Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
FED Balance Sheet Current State - 5th Mar 21
The Global Vaccine Race Against Time and Variants - 5th Mar 21
US Treasury Yields Rally May Trigger A Crazy Ivan Event (Again) In Stock Market - 5th Mar 21
After Gold’s Slide, What Happens to Miners? - 5th Mar 21
Racism Pandemic Why UK Black and Asians NOT Getting Vaccinated - NHS Covid-19 BAME - 5th Mar 21
Get Ready for Inflation Mega-trend to Surge 2021 - 4th Mar 21
Stocks, Gold – Rebound or Dead Cat Bounce? - 4th Mar 21
The Top Technologies That Are Transforming the Casino Industry - 4th Mar 21
How to Get RICH Crypto Mining Bitcoin, Ethereum With NiceHash - 4th Mar 21
Coronavirus Pandemic Vaccines Indicator Current State - 3rd Mar 21
AI Tech Stocks Investing 2021 Buy Ratings, Levels and Valuations Explained - 3rd Mar 21
Stock Market Bull Trend in Jeopardy - 3rd Mar 21
New Global Reserve Currency? - 3rd Mar 21
Gold To Monetary Base Ratio Says No Hyperinflation - 3rd Mar 21
US Fed Grilled about Its Unsound Currency, Digital Currency Schemes - 3rd Mar 21
The Case Against Inflation - 3rd Mar 21
How to Start Crypto Mining Bitcoins, Ethereum with Your Desktop PC, Laptop with NiceHash - 3rd Mar 21
AI Tech Stocks Investing Portfolio Buying Levels and Valuations 2021 Explained - 2nd Mar 21
There’s A “Chip” Shortage: And TSMC Holds All The Cards - 2nd Mar 21
Why now might be a good time to buy gold and gold juniors - 2nd Mar 21
Silver Is Close To Something Big - 2nd Mar 21
Bitcoin: Let's Put 2 Heart-Pounding Price Drops into Perspective - 2nd Mar 21
Gold Stocks Spring Rally 2021 - 2nd Mar 21
US Housing Market Trend Forecast 2021 - 2nd Mar 21
Covid-19 Vaccinations US House Prices Trend Indicator 2021 - 2nd Mar 21
How blockchain technology will change the online casino - 2nd Mar 21
How Much PC RAM Memory is Good in 2021, 16gb, 32gb or 64gb? - 2nd Mar 21
US Housing Market House Prices Momentum Analysis - 26th Feb 21
FOMC Minutes Disappoint Gold Bulls - 26th Feb 21
Kiss of Life for Gold - 26th Feb 21
Congress May Increase The Moral Hazard Building In The Stock Market - 26th Feb 21
The “Oil Of The Future” Is Set To Soar In 2021 - 26th Feb 21
The Everything Stock Market Rally Continues - 25th Feb 21
Vaccine inequality: A new beginning or another missed opportunity? - 25th Feb 21
What's Next Move For Silver, Gold? Follow US Treasuries and Commodities To Find Out - 25th Feb 21
Warren Buffett Buys a Copper Stock! - 25th Feb 21
Work From Home Inflationary US House Prices BOOM! - 25th Feb 21
Man Takes First Steps Towards Colonising Mars - Nasa Perseverance Rover in Jezero Crater - 25th Feb 21
Musk, Bezos And Cook Are Rushing To Lock In New Lithium Supply - 25th Feb 21
US Debt and Yield Curve (Spread between 2 year and 10 year US bonds) - 24th Feb 21
Should You Buy a Landrover Discovery Sport in 2021? - 24th Feb 21
US Housing Market 2021 and the Inflation Mega-trend - QE4EVER! - 24th Feb 21
M&A Most Commonly Used Software - 24th Feb 21
Is More Stock Market Correction Needed? - 24th Feb 21
VUZE XR Camera 180 3D VR Example Footage Video Image quality - 24th Feb 21
How to Protect Your Positions From A Stock Market Sell-Off Using Options - 24th Feb 21
Why Isn’t Retail Demand for Silver Pushing Up Prices? - 24th Feb 21
2 Stocks That Could Win Big In The Trillion Dollar Battery War - 24th Feb 21
US Economic Trends - GDP, Inflation and Unemployment Impact on House Prices 2021 - 23rd Feb 21
Why the Sky Is Not Falling in Precious Metals - 23rd Feb 21
7 Things Every Businessman Should Know - 23rd Feb 21
For Stocks, has the “Rational Bubble” Popped? - 23rd Feb 21
Will Biden Overheat the Economy and Gold? - 23rd Feb 21
Precious Metals Under Seige? - 23rd Feb 21
US House Prices Trend Forecast Review - 23rd Feb 21
Lithium Prices Soar As Tesla, Apple And Google Fight For Supply - 23rd Feb 21
Stock Markets Discounting Post Covid Economic Boom - 22nd Feb 21
Economics Is Why Vaccination Is So Hard - 22nd Feb 21
Pivotal Session In Stocks Bull Bear Battle - 22nd Feb 21
Gold’s Downtrend: Is This Just the Beginning? - 22nd Feb 21
The Most Exciting Commodities Play Of 2021? - 22nd Feb 21
How to Test NEW and Used GPU, and Benchmark to Make sure it is Working Properly - 22nd Feb 21
US House Prices Vaccinations Indicator - 21st Feb 21
S&P 500 Correction – No Need to Hold Onto Your Hat - 21st Feb 21
Gold Setting Up Major Bottom So Could We See A Breakout Rally Begin Soon? - 21st Feb 21
Owning Real Assets Amid Surreal Financial Markets - 21st Feb 21
Great Investment Ideas For 2021 - 21st Feb 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold Price Sizzles As the U.S. Economy Fizzles

