To print or not to print? Odds are that Fed Chairman Bernanke has been contemplating this question while drafting his upcoming Jackson Hole speech. The one good thing about policy makers worldwide is that they may be fairly predictable.
Libor, Bernie Madoff, MF Global, Peregrine Financial, zero-percent interest rates, the Social Security and Medicare entitlement funds, quote stuffing and high frequency trading (HFT), and debt-based money. What do all of these things have in common?
The two largest gold buyers in the world that largely drive the Love Trade, China and India, underwhelmed the metals market with their subdued demand for the yellow metal during the second quarter of this year.
It’s almost as if currencies are designed to confuse you. In fact, sometimes they even lie to you. Take the pound sterling for example. This quirk and much more is cleared up when recounting the evolution of currency systems.
The purest form of a debt free asset is gold. Gold is true money, the only form of money that isn’t someone else’s liability. While central banks might be able to lower the gold price by dumping their own reserves, central banks cannot print more gold.
The US dollar is fundamentally weaker than it appears to be based on the USDX. Gold, silver and related mining shares will rally heading into late 2012 and are likely to break out dramatically as current trends develop.
Despite the assertions of some, today’s gold is not the tulip of 400 years ago. While there are many who believe in gold, not everyone is believing and buying. What we’re seeing in the market is not a bubble-blowing frenzy fueled by crowd madness.
The fact is that all the gold is gone from backing all the currencies - and even from the Olympic medals - and that people think gold colored plastic credit cards are actually something with which to impress.
The cheapest and most profitable oil North America has ever seen is now “flooding” into the market. Producers are using “waterfloods”pushing water into underground formations to flush a large amount of oil out to nearby producing wells.