That is true, and the fact that former financial derivative
bankrupt players are now the government. Gold is a tiny market
of roughly 80 billion. It cannot accommodate everyone seeking
safety from sovereign debt crisis without an enormous
increase in price. I guess a few folks get it by now, so
the price keeps soaring.
U.S. government is more bankrupt than the State of California.
However, unlike the State of California, The Feds own the
printing press. It cannot pay its debt without utilizing the
printing press, even though this process is hidden now:
The Fed monetizes the Mortgage market and Fannie/Freddie
Even though Fannie/Freddie guarantee virtually all mortgages,
the government pretends they don't own the mortgages, but
Fannie and Freddie does.
Yet, Fannie and Freddie are fully government agencies, so
their debt is guaranteed by the government.
A full circle to hide the poor state of sovereign liabilities,
to avoid the inevitable dollar collapse.
The Fed monetizes junky part of MBS, then banks sell them
(at high price) and buy treasuries to clean up the
balance sheets, since treasuries are "risk free".
They now pretend no monetization of US government takes place,
even though monetization of MBS going at full speed.
This is nothing but sovereign default play, and the government
is playing their games to mask the truth and avoid a complete
panic, the currency crisis, which would be enormously bullish
for gold and very bearish for T-bonds and stocks |