Commodities / Gold and Silver 2010 Jun 29, 2010 - 11:29 AM GMT

By: Lorimer_Wilson


Best Financial Markets Analysis ArticleChris Blasi writes: The straight-faced dissemination of transparently amateurish "official analysis" these days loudly proclaiming that an economic rebound is underway is so blatantly short on truth that it reveals a disturbing level of desperation to raise confidence.

Furthermore, it clearly shows that the damage to the national economic infrastructure is so great that the practices deployed by the Federal Reserve and the Obama Administration to goose the economy to revival were futile at best and most likely counterproductive.

No healthy and sustainable growth seen on the horizon
Only the generation of millions of private sector jobs producing a legitimately saleable product or service is a reliable indicator to herald real recovery.  Unfortunately, the country foolishly embraced an economic model based on consumption over production. As such, there will be no healthy and sustainable growth until the populace somehow improves its personal cash flow, pays down previous consumption, builds some savings, and re-establishes a manageable line of credit.  That said, parsing through all the official gibberish about the "V" shaped recovery, however, I can find no irrefutable data to confirm that such confidence-building job generation is, in fact, developing.

We have a heavy price to pay on the long journey down
The economy may appear to have stabilized but this is a brief respite on a long journey down.  The trillions of stimulus, nationalization of GM, etc. should have halted the slide and jump-started the economy but, instead, such action has just provided a short intermission - with a heavy price to be paid down the road.  All that has really been accomplished is the official establishment of trillion plus dollar deficits going forward, with no end in sight.  This recurring annual budget shortfall is actually modest in comparison to the multi-trillions needed for unfunded entitlements, Obama-care, debt servicing, and the legions of upcoming bailouts for state governments and union pensions.

Potential remedies are being politicized (and weakened) to our detriment.
Of course, a crisis demands governmental action.  True to form, those that thirst for power seized on the perverse opportunity they helped create and are grinding out legislation that does nothing to honestly curtail future abuses. Instead, it burdens the innocent and productive sectors of society with oppressive, intrusive and damaging regulation. Unfortunately, there has not been one iota of legislation by government - or dollar spent - in response to this crisis that has not been politicized.  Consequently, the economic, regulatory and judicial distortions associated with heavy and far-reaching governmental intervention guarantees an ever diminishing standard of living.

One dim bulb and one bright spot for financial refuge
In a speech earlier this month Ben Bernanke treated us to a demonstration of his understanding of money as one beholden to the fiat monetary system.  A couple of his pearls of ‘wisdom’ were as follows:

“Other commodity prices have fallen recently quite severely, including oil prices and food prices… So gold is out there doing something different from the rest of the commodity group.”

"I don't fully understand the movements in the gold price, but I do think that there's a great deal of uncertainty and anxiety in financial markets right now."

No Ben, gold is NOT so much a consumable commodity as it is a monetary metal and, yes Ben, there IS a lot of anxiety in the financial markets.  Net, net, there is too much limitless paper and not enough finite gold, ergo the falling value of paper currency to gold.

That simple exercise in cause and effect could have saved the Pride of Princeton the embarrassment of appearing visibly perplexed about the basic tenets of money.  What do they teach in Ivy League economics?

However, contrary to Ben's befuddlement, there is clear and unambiguous precedent for coping with the demise of a paper-based, and thoroughly abused, monetary system.  While the options for financial refuge in such an imploding economic and monetary environment are few, historically, gold has served in this role and appears to be asserting itself once again.  This can be witnessed playing out across the globe in all major currencies.

Gold to ascend to much greater heights
Talk of a gold bubble is coming again from clueless conformists who made the same kind of assertions when gold broke $400 an ounce but it is just talk.  Except for its justifiable 4X price rise over the previous decade, there is no evidence of any typical bubble characteristics being attached to gold as yet. 

Unlike the behavior of "investors" in the and real estate manias, the masses are not running out to buy gold at any price.  Indeed, if you talk about investing in physical gold bullion at a cocktail party, you can still count on being subject to ridicule. For contrarians, such an environment is ideal.

The stage is slowly being set, aside from the occasional periodic normal price pullback, for gold to ascend to much greater heights.

Got gold!

Chris Blasi is President of Neptune Global Holdings LLC ( and a guest contributor to both (F.A.S.T.) and (Money, Monnee, Munknee!) and an economic analyst and financial writer. He is also a frequent contributor to this site and can be reached at"

© 2010 Copyright Lorimer Wilson- All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Lorimer Wilson Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules