Posted on 11/10/2010 11:29:31 AM PST by GilGil
This is not an article about investing in gold. This is an article about the total collapse of the dollar and Obama’s utter mismanagement of the country.
That gold will reach $1600 by next January is a given. Things are falling apart so fast, that very few people understand the dynamics of this implosion.
As we have said $1600 is a given.
Where $5,000 comes in is a function of how quickly the liquidity of quantitative easing (QE) reaches all the cogs of the economy. The rapidity with which the QE lubricates the economic machinery is a function of the Federal government’s ability to move fast enough and to do the right thing.
If the Federal government fails us, values will start collapsing and there will be a total loss of faith in the dollar’s inherent ability to hold value. When that happens, markets will panic and go to the only store of value left which is gold and the $5,000 price tag will be reached. That loss of confidence has already started.
(Excerpt) Read more at examiner.com ...
You know, people always use that horse and also the “buggy whip” analogy, and they’re not very valid considering there are more horses here now than in the 1890’s and an equivalent # of whips...
That notwithstanding, the primary disconnect in the long term ratio, aside from industrial usage of silver, was the onset of central banking and unbacked currency issuance, and you can see how well that’s treated us so far...
I remember a story about a Jewish lady who kept pawning one of her gold earrings to get the other one out. The money she made off the difference paid all her bills.
There’s so much you can do with Gold if you have enough to get an appreciable amount in the first place.
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