Ladies & gentlemen: buying T-bills up and changing
them from short due-date to long due-date as the Fed is doing does not create wealth.
It is simply paper shuffling.
It is an illusion of wealth creation. It creates no
wealth.
The rising USD in relation to gold copper and the
global indices is an illusion...simply a response to a
(short-term) sleight-of-hand. Thursday’s indices tanking is a vote of no- confidence in Bernanke. Fleeing gold is nuts. Fleeing stocks of companies that really produce things that people value and cannot do without, the companies that actually create wealth, and to move that money into Bernanke Dollars, is approximately like trading a gold ring or the deed to an acre of land for a wooden deck chair on the Titanic that looks like it might float as the ship upends and breaks up.
Gold is profoundly undervalued and so are the shares of dozens of the USA’s and the globe’s best and most profoundly Wealth-Creating companies
This is very important. You’re seeing dividends tied,
for the first time, to Real Wealth, to Commodities, not to paper.
As gold has become the New 21st Century Money, so
also will silver, not far down the road, this decade.
By late in this TwentyTeens decade you’ll see great companies tying their Q dividend payment to the price of gold & silver.
Allow all this to play out. But stay away from those T-bills... it is only a short term play.
IMO, it's what the FED didn't do, which was to immediately implement QE3, is one of the reasons for a strengthening dollar - that and Euro panic.
is approximately like trading a gold ring or the deed to an acre of land for a wooden deck chair on the Titanic that looks like it might float as the ship upends and breaks up
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uh...if wooden deck chairs were scarce, that would be a very wise trade in my opinion.
The July 1st closing price for Gold was 1486.6. Why do people get their pampers damp when we are trading at 1674.0.
Funny stocks fall 20% and it is a buying opportunity, Gold falls 20% and the Luster is Gone!
I know why it has been so easy to fleece the American public.