Saturday, September 3, 2011

It's September

Anyone familiar with this blog knows I thought, and still think, the big move in precious metals will happen this fall and winter.  I still believe that, even with gold's 10% plus move this summer.  Gold leverages the system, and the system is failing.  The leverage will have to be proportionally increased and with finance falling apart, gold is the only thing that will keep it together.

I think gold will need to rise a few hundred dollars every month to keep the numbers where they are now.  Interest rates want to rise and holding them back is inorganic.  Equity wants to drop and holding it up will kill fiat.  Killing fiat kills the ponzi.

Yet, this is what needs to happen to continue the front of recovery.  Obama's Job Program will do nothing but spend money short term and will not fuel growth.  The banks are failing because their balance sheets are underwater.  Economics still thinks that spending money now and paying for it later is the answer to create growth; there is nothing further from the truth when there is no revenue stream.

The river of growth has dried up due to poor irrigation techniques.  We are now stranded in the desert of the real.  There is nothing saving finance, except higher gold prices, since it is the gold loaned out by Central Banks that is their only performing assets.

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