I say this because, while readers know that I have complete contempt for the Federal Reserve, it is beginning to scare the daylights out of me. Yesterday's statement, in which it discussed "an unwelcome substantial fall in inflation" is the clearest declaration yet that the Fed will not tolerate "not enough inflation." At some point, I fear foreigners are going to freak out, and I fear for the value of the paper dollars that I have accumulated over time. I may be overreacting, and I may be way too early, but the Fed has no business saying that it won't tolerate a certain level of inflation, or that it won't tolerate deflation, even though I think deflation is unlikely.
He's right, you know....<G>
Frankly, I came to the same "buy and hold" decision on the metal some time back, and that was why I made the seemingly irrational decision to "dollar-cost-average" down (or is it "gold-ounce-average" up) on the bullion. I caught quite a bit of $hit for it, too, from some posters here, but gold is your only way out of the Matrix of FRB-denominated assets. As such it holds a unique place (or should) in everyone's financial asset portfolio. I've got some gold shares, too, but I never confuse or combine the roles of the two. Over time I expect to roll out of the paper and into the physical on a steady basis. The gains from the bear were too hard-won to let them dissolve in a Fed-driven orgy of ClownBuck excess.....
Abandon Fiat money....trust gold!<NG> |
