“The Federal Reserve System is nothing more or less than a banking cartel” says G. Edward Griffin, author of The Creature From Jekyll Island, in this excellent clip from a recent Casey Research Conference. He’s right. Prior to the passing of the Federal Reserve Act in 1913, US banks still operated under the fraudulent system
With the price of gold climbing, we are once again starting to hear the clarion cries warning us of a gold bubble. But how does one objectively evaluate that claim? The first step is to understand what a bubble means. A bubble occurs when there is a large disconnect between something’s price and its worth.
Because of announced central bank money creation programs, at the retail level gold and silver buying is at a solid pace, not at a frenetic pace, which is good, as frenetic buying usually suggests a top. Based on what we’re seeing at CMI Gold & Silver, precious metals prices seem poised to go higher.
No sooner had word leaked that the GOP was considering a plank in its 2012 platform calling for a gold commission to study the viability of returning to a gold standard, did CPM Group— long known for its anti-gold positions— issue a commentary ridiculing the gold standard. I disagree with nearly all positions in the commentary.
A couple of weeks ago I pointed out that the Accumulation Distribution Line (ADL) for silver was showing significant upward pressure on the price of silver. Below you can see that we have the same situation in gold.
Supposedly seeking to placate Ron Paul’s supporters, the GOP strategists have included in the party’s 2012 platform’s first draft a call for a “gold commission,” which would investigate again linking the dollar to gold. Linking the dollar to gold would limit—if adhered to, which has proven to be a problem for politicians—the number of dollars that the government/Fed could create. The Establishment sees the idea as dead on arrival.
There’s an interesting interview with Marshall Auerback of Pinetree Captial Management posted over on Mineweb.com. It’s interesting not because of any particular subject matter, but rather the complete contradictions presented therein. The first half consists of a well-reasoned case for owning gold and why it is being remonetized in an overextended financial system. By contrast, the second half is a fallacy laden justification of many of the failed policies that are driving people to own gold.
In 2011, while Michelle Obama was encouraging Americans to grow gardens to improve their health and finances, another first lady, Leila Trabelsi of Tunisia, was taking a healthy chunk out of Tunisia’s financial reserves.
In 1971, the dollar was officially relieved of its false promise of gold convertibility by creditors to the United States. In an attempt to spare the world’s economies from the effects of creative destruction, free markets and the invisible hand were traded in for centrally planned economies. Instead of market participants determining who succeeded and failed, that task increasingly became the domain of academicians, central bankers and politicians.
In addition to the classic reverse head and shoulders pattern forming in silver, there is another very interesting bullish indicator currently. But first, credit to where credit is due. This is not my observation, but that of poster SRSrocco over on the TFMetals boards.