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Gold, Up or Down?

May 31, 2010 Global Economy, Predictions No Comments

Gold, up or down?  That is the question.  There are many variables, but when they are all laid out, it looks like the weight is on the upside.  Time is the ultimate arbiter, but if the question is gold up, or down, the odds favor gold up!

Some Initial Thoughts To Ponder

Everything is not as it seems.  The only way to keep the Ponzi-Scheme going is to continue adding more of other people’s money.  That is the the message that is coming out of Europe via the Greek implosion.  The Greek socialist state cannot continue without more of other people’s money.  Germany is not happy about being that other person.  This fundamental currency crisis threatens the very existence of the European Union.  That is all well and good, but it can’t happen here, can it?

Let’s see.  The National Debt in the U.S. is nearing $13 Trillion dollars, so much for hope and change!  (It is interesting to me that when the last president ran a $450 billion deficit it was the end of the world according to the fifth column, oops, excuse me, the 5th estate.  When “The Anointed One” piles up 1.2 trillion in the first year, it’s not even a story!)

Back to the the National Debt.  In reality, it is actually$19 Trillion when you add in the over $6 Trillion that is owed by Fannie and Freddie.   They are not included in the debt because they are now owned by the government.  That’s called “nationalization” for those of you in Hollywood.  Nationalization is what third world countries and dictators do, but then in Hollywood you probably all went to “public” schools where history has been “revised”.

The unfunded liabilities of Social Sec., Medicare, and Medicaid are not even included in the deficit, because even some of those who live in Hollywood would go “what’s going on here?”   DUH!!!!!!

There are only three ways to handle this situation if you are a  “statist”.

Higher taxes are not the answer. The progressives are trying to jam every tax increase that they can down our throats before the November election.  Unfortunately that will only increase and prolong the recession/depression that we are currently struggling through.

Government spending cuts to reign in the budget?

Not going to happen under this “regime”, to borrow a term from Rush Limbaugh. Everything that the  “Community Organizer In Chief” has done since he has been in office has been designed to grow government at the expense of the private sector.  To look for spending cuts from this regime is like asking a Bengal Tiger to become a vegetarian.  Not going to happen.

How Does A Government Pay  Debts That It Can’t Pay?  It Devalues its Currency!

It is the only answer that they have left  and it will definitely come soon.  The run to the dollar that we are currently experiencing is a knee-jerk reaction to the the European currency crisis. At some point, next week, or next year, makes no difference,  the dollar is going to go down just like the Euro and gold will be the beneficiary.  The government knows this and you should prepare yourself for what is coming.  Fore warned is fore armed!

Gold,  Up  or  Down?

Let’s weigh the potential for an up or down move in gold.

If we are to believe the propaganda coming out of both the European and U.S. governments, then the follow would be considered reliable, or “true” from the spin that they put on the “financial crisis”.

  1. Government deficits have been addressed and contained through the wisdom of their respective “leaders”.
  2. The global recovery is progressing, even though it is slower than originally thought.
  3. China is going to continue to buy  Eurozone Bonds and U.S. Bonds, so there will be no turmoil in the currency markets.
  4. Gold is over priced because jewelry demand is not sufficient to hold prices at present  levels.
  5. The world wide economic recovery will lessen the demand for gold.
  6. Interest rates will  rise soon and  make currencies more attractive to investors than gold.

This is what the “cradle to grave” crowd wants investors to think.  The reality of the situation is this.

1.  Government deficits have not been addressed. They are still expanding
uncontrollably through the miracle of “quantitative easing”.

2. If anything, the global recovery is teetering on the brink of a massive secondary collapse.
Global governments are crushing and chance of recovery.

3. China will always confirm their intention to keep buy European and U.S. bonds while
they quietly sell them into strength.  They are not stupid and would never announce
their intention to exit and destroy the value of their holdings!  The Chinese have patience
and will exit on highs.

4. Jewelry demand is up and bullion and coin sales are far exceeding the ability of the
producers to keep up with the demand.

5. What recovery?  Get real, we are heading toward a double dip that will rock your world.

6. The Fed cannot raise interest anytime soon without crushing what little “green shoots”
there are in this economy.  If the Fed raises interest rates, “Obamunisn” goes down the
drain.  Not going to happen.

