I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
~ Thomas Jefferson ~
As
the weekly chart of gold futures illustrates below, gold has recently
pulled back sharply and has broken out. I will likely be looking for any
pullbacks in gold as buying opportunities as long as support holds.
Gold Weekly Chart
In closing, for longer term investors the stock
market might have some serious short term juice as cheap money and
artificially low interest rates should juice returns. However,
eventually equities will start to underperform. At that point, gold will
be in the final stages of its bubble and the term parabolic could
likely be applied.
If central banks around the world continue to print money there are
only a few places to hide. Precious metals and other commodities like
oil will vastly outperform stocks in the long run if the Dollar
continues to slide. The real question we should be asking is who will
win the race to debase, Draghi or Bernanke?
January 30th, 2012 at 12:24 pm
By: Chris Vermeulen – Free Weekly ETF Reports & Analysis: www.GoldAndOilGuy.com
Co-Author: JW Jones – Free Weekly Options Reports & Analysis: www.Optionnacci.com
Co-Author: JW Jones – Free Weekly Options Reports & Analysis: www.Optionnacci.com
Tun Mahathir comments on printing more money to recover economic problems.
The
Governor of the Bank of England has advised printing money to overcome
Britain’s financial crisis. This is a great idea. When you lose money
just print money to make up for the losses. The United States had
printed 300 billion USD to bail out banks and overcome the crisis. Of
course if Malaysia had printed Ringgits to pay off debts during the
financial crisis we would be soundly condemned. No one would accept our
Ringgit and we would be bankrupted. But rich countries apparently can
print money to pay debts.