Times That Try Men's Soul & Why Gold Matters (Martin D Weiss) Why is Gold rising, when the USD and the Euro are falling? It surely can't just be fear? Before he passed away, my father warned that the next great financial crisis, like The Crisis Thomas Paine wrote when our nation was born, would bring "times that try men's souls." Especially vexing, Dad said, would be the uncanny similarities that seem to hark back to the past, but are actually hiding vast differences — unique, new conditions that make the next crisis unlike any other in his lifetime — or mine. In late 1929 and early 1930, for example, soon after the great crash, things suddenly began to look up. The stock market rallied sharply. Politicians, Wall Street pundits and the media rushed to proclaim that "the worst was over." And America breathed a great sigh of relief. But it was not over. The real crisis — shutting down the banking system and plunging the globe into the Great Depression — had barely begun. Has Wall Street won? There are obvious parallels, to be sure: Like then, politicians have been running gleeful victory laps, claiming full credit for "ending" the crisis. Like then, Wall Street brokers were quick to agree, urging investors to buy stocks again with both hands. And like in 1930, the media has reported every bout of irrational exuberance with only rare skepticism. But that's where most of the similarities end! * In the 1930s, the United States was one of the world's largest creditor nations. Today, it is the largest DEBTOR nation. * Back then, gold was not traded in the open markets and largely unavailable to individual investors. The only major holders of gold were central banks, who guarded their gold — and their currencies — with great care. Today, individuals all over the world are using gold as their main vehicle for escaping from — or REBELLING against — central banks. * And perhaps most important, in those days, the government did everything in its power to protect the credit and credibility of U.S. Treasury securities. Today, deliberately or not, it seems to be doing everything in its power to undermine them! These are some of the key reasons why we are now facing the greatest sovereign debt crisis in the history of the planet. And over the past three weeks, it has taken on ominous new overtones: Strikes, protests and riots in the streets in Greece ... the very real threat that the crisis will spread like wildfire through Italy, Spain, Portugal and Ireland ... the European Union agreeing to spend $1 trillion to save itself and the euro ... and most notably, our own Federal Reserve agreeing to print MORE U.S. dollars to buy European bonds. Think about what this newest development means for a moment ...After creating hundreds of billions of dollars out of thin air to bail out our own banks, brokers, mortgage companies and automakers ...Not satisfied with the $1.3 trillion it created over the last year to buy bonds in an attempt to keep interest rates low ...The Fed is now committing to create still more paper greenbacks to bail out Europe! These are, indeed the times that try our souls ... Unsurprisingly, investors are watching Washington flood the world with unbacked dollars; Wondering how this explosion of paper money will impact their buying power ... their standard of living ... and their financial security and independence in retirement. So ask yourself the following 5 questions?
Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. |
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