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Copper Catcher
Administrator
USA
2092 Posts |
 Posted - 07/18/2010 : 19:53:23
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Richard Russell: Everything you need to know about gold in three sentences
From Richard Russell in Dow Theory Letters:
...As I've said a thousand times, Fed Chief Bernanke will absolutely not accept deflation...
Shrewd gold-accumulators are well aware of [this]. As the deflationary and deleveraging forces press on the US economy, the Bernanke Fed is ready to devalue the US dollar in its ("whatever it takes") battle to hold back deflation.
Let's boil the whole thing down to three sentences.
(1)The Fed will not tolerate the growing forces of deflation.
(2) To combat the deflationary forces, the Fed will devalue the dollar by printing trillions more of Federal fiat money.
(3) Once it is realized that the Fed is on the path to devalue the dollar, there will be a panic to buy and own gold.
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fb101
Administrator
USA
2856 Posts |
Posted - 07/18/2010 : 21:24:23
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| This is where my head is at. |
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 07/19/2010 : 16:45:21
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quote:
Originally posted by beauanderos
I agree... I just hope my faith in silver isn't misplaced. I'm about 85:15 silver to gold. 
I would start shifting to Au based on what FOFOA has written.
shorter answer: the PTB have demonstrated that they can keep a lid on PM prices, both gold and silver. realistically the only thing that is going to loosen that power is the failure of paper money or central bank action. when CB's act, they prefer gold to silver by a wide margin. so the big move will be in gold first. silver will have a move, but i'm increasingly skeptical that it will be as big. |
Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
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Country
1000+ Penny Miser Member
USA
3121 Posts |
Posted - 07/19/2010 : 17:35:50
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The forces of DEFLATION will be strong. Probably, the FED will be behind the curve as they have been in the past. In addition, QE2 is not politically fesible with the philosophical gridlock between Republican and Democratic congresspersons. The political will of the current administration has shown itself to be mindfull of the agenda directed upon them by business profits and re-election concerns. I think they will all come to realize that we will have a global worldwide great depression upon us far too late to do anything about it. The political will is just not there to resolve the economic problems head on.
Once we are in the grips of DEFLATION, prices of GOLD, SILVER, and other commodities will be much cheaper than they are currently. If sovereign governments continue to solve these problems via committees or promises without any real constructive action, plan on revisiting 1932 again as everyone with CASH hoards CASH. |
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Edited by - Country on 07/19/2010 18:30:33 |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 07/19/2010 : 20:43:54
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It all comes back to the deflation vs. inflation debate. I posted this in another thread but got no response from it.
Who really knows what is going to come? I'm hedging my bets in both directions.
BTW, base metal coinage may be a good way to do that. |
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Think positive. |
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argent_pur
Penny Sorter Member
78 Posts |
Posted - 07/19/2010 : 21:04:20
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In addition to Helicopter Ben not accepting deflation, the Prez also stated several months back that the U.S. will double its exports within 5 years (after he's out of office, of course!) Point is that, without a huge gain in technological advance to make our exports cheaper to produce, TPTB will have really only one other option...depreciate our currency to make our exports more attractive to foreign buyers who will suddenly find that their currencies buy a heckuva lot more U.S. goods than they did before. Bad news for American consumers
That's assuming Obama keeps that promise... |
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AGCoinHunter
Penny Hoarding Member
USA
685 Posts |
Posted - 07/20/2010 : 08:54:01
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quote:
That's assuming Obama keeps that promise...
lol, now thats funny. |
"All tyranny needs to gain a foothold is for people of good conscience to remain silent."
-Thomas Jefferson
"There is no difference between communism and socialism, except in the means of achieving the same ultimate end: communism proposes to enslave men by force, socialism—by vote. It is merely the difference between murder and suicide." - Ayn Rand
________________________________________________
Lenin: Class-based International Socialism
Hitler: Race-based National Socialism
Obama: Class- and Race-based Post-National Socialism
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Everything you need to know about gold ....
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