Here is an interesting comment on Gold.........
>> Jim Blanchard, began the Blanchard Company more than a quarter of a century ago. Jim went to his grave a couple of years ago still trusting in gold and believing it would come back. But on January 1st, 2002, his company sent clients the following remarkable message: "Effective as of January 1, 2002, Blanchard and Company is changing its business practices and policies in order to limit its exposure to falling gold prices, and recommends to its clients that they do the same. As of that date Blanchard will not maintain inventories of gold bullion or gold bullion products, nor will it market gold to, or solicit gold sales to, Blanchard clients." "Gold is no longer a hedge against inflation, devaluation of the dollar or falling stock prices," continues the mailing from Jim's old company. "It is no longer a store of value. The very idea of gold's intrinsic value - value that is not dependent upon the actions or promises of any government - is publicly questioned by senior central bankers, and by the heads of major financial institutions."
Greenspan had made a joke of it just yesterday in his speech. Gold has been so thoroughly discredited that if paper money ever fails, he mused...we'd have to go back to exchanging sea shells or oxen.
"In that unlikely event, I trust," he recalls his words, "the discount window of the Federal Reserve Bank of New York will have an adequate inventory of oxen: Heh, heh..." <<
Source: DailyReckoning.com |
