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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (25591)	6/19/2007 4:15:52 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81767

Phil > Looks like they are buying into the low inflation b.s. Hell, no! That's not the way I read it, in fact quite the opposite. By the way, these are very smart ladies -- they called the 1978-81 bull market in gold perfectly and that's when they made their name. And you know well that I'm not someone to be impressed by names. >>MONEY-MONEY-MONEY... Spending, money and inflation are the other three big factors we’ve often discussed and they are equally important. In fact, that’s really what this long-term bull market in gold is all about and it’s the essence of the perfect storm. The U.S. is the world’s largest debtor nation. It keeps spending money in amounts so large it’s difficult to put it into perspective, but we’ll try… For example, at $5 million per day, it would take nearly 40,000 years to pay off the U.S. debt and liabilities. The Iraq war alone is going to cost the same amount as all of the gold that’s ever been produced in the world since the time of Christ... and on and on. It’s all truly mind boggling but it’s happening and it’s going to intensify. How do we know? The baby boomers are approaching retirement and their numbers are huge at 26% of the total U.S. population. The bottom line is that 20,000,000 of the retiring boomers do not have enough money to retire on. They’ll have to rely on Social Security and Medicare over the next 20 to 30 years. In addition to the majority of retired Americans who already depend on Social Security, this is going to zap an already badly strained system. Not to be gloom and doomers but these are the facts. Very simply, the boomer effect is going to exacerbate the debt problem. ... DRIVING ALL ASSETS HIGHER As we’ve often pointed out, to pay for all its expenses, the government simply creates money and it’s been creating piles of money. Interest payments on the debt alone are about $200 billion annually. Other countries have been pumping out lots of money too and this massive, worldwide liquidity has been driving all assets higher. From stocks to commodities, precious metals, oil, currencies, art and real estate… if it’s an asset it’s probably been rising. That’s the good news but there’s a price to pay for all this money creation and it’s a high one. Inflation is the direct result of excessive money creation. So far, most people haven’t noticed much. Sure, they’ll complain that their money doesn’t go as far as it used to, but as spending, debt and money grow, inflation will too. This will also make the dollar worth less. There are too many dollars floating around, which cheapens the currency and that’s one of the main reasons why the dollar’s been falling and why it’ll continue to fall. And since gold is a hedge against inflation and it moves opposite to the dollar, that’s why gold will continue rising.<< > I don't know if anybody believes anything anymore. Food is up, all government services, municipal taxes, fuel, and other essentials are up and going higher. Price of homes has simply exploded. All over the world it's the same story, not only in Canada.