Tuesday, April 16, 2013

GOLD AS A HEDGE

Too many believe that gold is a hedge against inflation.

And it is but only indirectly. Gold is a hedge against central bank and government incompetence.

"I'm from the government and I'm here to help you." Besides "I promise to faithfully...," there's probably few more dangerous words around.

Notice in the last few days how often the 1300 level's been mentioned in MSM. The parrots are in good cackling order. Forget crackers. What these folks really want is restitution. 

In this case restitution of their alleged reputation as financial seers. Something with gold hanging on above 1600 was, like the words of an old Simon and Garfunkle tune, slip, sliding away.

If you understand the definiton of concerted, you're starting to get it. This is little more than a not-so-subtle concerted effort to pour more oil on the printing presses--the usual bureuacrat soultion to WTF's happening here?

Gun control is a hot button issue these days. But what about Ph.d-control?  The damage these folks can wreak, to use a good economic term, is incalculable. Maybe we should label it, aggregate damage, so nobody would understand.

The one thing you need to understand--and soon if you don't already--is nobody's safe.

And now you know what gold is. So keep your construction-site hard helmet close at hand. 


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