdown – Get Ready! - 27th Sep 20
UK Coronavirus 2nd Wave SuperMarkets Panic Buying 2.0 Toilet Paper , Hand Sanitisers, Wipes... - 27th Sep 20
Gold, Dollar and Rates: A Correlated Story - 27th Sep 20
WARNING RTX 3080 AIB FLAWED Card's, Cheap Capacitor Arrays Prone to Failing Under Load! - 27th Sep 20
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelerting Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gold Versus Defective Economists and Delusional Leaders on Drugs

Commodities / Gold and Silver 2011 Jan 13, 2011 - 11:51 AM GMT

By: Midas_Letter

Commodities

Best Financial Markets Analysis ArticleIt has always been my opinion that the so-called science of economics in its current form is victim to the problem of not being able to see the forest because of the trees. The fact that 60 percent of 242 members of the National Association for Business Economics think that the U.S. Federal Reserve is doing the world a favour by maintaining non-existent interest rates is hard evidence in support thereof. If you give something away (money) at no cost, then its value is zero. Something is only worth what someone else is willing to pay for it. Why oh why do our illustrious leaders fail to grasp such elementary logic?


The global economy has just OD’ed on credit, and the Fed’s response is to make the offending intoxicant free for all the junkies. And, to make matters worse, the Fed sees itself as its new best customer. Even street-level drug dealers know better than to get high on their own supply. Metaphors aside, and as increasing numbers of unemployed, under-employed, un-housed and unpaid Americans know, the United States is in the terminal stages of a broad systemic failure brought on by the excesses of too much money in the system. And sadly, the patient is still in denial.

Economics, this now more dismal than ever of sciences, fails to reconcile the fact that the amount of capital available to the global economy and its movers and shakers must needs by directly proportional to real demand for actual products. Opportunity is not created by the mere manifestation of unlimited quantities of counterfeit zero-cost capital. The excessive amounts of ersatz wealth created by the dot com era, the derivatives matrix, and incomprehensibly complex mortgage securities has resulted in the present problem of Too Much Stuff. There are too many houses, too many cars, too many baubles and gadgets and plastic doodads manufactured in China sitting on shelves and in lots around the world un-purchased and un-wanted because the demand for these things is gone. Everybody’s got one or two or three, and the population will not grow fast enough to generate sufficient demand to consume the output of our horribly efficient industrial infrastructure.

All that is accomplished by making capital freely available to the world who doesn’t want it or need is to confirm for even the unborn and newly dead that the capital proffered is worth exactly its cost: zippo bippo.

The distance between the present reality and current delusion under which these doped out leaders and their woefully befuddled economists operate is vast in terms of required economic policy revision. Credit needs to cost, and currency levels need to be reduced. Gambling on Wall Street with taxpayer’s equity needs to be outlawed. The incestuous inter-relationships among government and banking is shockingly blatant. And criminal. Though not in our current legal system, which is presently aiding and abetting as opposed to overseeing and regulating.

As global citizens seeking to protect and enhance our modest wealth, our common objective is to identify the schemes and scams perpetrated by this government-banking organized crime group, and avoid them, since no law enforcement is available in the absence of suitable law.

Make no mistake. We live in an age of collusion where the government of the United States and its banking underwriters are the enemies of the global citizenry. They prey upon us to satisfy their insatiable lust for riches. Using their currency and credit, you are corralled into a perpetual cycle of labour and debt in which you will die and leave your children encumbered with the very same fate. (I’m speaking primarily to Americans here.)

For Canadians, there will be much less pain, but pain nonetheless. Our ratio of resources to population assures a future where if even the worst case scenario arrives, there are plenty of caribou and salmon and lots of land to go homesteading on. For many, the increasing destabilization of global markets and financial systems will go unnoticed. Our conservative financial disposition protects us from foolish short term policy manipulation. Tacitly, we understand the larcenous nature of those who gravitate towards business and have no illusions about the market being capable of correcting itself. Healthy doses of strong regulation prevent the inundation of court rooms with large scale frauds.

The news is full of warnings about Canadian housing bubbles in 30-odd markets across the country. Since we sell large portions of everything we make to the United States, who’s buying interest is evaporating steadily, we may soon be in the company of misery with our U.S. brethren. My own brother is woefully trying to keep his once-flourishing turn-of-the-century home restoration and reselling business alive. Its not looking too good in Portland – or anywhere else on main street America these days.

In the U.K., poor U.S. style banking tactics have rendered the country impotent economically without the infinite drop-breaking benefit of the currency being the global medium of trade. Private equity funds liquidating, house prices falling, unemployment rising, all mirror images of what’s happening in the United States without the bloated deficits of regional governments. Will the deflationary effects of inflation extinguish what flicker of recovery exists in the dark economic night upon the edge of which perches the British empire?

And Germany, now the juggernaut of growth and foundation of financial strength upon which the future of the whole Eurozone rests. Can it continue to carry the weight and drive the growth of this increasingly fragile trading block?

For 2011, there is no sign of slowing for the default mechanism of quantitative easing. The only question is, at what point will this junkie overdose terminally?

James West is the publisher of the highly influential and widely respected Midas Letter at midasletter.com. MidasLetter specializes in identifying emerging companies in gold and silver exploration at the beginning of their share price appreication curves, and regularly delivers 10 baggers (stocks that increase in value by at least a factor of 10) to his premium subscribers. Subscribe at http://www.midasletter.com/subscribe.php.

© 2011 Copyright Midas Letter - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Midas Letter Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules