Friday, October 31, 2008

War Of Attrition

http://www.gold-eagle.com/editorials_08/west102908.html

The gold price is going to explode due to the incredibly vast amounts of
liquidity (monetary aggregate) that has been put into the US (and world)
economies by their respective central banks. It's really a simple
concept. The more money placed into circulation (that is not directly
proportional to tangible wealth and economic activity) is vastly
inflationary, and devalues the currency. The world has placed at least
approximately $3 TRILLION of money into the economy over the last few
weeks. This is going to work to destroy the value of any currency, and
will cause a massive price explosion in tangibles, especially precious
metals. This may sound like a bunch of crap to the uneducated, but you
can mark my words, and a year from now, you will see.

The mainstream media is being used to mollify the concerns of the
average viewer who relies for all of his information from the
television. That is the same thing as the sheep asking 2 wolves what's
going to be served for dinner! It will take courage and great
understanding for the average person to stand up for his own interests,
and against the numerous rantings of the 'talking heads' placed on the
television as the financial experts. How have those stock investments
been working out for you lately? Even if you have nominally kept your
same cash values (which you probably haven't), you are also going to
lose big money when the US dollar starts to tank again. None of the
fundamentals that have weakened the USD have changed. In fact, they
have all deteriorated.

You need to start reading and learning something so that you can make
your own investment decisions. Even if you can't get that much
sophistication, you need to be asking your financial planner some very
tough, well-constructed questions about your portfolio, or you're going
to be another victim of the System.

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