Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Is gold rising because America is broke?
International Business Times ^ | April 24, 2011 | By Jijo Jacob

Posted on 04/24/2011 5:56:00 AM PDT by Oldeconomybuyer

Gold prices shot up to a new record of $1,512.50 an ounce in New York late on Friday, posting a record weekly gain and maintaining a six-week winning streak.

While a lot of gold investors are laughing all the way to bank the world over, gold's super cycle rally could have ominous meanings for the US economy.

Analysts have pointed out that gold's advance into what is termed as a super cycle does not bode well for the US economy.

A sustained gold and oil boom indicates that the dollar is slipping into grave danger and the economy closer to collapse, according to Daily Markets analyst Michael Snyder.

"... when these commodities go up in price it is a sign that the U.S. dollar is dying and that our country is getting closer to economic collapse," Snyder wrote recently.

He explained that when the gold and silver prices soar, it indicates that investors everywhere in the world are losing trust in the dollar and the U.S. government treasuries. And they seek out something they can trust more.

"The U.S. has been running trillion dollar deficits for several years now, and this has created a lot of new money." And he says the rest of the world is now seriously doubting the sustainability of U.S. government debt.

(Excerpt) Read more at ibtimes.com ...


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: debt; failure; gold; goldsilver; obamanomics; silver; socialism
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-64 next last
 
Hey, the collapse of the US Dollar is Bush's fault.

1 posted on 04/24/2011 5:56:04 AM PDT by Oldeconomybuyer
[ Post Reply | Private Reply | View Replies]

To: Oldeconomybuyer

We’re not the only ones who are broke. But, yes.


2 posted on 04/24/2011 5:57:43 AM PDT by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer

Yes.


3 posted on 04/24/2011 5:58:10 AM PDT by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer
Flood the world with dollars, spend trillions instead of billions on useless projects, welfare,vote buying and the dollar becomes worthless and gold/silver priceless.
4 posted on 04/24/2011 5:58:37 AM PDT by rodguy911 (FreeRepublic:Land of the Free because of the Brave--Sarah Palin 2012)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer
No because of this man.


5 posted on 04/24/2011 6:01:00 AM PDT by Perdogg
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer
Naw. All that's happened is a bunch of rich Arabs are scared to death they'll be dragged out by mobs and murdered. The Chinese government let Chinese buy gold last year ~ so they bought gold. They don't care. China has a long history of going through all sorts of disasters that throw the broad masses back on their resources ~ mostly to buy off the new warlord's troops ~ then stuff slowly returns to normal.

Indian people have a history comparable to that of the Chinese and they are also buying gold.

So, that gives us half the people in the world preparing for imminent economic disaster, and the richest people in the world preparing to bug out to "Europe" and "America" ~ 'cause that's where their gold is!

It's hard to figure out what's happening to the "dollar" in all that because this is what's happening to the "over seas dollar".

Maybe a reference to Portuguese, Belgian and Spanish economic history in the 1600 - 1800 period might be in order.

The Spanish Milled Dollar continues to have strong value in the open market.

6 posted on 04/24/2011 6:03:15 AM PDT by muawiyah
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer
A sustained gold and oil boom indicates that the dollar is slipping into grave danger...

Those cows have left the barn. The only reason that everyone doesn't already know this is that they are in deep Leftist denial. The talking heads aren't stating the obvious, because the "connected money" needs to get fully repositioned without trillions of dollars of 401k money stampeding for the same exits.

7 posted on 04/24/2011 6:04:33 AM PDT by SampleMan (If all of the people currently oppressed shared a common geography, bullets would already be flying.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer

It’s all about perception. If everyone thinks we’re broke then the price goes up.

But, yeah, we are and getting more so every day that loser is in office.


8 posted on 04/24/2011 6:06:27 AM PDT by bgill (Kenyan Parliament - how could a man born in Kenya who is not even a native American become the POTUS)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer
i look at the price of gold as an indicator of the strength of the dollar, not the intrinsic value of the gold itself

the more dollars it takes, the weaker the dollar

9 posted on 04/24/2011 6:07:35 AM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer
Silver Black Swan If Rampant Speculation Is Not Reined In
10 posted on 04/24/2011 6:10:01 AM PDT by blam
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer
We are not broke we are in the hole $100 Trillion.
11 posted on 04/24/2011 6:24:23 AM PDT by mountainlion (America land of the free because of the Brave.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: muawiyah

The Pillar Dollar. The Cobs. They still have worth. Pieces of eight. Doubloons!


