taken as a clip from "Gold Volcano" article
The gold rush has more dominant roots in the progressive failure of the post-bubble US financial asset markets, the debt-suffocated economy, and the faulty monetary system founded upon a debt-backed reserve currency.
The gold rush finds its origin in a dangerously overvalued USDollar, coupled with discouraging fundamentals and extreme imbalances in the USA Inc "stock share." Consider basic theory of the firm. We have a national stock share with a hemorrhage of rising losses (trade gap), guidance of growing future debt levels (budgeted federal deficits), dividend below zero (negative real interest rates), uncontrolled new share issuance dilution (expanding money supply), a labor force suffering from fatigue (household debt), slumping product demand (excess capacity), large foreign ownership (hostile share holders), fraudulent financial books (raided Social Security Trust Fund, no Gold Reserve disclosure), and deceptive reporting (economic aggregates). Conditions are perfect for severe devaluation, as a wartime economy undermines productive investment and a consumption emphasis takes firmer root. If this were a company's stock, it would plummet. This article addresses from a higher level, without a flood of data, what the major roads are that now deliver surviving capital toward gold during a frightening time when monetary system fractures are emerging and capital is tragically being set ablaze. Roadways are now delivering money into the gold sector, like magma flows through breaks in the earth's mantle. More roads will be built soon, even as existing roads are widened so as to cope with larger capital flows.
/ jim |
