Gold Editorials & Commentary

In summary, the following analysis/argument concludes that Depression is a far more likely outcome than Hyperinflation.

The mathematics of inflation is as follows:

In my article Growth and Debt: Is There a Trade-off? (www.gold-eagle.com , February 12, 2009) I have stated the "Iron Law of the Burden of Debt": The liquidation value of total debt

Clarifying our depression forecast

I am rebutting (responding) to this article:

Here is my logic:

The past 6 months have been every interesting, as the financial markets try to find a bottom while banks go bankrupt and more and more investment scandals continue to pop up on the radar destroying investor's life savings literally over night.

Gold ran at its highs of last March, before reacting back heavily, as expected and predicted in the last update. The 1-year chart makes very clear why it has reacted back so.

The week was a doozie seeing the major averages head into low ground and signalling more downward movement as the bear market unfolds. We will see a large rally but when is the real question.

GLD - sell signal this week.

SUDDEN SHIFT, FICKLE FOLKS

I've been on the lookout for an article with a concise description of the ongoing saga of the Credit Default Swaps (CDS) markets to pass along to readers and I have found a nice, simple one on the Guardian UK website.

THE AMERICAN FINANCIAL CRISIS

Modern economies were created by the collusion of bankers and government. The banks are now collapsing and only the governments are left. It's like watching a two legged man trying to stand on his one remaining leg.

The economic collapse continues to deepen with no end in sight, just more spending. In general many stocks remain expensive on a historical basis. Gold and silver are soaring as some investors are waking up to the economic reality of today.

Alot of subscribers have been perplexed by the relatively miserable, laggardly performance of Precious Metals stocks in recent days as gold and silver have soared, especially against various major world currencies.

GLD - on buy signal.

PROLOGUE & AFTERMATH

No market goes straight up or straight down.

Gold and silver have had one hell of a run in the recent days. Both looked like they were topping weeks ago but recent bad news hit the wires making investors buy gold like the stock market is about to go under.

It is not often that we Americans have the opportunity to examine the financial experiences of less developed countries and attempt to learn from them.

While I try to keep things positive and always give everyone a chance, it seems as if the new president is not changing anything in regard to spending.

GLD - on buy signal.

A hard time came when deciding upon a title today. "Dead Banks Walking" or "Insolvent & Motionless Yet Standing" or "Much Ado About No Credit" or "The Bank Vampires" or "The Primary Dark Syndicates" made sense.

Watching the stimulus debate is quite unnerving; we are witnessing eloquent politicians and confident bureaucrats that are really clumsy and clueless about the economy ready to do major damage to it.

Back in late 1979, the lineups to buy Gold Coins and Bullion looked more like lineups of people waiting to buy Stanley Cup Hockey tickets at the then Famous Montreal Forum.

Gold and gold equities have performed well over the past two months climbing in value as the broad market drifts sideways waiting for buyers or sellers to step up to the plate.

The Big Fix