Cutting interest rates below inflation, Bernanke & Co. believe they're somehow going to help both workers and business. Quite how remains unclear; devaluing money so no one can trust it seems an odd way to fix the economy.
-- Adrian Ash BullionVault
Gold cannot be printed and mining output is 9% lower than a year ago. The Bernanke Fed is playing Russian roulette with the greenback, and a serious breakdown of the fiat (paper) currency system might only be a Fed rate cut or two away.
-- Gary Dorsch, Editor, Global Money Trends
This problem of derivative failure is far from over. It has bankrupted the major international institutions who have been saved only by selling their souls to anyone anywhere with cash willing to buy them.
The system has gone broke and the meltdown has only so far hit credit derivatives. There is much, much more to come because of the present recession and the fact that more than 50% of major international banks and investment companies are heavily into derivative creation.
The financial groups are now facing plummeting earnings, restricted capital positions and super-sized litigation against which there is no defense.
If you do not have gold for insurance you are naïve.
-- Jim Sinclair http://www.jsmineset.com/home.asp
There was considerable fanfare some days back when gold broke out above its nominal highs of early 1980, but this was actually a fairly meaningless event given that the money supply has expended enormously and the dollar has been savaged in the years that have followed, so that if gold were just to attain its 1980 value in real terms, it would have to ascend to something like $4000 an ounce. Thus it is clear that there is still plenty of upside potential, especially as the world financial system is in a much more fragile state than it was back in 1980.
-- Clive Maund
The music in the background is “Glory Days” by the boss Bruce Springsteen, played for GOLD and its numerous investment trombones.
-- Jim Willie CB, GoldenJackass.com
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