Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Price Sizzles As the U.S. Economy Fizzles

Commodities / Gold and Silver 2010 Jun 29, 2010 - 11:29 AM GMT

By: Lorimer_Wilson


Best Financial Markets Analysis ArticleChris Blasi writes: The straight-faced dissemination of transparently amateurish "official analysis" these days loudly proclaiming that an economic rebound is underway is so blatantly short on truth that it reveals a disturbing level of desperation to raise confidence.

Furthermore, it clearly shows that the damage to the national economic infrastructure is so great that the practices deployed by the Federal Reserve and the Obama Administration to goose the economy to revival were futile at best and most likely counterproductive.

No healthy and sustainable growth seen on the horizon
Only the generation of millions of private sector jobs producing a legitimately saleable product or service is a reliable indicator to herald real recovery.  Unfortunately, the country foolishly embraced an economic model based on consumption over production. As such, there will be no healthy and sustainable growth until the populace somehow improves its personal cash flow, pays down previous consumption, builds some savings, and re-establishes a manageable line of credit.  That said, parsing through all the official gibberish about the "V" shaped recovery, however, I can find no irrefutable data to confirm that such confidence-building job generation is, in fact, developing.

We have a heavy price to pay on the long journey down
The economy may appear to have stabilized but this is a brief respite on a long journey down.  The trillions of stimulus, nationalization of GM, etc. should have halted the slide and jump-started the economy but, instead, such action has just provided a short intermission - with a heavy price to be paid down the road.  All that has really been accomplished is the official establishment of trillion plus dollar deficits going forward, with no end in sight.  This recurring annual budget shortfall is actually modest in comparison to the multi-trillions needed for unfunded entitlements, Obama-care, debt servicing, and the legions of upcoming bailouts for state governments and union pensions.

Potential remedies are being politicized (and weakened) to our detriment.
Of course, a crisis demands governmental action.  True to form, those that thirst for power seized on the perverse opportunity they helped create and are grinding out legislation that does nothing to honestly curtail future abuses. Instead, it burdens the innocent and productive sectors of society with oppressive, intrusive and damaging regulation. Unfortunately, there has not been one iota of legislation by government - or dollar spent - in response to this crisis that has not been politicized.  Consequently, the economic, regulatory and judicial distortions associated with heavy and far-reaching governmental intervention guarantees an ever diminishing standard of living.

One dim bulb and one bright spot for financial refuge
In a speech earlier this month Ben Bernanke treated us to a demonstration of his understanding of money as one beholden to the fiat monetary system.  A couple of his pearls of ‘wisdom’ were as follows:

“Other commodity prices have fallen recently quite severely, including oil prices and food prices… So gold is out there doing something different from the rest of the commodity group.”

"I don't fully understand the movements in the gold price, but I do think that there's a great deal of uncertainty and anxiety in financial markets right now."

No Ben, gold is NOT so much a consumable commodity as it is a monetary metal and, yes Ben, there IS a lot of anxiety in the financial markets.  Net, net, there is too much limitless paper and not enough finite gold, ergo the falling value of paper currency to gold.

That simple exercise in cause and effect could have saved the Pride of Princeton the embarrassment of appearing visibly perplexed about the basic tenets of money.  What do they teach in Ivy League economics?

However, contrary to Ben's befuddlement, there is clear and unambiguous precedent for coping with the demise of a paper-based, and thoroughly abused, monetary system.  While the options for financial refuge in such an imploding economic and monetary environment are few, historically, gold has served in this role and appears to be asserting itself once again.  This can be witnessed playing out across the globe in all major currencies.

Gold to ascend to much greater heights
Talk of a gold bubble is coming again from clueless conformists who made the same kind of assertions when gold broke $400 an ounce but it is just talk.  Except for its justifiable 4X price rise over the previous decade, there is no evidence of any typical bubble characteristics being attached to gold as yet. 

Unlike the behavior of "investors" in the and real estate manias, the masses are not running out to buy gold at any price.  Indeed, if you talk about investing in physical gold bullion at a cocktail party, you can still count on being subject to ridicule. For contrarians, such an environment is ideal.

The stage is slowly being set, aside from the occasional periodic normal price pullback, for gold to ascend to much greater heights.

Got gold!

Chris Blasi is President of Neptune Global Holdings LLC ( and a guest contributor to both (F.A.S.T.) and (Money, Monnee, Munknee!) and an economic analyst and financial writer. He is also a frequent contributor to this site and can be reached at"

© 2010 Copyright Lorimer Wilson- 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.

Lorimer Wilson Archive

© 2005-2019 - 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