GZ:
For a generation, a New York Times/CBS news poll has been asking Americans this question: "Do you think you can trust the government in Washington to do what is right?". In 1995, those who answered "always" or "most of the time" stood at 18%. It rebounded to 55% in the immediate aftermath of 9/11. It stands (at the most recent sampling in the northern summer of 2003) at 36%. One can only hope, for the sake of America and the world, that the percentage has continued to fall in the six months since then.
In fact, I would suggest a different question: "Do you think you can trust the government in Washington to tell you the truth?" Well, do you ...? The same Fed Governor, Ben Bernanke, who introduced the concept of "deflation" (conveniently redefined to suit his purposes) in late 2002 was quoted in San Diego, at the same venue where ClownBoy Greenspan made his speech, as stating that the risk of a currency crisis affecting the US Dollar was "quite low". That was on January 3, 2004. On the first trading day of the first full week of 2004, January 5, Gold soared $US 8.70, Silver exploded upward by $US 0.28, the Bank of Japan spent $US 5 Billion (or more) trying to support the Dollar, and the $US Index hit a new bear market low of 86.35. For more than a year, the Fed has been promising to do whatever is necessary, up to and including outright Treasury debt monetization and literal printing, to stave off "deflation" or, in their words, falling prices. The results can be seen in the accelerating downward spiral of the Dollar and upward spiral of commodities in general and Gold and Silver in particular. The results can not - yet - be seen in falling stock markets, and that is the direction in which most of the world is looking. |
