Monday, July 25, 2011

Bread and Circus

Every politician wants to stamp a debt deal as theirs.  There is nothing new about this bureaucracy.  Politicians are attention hogs, and nothing more.  It looks like Obama will stamp Reid's plan.

Any plan is a show for no one.  No plan solves the crisis.  The crisis is that the current fiat standard is not sound.  There really is no other problem; all problems stem from this one problem.  The only solution, and it will solve it eventually, is to have gold back debt like it did in the past.

Because of this, precious metals have risen steadily since the problems hit the apex point that is peak resource.   Now the problem is at  the crux of world issues.  Debt needs to be backed by gold to pay for the resources.  This is a fact.

Short term, I still want precious metals to test their support and then move up to where they are now.  I want to confirm the new level.  This is a conservative view, but being conservative in the short term is the best way to trade for someone long PMs.  Long term, the metals will continue to rise and rise.

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