I consider gold outside my regular investments. I don't trade bullion. I hold it as a unit of wealth. I know that one hundred years from now, bullion will possess purchasing power. The dollar? I don't know. I do know that the history of every fiat currency is a descent into worthlessness. No fiat money has ever survived. - Richard Russell on King World News LINKIt's coming, people. Both a big debt ceiling increase and a lot more QE. Anyone who thinks the Fed is serious about not printing any more money is either cluelessly naive or hopelessly ignorant. The apathy and nonchalance about what is happening in this country is beyond appalling. And now Charles Schumer, a supposed Democrat, wants to prevent anyone giving up their U.S. citizenship from re-entering the U.S. ever again. Dare I remind Herr Schumer that is exactly the kind of law the Nazis imposed on Schumer's relatives (my relatives too) in the 1930's? Those who forget the past are condemned to repeat it (Santayana), Chuck.
Here's a list of Schumer's largest campaign contributors: LINK. A mix of wealthy, sophisticated Wall Street, law and accounting firms. I would like Schumer to come out and publicly investigate the partners and upper management of each one of those firms for offshore tax shelters and tax-evasion schemes. There's no way in hell that Schumer can say his biggest donors are not also big tax evaders. No f--cking way. F-ck you Schumer.
Aah but I digress. The Fed is already beginning to show its hand on QE. I don't know if it will be overt money printing/Treasury buying or if they'll use some other kind of veiled money printing scheme, like the massive dollar/euro swap facility that's in place and likely to go parabolic in size.
Circling back the Boehner's statement after his meeting on budget and fiscal issues with King Barack, I have to believe that the number Obama put in front of Boehner for a higher debt ceiling is somewhere in the $18 to $20 trillion range. And Obama wants this done without commensurate budget cuts. Here's the LINK
Make no mistake about it, if this country was forced to use a cash in-cash out spending procedure, there would not be any need for a debt ceiling increase. Until that happens the amount of Government debt issued and outstanding will continue to go parabolic, in bubble fashion:
THIS, my friends is what the chart of an asset class that is in a bubble looks like. The relative price of gold is probably right around 1985 on this chart. Gold and silver will never be in bubble-mode until their long term charts look like this.
This is why big institutions, domestically and abroad, are beginning to move their capital into gold. We haven't even begun to see the massive wave of institutional capital pile into the gold and silver asset class. We have seen this already in Treasuries, and it's coming to an end. Thus, the very crux of the reason why the Fed will soon be printing a lot more money and why gold and silver are getting ready to launch into their next cyclical phase higher.
I rarely like to stick my neck out and put a price/timeframe projection on the metals because the market is so highly manipulated. But I will say that I am betting a lot of my own money that gold will be over $2000 and silver will be over $50 before most people have put up their Christmas trees - that is, if they can still afford one...