Thoughtful Preparations: Media Spin Blog

A friend who watches precious metals carefully, e-mailed me some warnings about the U.S. economy, as reflected in the rising price of gold, not to mention black gold:

“That gold is above $450 for many days is significant. That was a level that the NY manipulating banks working with the Federal Reserve were able to hold for a long time. Anyone who thought that Greenspan would not raise rates when this major mechanism failed was knaive of hearts and mines.

The whole world is watching as the US flounders in muck like a banana republic, and its president talks about spending vast unexpected sums in addition to huge current debt like a drug addict digging into the home equity line.”

A similar sentiment is expressed at The Binary Circumstance, banner sub-titled, “Things either exist or they don’t”:

“The Bush administration and the Republican Congress do not raise taxes or veto any spending bills which means the only way to pay off the debt is for the government to counterfeit more money.

I think I can hear them starting up those printing presses now.

That means inflation.

Inflation is a hidden tax on wages, savings and the value of the U.S. currency which all decline in relation to hard assets like real estate and gold.”

Here is an interesting article about silver and metal prices by “the Optimist.” He predicts the price of silver will explode.

“For all those readers who have slept through the last week, the Optimist is excited to tell you that the price of gold has surged to $460, its highest price in almost two decades. Speaking of sleeping, however, the price of silver has been disappointingly dull compared to gold. Although everyone knows that silver will more than double from its current price of $7.20, and will eventually multiply by a factor with one or more zeros (i.e., 10, or 100, or 1,000, etc.), the key question everyone asks is when the explosion will happen.”

In a further reality check, the market analysis blog Rampant Speculations’ banner includes a great quote from sci-fi writer Philip K. Dick, “Reality is that which, when you stop believing in it, doesn’t go away.” His article warns,

“The strength in gold and the weakness in high yield bonds of late cannot be good news for the finance based US economy.”

That about sums it up. The only logic I can see behind our leadership in U.S. government is that they prefer fewer rich elite people to compete with.

For historic gold price information, see charts at the Gold Information Network.