Gold, Gold, Gold

Gold has started to rocket once more. It hit $1340 yesterday.

So my prediction has come good. I’m happy for those readers that sold their assets and houses and bought gold, the property market is unlikely to ever recover.

The gold market is driven higher by the prospect of QE (quantitative easing). For the uninitiated, QE is the act of governments that are broke, like Japan’s, printing or creating massive amounts of new money out of thin air.

When the Federal Reserve in the US creates a few trillion new dollars to bail out the banks say, the old dollars previously in existence become less valuable. That’s why the US dollar is under pressure. It has fallen 10% recently.

Money is power to politicians, so cutting spending is unattractive to the political ego-soul, and they’ve milked the citizens for every cent they can. So, there’s not much blood left in that stone. Printing/creating new money is a cheap and easy alternative.

A global currency war has developed, as each country tries to debase its currency to make its exports cheaper; while paying off the national debt and lubricating their various stock markets. That’s why Wall Street is rocketing up. It’s awash with cheap money. The Feds lend to banks at a rate between 0% and ¼%.

(see Wall Street article HERE)

Don’t buy gold to make money short term, as it can go down from time-to-time, when profit taking kicks in. Hold it long term for the next threshold, which is $1650, expected by Jan 2011, or hold for $5000, expected in a couple of years time, when the QE system has farted itself into outer space and oblivion looms, as trillions upon trillions are gorged out of nowhere and the Euro has collapsed due to lies and its members’ sovereign debt.

Fifteen years ago, I wrote in my books of the coming collapse of the global-ego, it’s the fall of importance and control, and that is what we are watching now, as systems unravel bit-by-bit. (SW)