Gold is going up and it is going up soon.  Be prepared because the moves are going to be gut wrenching!

Changing Gears Here!

The Community Organizer In Chief should be Impeached for violating his oath of office by agreeing with Mexican President Felipe Calderon.

This comes to us from Rasmussen Reports.

Mexico City, Washington Gang up on Phoenix

A Commentary by Debra J. Saunders

Sunday, May 23, 2010
Mexican President Felipe Calderon got the tough new Arizona immigration law wrong when he told Congress on Thursday, “It is a law that not only ignores a reality — but also introduces a terrible idea of racial profiling as the basis for law enforcement.”

To the contrary, Arizona Senate Bill 1070, which makes it a state crime to be in the United States illegally, expressly prohibits police actions based on “race, color or national origin.”

Some senators and representatives frequently applauded during Calderon’s speech. What a spectacle. Senators and House members were cheering a foreign leader for bashing an Arizona law intended to bolster the federal immigration laws passed by — who else? — senators and House members.

Washington keeps pushing the envelope on craven.  For his part, President Obama is a virtuoso at talking out of both sides of his mouth on immigration. He calls the immigration system broken, then proposes to fix the system by paving a path to citizenship for those who broke the law. He has called SB1070 misguided in order to appeal to the lathered-up pro-illegal immigration corner. Then he appeals to “misguided” voters by assuring them that he is gung-ho when it comes to enforcing the immigration laws.

The best part is, Obama never has to deliver on his campaign promise to push through an immigration bill with a path to citizenship in his first year. Or his second year. As long as pro-illegal immigration forces focus on Arizona, Obama and Washington get a free pass.

No wonder Assistant Secretary of State Michael Posner happily announced at a recent press conference that the American delegation brought up the Arizona law during human rights talks with China, a nation with some of the worst human rights violations in the world, as an acknowledgment that the United States has human rights issues of its own to work on.

Quoth Posner, “We brought it up early and often. It was mentioned in the first session and as a troubling trend in our society, and an indication that we have to deal with issues of discrimination or potential discrimination, and that these issues are very much being debated in our own society.”

For his next trick, perhaps Posner can assist in the return of a North Korean escapee to the homicidal regime from which he desperately was trying to flee.

And what did Posner win for his efforts? Bingo: a new round of talks to be held in China in 2011. With any luck, this will give the administration a chance to give up for global censure Maricopa County Sheriff Joe Arpaio as a too-flamboyant advocate for tough immigration enforcement.

Meanwhile, back in the United States, the Obama administration was working overtime not to know what was in the Arizona bill. Attorney General Eric Holder declared the bill could lead to racial profiling — before he admitted to the House Judiciary Committee on May 14 that he had “not had a chance” to read the 17-page bill. Homeland Security Secretary Janet Napolitano said that she would have vetoed the bill — as she, too, had to admit she had not read it.

Now you just know that if these folks thought they would have found something damning in the bill’s language to throw against the Arizona Legislature and Gov. Jan Brewer, they would have read the measure ASAP.

Thursday, Obama declared, “The United States is proud to walk with Mexico.” As Posner told reporters, the administration is anxious for any opportunity to engage in a respectful and informed dialogue with Beijing. But don’t expect Obamaland to try to show the same eagerness to understand the Arizona law.

If Obama were a unifying figure, he would try to end the boycott wars that threaten to pull this country further apart. If Phoenix were Beijing or Mexico City, then the White House would be working overtime on a policy to accommodate both the Arizona bill and the administration’s important goal of preventing racial profiling.

But as far as this administration is concerned, Arizona might as well be an enemy nation.

Thank god Governor Brewer has the strength to take on the Feds.  We are, after all, a representative republic, with states rights. It is time that Americans take back their country from these ignorant leftists!

Gold is going up!  Be prepared, because when everything is upside down, the moves occur suddenly and violently!

Gold, up or down?  That is the question.  There are many variables, but when they are all laid out, it looks like the weight is on the upside.  Time is the ultimate arbiter, but if the question is gold up, or down, the odds favor gold up!

Till next time, good luck and good trading!

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