Gold Rerated as a Zero-Risk Asset
By Christian DeHaemer
Thursday, October 11th, 2012
Thursday, October 11th, 2012
Sour economic news has caused the price of gold to spike.
There are civil wars in the Middle East. U.S. diplomats have been murdered in Libya. And the second and third largest economies on earth — Japan and China — are slap-fighting over a pile of rocks in the middle of the Pacific, causing Japanese car sales in China to fall by half.
The list of concerns seem endless...
Greece, Italy, Spain, Portugal, and now even France are on the brink of economic and political Ragnarök.
The United States is mired in debt and malaise of comparable proportions — and yet it has produced an election where the leading candidates exchange catty remarks over a giant yellow Muppet named Big Bird.
Fascism by Another Name
These are historic times with serious global problems, and in the face of all this we humans remain leaderless, divisive, and lost.
In response to years of high-risk gambling that failed, the large multinational banks and their cronies at the various central banks have been crushing CRT+P on their secure black laptops, adding zeros and printing currencies with abandon.
The International Monetary Fund recently downgraded global growth, saying: “Clearly, downside risks continue to loom large, importantly reflecting risks of delayed or insufficient policy action.”
This is banker-speak for “print more money.” It is self-serving cronyism at its best.
If you make more of something, it becomes less valuable — end of story.
History is replete with the horrific ramifications of currency debasement. (Remember, the hyper-inflation of the Wiemar Republic puked out Hitler.)
Fascism is the marriage of corporations and government — in other words, cronyism kicked up a notch.
I am reminded of the great Yeats line: “And what rough beast, its hour come round at last, / Slouches towards Bethlehem to be born?”
The Greek Nazi party recently gained 21 seats in Parliament and won 7% of the vote.
But it is not the end of the world yet, my friends. We have some fight left in us...
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