The GOLD Boom - 5 reasons why fear is spreading through the financial markets…
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The GOLD Boom - 5 reasons why fear is spreading through the financial markets…
On October 2nd, 2009, gold was consolidating around $990 an ounce. By October 13th 2009, 11 days later, gold had shot up to $1068! In just under 2 weeks, gold had gained $78 per ounce! Why the rush into gold? What has investors and speculators alike shaking at the core for our “world financial system”? Why the flight to gold? Here are 7 sound reasons why gold is booming and fear is spreading through the financial markets….
#1 - The Great “Awakening”
Financial investors are savvy - they have to be, otherwise they watch mountains of money turn into black holes of debt. They are paid to speculate and are rewarded handsomely for being on the right side of their bets. Right now, they’re betting against the Federal Reserve and justifiably so. The private banking institution and it’s magic clandestine money is being recognized for what it actually is - paper money with no real value. Gold is the obvious opposition to paper money.
#2 - Political shifts
Have you ever read LewRockwell.Com or Kitco.Com ? These are incredibly popular websites that focus on both the gold financial markets (KITCO) and gold as a political tool. (LEWROCKWELL) Readership for both websites has drastically grown in the past 2 years and LewRockwell.com is in the top 6,000 websites in the entire WORLD. Kitco is ranked in the top 4,000. Think people aren’t interested in the real value of gold?
Political shifts impact gold prices. Liberty minded individuals trust the intrinsic value of gold rather than the corrupt paper money of artificial value. Remember the Weimar Republic of Germany? Who says that can’t happen in the USA and/or Great Britain?
#3 - The FED RESERVE is full of lies
When the financial sector hears words such as, “We need a strong dollar” from central bankers such as Timothy Geithner, Ben Bernanke, Alan Greenspan and others, the words go in one ear and right out the other. Why? Because the ACTIONS of the Federal Reserve is exactly OPPOSITE of their words.
Listen to what Greenspan once said about dollar policy,
“It was boring, it was dull, it was repetitive, it was nonintellectual, and it worked like a charm,” is how Alan Greenspan once described it when he was Fed chairman. “By not varying the statement, an issue never arose about whether a comment involved a subtle change or not in the policy toward the dollar.”
While they SAY we need a strong dollar, they DO exactly the opposite. Is it any wonder the American dollar has depreciated and will continue to do so? Investors know and understand the “system” and have moved to GOLD as a safety net.
#4 - BAILOUTS
Most Americans were taught to think the financial bailouts were necessary to “save our financial system.” They see $700 billion dollars go towards government interaction to save institutions like AIG, GM and are told, “this is good for you and good for America.” - Well, Americans are calling BULL CRAP on the bailout game!
When over 70% of the American population vote NO to the bailouts, and yet they’re still passed, the common Joe knows he has no real authority for American economics. The bailouts simply were another redistribution of wealth. Isn’t that what socialism does - redistribute wealth?
#5 - CHINA CHINA CHINA
So let’s see - China has over $1 trillion dollars in reserves. China has the ability to basically wage war with America and not kill a single soldier. It can crush the American economy by simply flooding the system with more dollars that it holds.
The faster China and other nations dump the dollar, the less purchasing power the dollar has. The less purchasing power the dollar has, the more the consumer economy of America has to borrow. It’s an no win game for the negative savings rates of average Americans. China wields tremendous power.
And what does China teach its citizens to do? Buy gold and buy silver.
The move by China to replace the U.S. dollar and its big push to accumulate large gold reserves are clearly an economic threat to the United States. It is only the reserve currency status of the U.S. dollar which has kept its value grossly inflated relative to its actual worth and kept U.S. borrowing costs artificially low.
A plunge by the U.S. dollar to its real value (somewhere not far above zero) would unleash crippling inflation in the U.S. (if not actual hyperinflation), while a rise in borrowing costs would strangle its crippled economy. Given that suppressing the price of gold has been a principle strategy by Western bankers to keep the dollar artificially propped up, China’s zeal for gold (and silver) is also strongly against U.S. interests.
Whether the official urging by the Chinese government for its citizens to buy precious metals is merely prudent, “fatherly” advise to its citizens, or part of a somewhat more sinister campaign the result will be the same: soaring precious metals prices indefinitely into the future.
Conclusion
Why is the price of gold consistently pushing higher? What is happening in the American financial system - and the worldwide financial systems? Are citizens learning that paper money is a form of theft?
Is there a “great awakening?”
Is the Federal Reserve full of lies?
Did the bailouts impact the value of the dollar?
Are the political shifts real?
Does China have an economic advantage?
If you can answer “yes” to these questions, you understand exactly why there is major fear in the financial markets and why gold has risen so dramatically in such a short period of time.
What do you think? Where will the financial markets and gold take us in the future?
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