Don's Column - "Dry Pool" -
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The picture, if one could take one of the economic situation in not just the U.S. but the world, is just plain UGLY. Governments are printing like mad. The euro was printed by 96 billion and inserted into the European markets yesterday, and this morning the fed is printing $19 billion to buy up some soured mortgages. The more they print, the less they will buy.
People are scurrying around, selling stocks and buying bonds backed by nothing. The euro, buck, yen, yaun, peso, bonds, etc are PIECES OF PAPER and backed by nothing. I was going to go into a long analysis of what's going on, but what for? It's just trying to swim in a pool that has no water.
There are millions of homes going into foreclosure because of stupid lenders. Those lenders sold those loans to someone else, and they may have ended up with Fanny Mae or Freddie Mac, which are government sponsored corporations. The Plunge Protection Team has been buying stocks like mad to try to keep the stock market up, and the D.C. Gang releases fake figures to assure the sheeple that all is well, and it isn't. Oh but it is! We who own gold and silver are just fine! Our possessions aren't "backed," by endless promises and pieces of paper. They stand alone.
Lots of gold and silver has been sold by desperate people and central banks to meet margin calls, and inject "liquidity" into a failing system of paper, promises, and empty swimming pools which are impossible to swim in, because they are empty of water or substance. This has made gold and silver go down a bit and given us great buying opportunities. The paper backed investment swimming pool which has looked so inviting to so many for so long, has turned out to be empty. Empty homes, failed mortgages, failed hedge funds and investment outfits, are dry pools. Those of us who are free of debt, and own gold and silver, feel very sorry for the rest out there. We do. We have tried to advise, but few paid attention.
I really hope that we don't get into a state of economic collapse, but some say it is possible. If the chain of events continues, there will be mass unemployment, a repeat of the fed caused 1929, and no one wants that. Greenspan's fed caused this. I continue to urge you and everyone else...GET OUT OF DOLLARS, and while you are at it, have a great weekend!
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