When you print trillions of dollars, those dollars have to go somewhere.
True,
but they're not going to the US population. A huge amount of the dollars have
gone to save Wall Street, to save the big banks and the auto industry. The
banks, AIG, they were considered 'too big to fail.' They had to be saved, there
was no choice. How much went into saving the corporations who were 'too big to
fail?' Well, that hasn't been announced yet. The Fed knows, but it won't talk.
The Fed has fought any audit tooth and nail. As I write, there's still no audit.
What's the secret scandal that lies behind the Fed's reluctance to be audited?
What's the dreaded, embarrassing secret?
Meanwhile, the Obama-Bernanke-Geithner team wrings its hands as the economy
refuses to respond to the trillions of dollars in spending. What's the
solution? The solution is obvious -- spend more -- and more. It's madness --
they're bankrupting the USA with spending and debt.
Would it have been better to do nothing, to let the institutions that were 'too
big to fail' just fail? Would it have been better to allow the bear market to
play itself out and end in exhaustion? I've said that's what they should have
done in the first place.
My argument -- there isn't enough money in the world
to halt and reverse a primary bear market. A Princeton professor thought that
dropping money from planes, if necessary, could do it. The Fed has 'dropped
trillions from its computers' and still the economy refuses to revive. But the
money had to go somewhere. That somewhere was the stock market The stock
market advance is the latest Fed-created bubble.
Hail to the Fed. And hail to the men who run it. Fed Chairman Greenspan
created the housing bubble. Fed head Bernanke is creating the current stock
market bubble and maybe the ultimate bankruptcy of the US.
. . . and from Mary Anne and Pamela Aden, co-editors of The Aden Forecast, in
the October edition of their newsletter:
"SILVER: Better than gold
Silver is more volatile than gold. It fell more than gold last year, and it's
risen more than gold this year. This makes sense because silver is both a
precious and a base metal.
To foresee silver's potential compared to gold, look to copper as a guide.
Copper is a good barometer because it rises during times of global economic
growth. That is, when you see both gold and copper rising together, then silver
will most likely be stronger than gold.
When global economic growth is strong, like it was in 2003 to 2007, silver shot
up much more than gold . . . This year silver has gained almost 100% from the
Nov 2008 lows to last month's highs, compared to gold's 45% gain. During the C
rise since April, the rise has been even more dramatic. Silver's up 48% to
gold's 17-1/2% gain.
If global growth remains on a positive track, we will continue to see silver
outperform gold.
Note that silver's been in a strong rise within a solid upchannel since 1998.
But silver's leading indicator shows that a renewed rise is just getting started
as it's moving up from a low area, which coincides with rises in the silver
price. But silver is poised for a great upmove and it's very strong above $16.
Its next target is the $19-$20.80 level, the 2008 highs.
-monex
October 9th, 2009
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even though Pd is at the top of the channel, i bought some 1 oz. maple leafs today. it has good potential to go down short term, but long term trend is up. the need for Pd should increase as more and more green cars are manufactured. |
