25 REASONS WHY GOLD WILL RISE
a great many reasons and forces behind the push in gold
war is but one of them, see item #5
the beauty of GOLD is its buyers' many motivations
take away one like war, and you are still left with many others
almost every single item in the outline is strengthening
item #1 is HUUUUGGE
WITH THE FED RATE CUT, NOW THIS POWERFUL FORCE COMES FRONT & CENTER
real rates on shortend of Trez yield are near zero
possibly negative
since October 2001 or so
this is the major sentinel signal over the last century
compiled from analysis, study, observation, dismay of markets, participants, corruption, deception, failed policy, basic ineptitude, conflict of interests, general fleecing of the public, all stemming from the folly that is the Strong Dollar Policy
get ready for a Vicious Circle as the USDollar resumes its decline
the below outline may soon appear on a website near you
a full article with developed points and full introduction
oy veh, the Jackass published in a formal article
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the outline begins with bonds, then federal/fiscals, politics, banking, mining, trade, commodities including currencies, economic cycles, with a final point reflecting on history
1. real rate of interest has been near zero since Oct2001
2. rise in foreign holdings of US assets increases our vulnerability to foreign abandonment
3. money supply increased over 40% since Jan 2001, close to 100% rise since 1991
4. return to federal deficits from recession and wartime economy, security spending
5. rising world tension, desire for safer safe haven, the geopolitical threat to peace
6. Glass-Steagal Law repeal now heightens risk of financial cluster failure in progress
7. world perception of American institutionalized dishonesty
8. likelihood of systemic banking shock waves from debt collapse and derivative chain reaction
9. sharp increase of savings across Asia in the form of gold
10. reduction of USDollar usage as both store of value, banking reserve asset
11. Islamic world is planning gold-centric international commerce, distancing from USDollar
12. Bank for International Settlements has targeted the US dollar for a corrective decline
13. reversal of miner hedges, end of gold leasing, reducing supply
14. dismantled mining supply apparatus, from systemic price below production
15. paradox: high gold price leads to higher demand, and high price leads to lower supply
16. trade tariff resumption discourages global trading village concept
17. USDollar correction to relieve the trade imbalance could result in a currency crisis
18. accelerating worldwide currency turbulence
19. European currencies offer more attractive alternatives to USDollar, with Swiss Franc leading
20. the calendar date Sept 11th marked the turning point for USDollar in two critical years
21. rising costs from entire energy complex (crude oil, natural gas, heating oil, gasoline)
22. commodity trend reversal has begun, the beginning of a new longterm trend
23. Kondratieff Winter is gathering speed and force
24. divergence toward deflationary credit-based economy, inflationary cash-based economy
25. the parallel between gold’s rise in the 1970’s and 2000’s has many components
/ jim |