12 posted on 04/24/2011 6:40:42 AM PDT by screaminsunshine (Shut up and eat your Beans!)
[ Post Reply | Private Reply | To 6 | View Replies]

To: SampleMan

I dislike the Left intensely, but I don’t believe they are stupid. IMHO, their behavior is not a matter of irrational denial. They know very well that the economy is in collapse mode; they are simply trying to keep this ugly reality penetrating through the thick skulls of the general public until the 2012 election, when they will then loudly proclaim it all to be the fault of the Republicans and capitalists.

Mark my words on this. I am convinced this is the Left’s game plan.


13 posted on 04/24/2011 6:45:50 AM PDT by Senator John Blutarski (The progress of government: republic, democracy, technocracy, bureaucracy, plutocracy, kleptocracy,)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Oldeconomybuyer
I just don't get it.

Gold is a good conductor of electricity, but has few other practical uses. As end of civilization currency it's worthless, (at least to me.) I'll barter you some food for ammo, but certainly won't accept Gold in exchange for anything.

14 posted on 04/24/2011 6:49:49 AM PDT by ASA Vet (Natural-born citizens, are those born in the country, of parents who are citizens. De Vattel)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ASA Vet

As end of civilization currency it’s worthless, (at least to me.) I’ll barter you some food for ammo, but certainly won’t accept Gold in exchange for anything.


Let me help.

1. People with spare food or ammo in a crisis will gladly be taking gold for some of their spare supplies. Because...
2. While gold might not help you survive a crisis (though it can, as point one illustrates) it has ***always throughout human civilization*** helped wealth survive a crisis.

Also, there has never been the time when gold did not buy the affection of beautiful women.


15 posted on 04/24/2011 6:55:40 AM PDT by Atlas Sneezed ("If you touch my junk, I'm gonna have you arrested.")
[ Post Reply | Private Reply | To 14 | View Replies]

To: Oldeconomybuyer

Gold is rising because:

1) the ongoing fiscal insanity in the US
2) the ongoing printing and subsequent devaluing of the dollar
3) the world is pegged to the dollar...1 & 2 apply here, as well.


16 posted on 04/24/2011 6:56:01 AM PDT by cranked
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer

No. It is called a world wide shortage. Anybody bothering to check over the years would have seen gold use in the world going up and up and production not keeping up.

If a huge gold vein was discovered tomorrow, and it might happen at these prices, watch the price tumble.

PS: What do you think goes into all these electrical devices in minute quantities in each and every one? Add to that the quantities used in currency and so much of the world having a few dozen gold coins in reserve and what do you expect?


17 posted on 04/24/2011 6:58:13 AM PDT by macquire
[ Post Reply | Private Reply | To 1 | View Replies]

To: ASA Vet

Also, don’t fall into the straw-man rhetorical trap of implying that those who advocate some precious metal investment are counseling it as an alternative to buying food and other tangibles necessary to life.

Also try to avoid the bad logic of those who argue from the false (or improbable) premise that no food exists, therefor gold won’t save you. (If no food exists, then nothing will save you.)


18 posted on 04/24/2011 6:59:37 AM PDT by Atlas Sneezed ("If you touch my junk, I'm gonna have you arrested.")
[ Post Reply | Private Reply | To 14 | View Replies]

To: Oldeconomybuyer
Gold is rising because they dollar has been/is being devalued like Brasilian Cruzados and Cruzeiros in the late 80's/early 90's.

I remember going shopping at a Supermarket in Rio in the early 90's before the change to the real. A woman was reaching for a can on the shelf while a clerk was busy trying to keep up with marking each can with the current price. The inflation rate was 300% if I recall at the time.

As the woman put her hands on the can, the clerk hit the same can with the new price tag. The woman turned so I could see her face...the rage was unnerving. The clerk was lucky not to lose some teeth that day or have a can thrust in an uncomfortable location.

I don't believe our leadership is as competent as the Brasilian government was at that time. I believe our government is going out of it's way to make this third world scenario reality for all Americans.

19 posted on 04/24/2011 7:00:23 AM PDT by Caipirabob ( Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ASA Vet

When you change your mind, and you will eventually, will be about the time we gold bugs should sell.


20 posted on 04/24/2011 7:01:48 AM PDT by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
[ Post Reply | Private Reply | To 14 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-64 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson