Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19
Gold Price Gann Angle Update - 10th July 19
Crude Oil Prices and the 2019 Hurricane Season - 10th July 19
Can Gold Recover from Friday’s Strong Payrolls Hit? - 10th July 19
Netflix’s Worst Nightmare Has Come True - 10th July 19
LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now! - 10th July 19
US Dollar Strength Will Drive Markets Higher - 10th July 19
Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis - 10th July 19
Stock Market SPX 3000 Dream is Pushed Away: Pullback of 5-10% is Coming - 10th July 19
July 2019 GBPUSD Market Update and Outlook - 10th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Where Silver Trumps Government Central Planning

Commodities / Gold and Silver 2012 Jun 11, 2012 - 08:21 AM GMT

By: Dr_Jeff_Lewis

Commodities

The current worldwide political landscape is full of examples where the politics and economy connect. 

In fact, economic policy is largely driven by politics in most countries around the globe.


The European Union Replaces Democratic Leaders With Technocrats

In the European Union, technocratic leaders are gradually replacing those who have been democratically elected.

This sets up a “Which came first, the chicken or the egg?” situation in terms of EU monetary union versus a considerably more challenging objective of an integrated European cultural union.

One step toward a more unified Europe would be the imposition of centralized monetary policy on the currently economic union of culturally diverse nation states. Once again, altering nature proves challenging, if not futile.

Election Year in the United States Drives Monetary Policy

A major factor in the economic landscape of the United States this year is the upcoming U.S. presidential election in November.  The election year mentality is often considered a driving force behind monetary policy as the key election date approaches.

Interestingly, the vast majority of energy and resources at the Federal Reserve’s FOMC monetary policy meetings seem to be directed toward an essentially political message.

Politics has a remarkable tendency to morph into a situation that ultimately serves the politicos and their puppet masters who work behind the scenes. Political objectives are usually facilitated and politicians influenced via substantial campaign contributions. This provides wealthy people and large corporations with the means of corrupting a political candidate to serve their purposes.

This political connection helps explain how monetary policy and planning have become so utterly disconnected from common sense.

Quantitative Easing Debases Paper Currencies and Makes Silver Attractive

The people of the developed countries — such as the United States, Japan and Britain — that have engaged in huge quantitative easing programs in the wake of the post-2008 global recession are now simply awaiting more money printing in the hopes that it will improve their respective economies.

Yet more and more QE is needed since each round of easing has a diminishing return in terms of the economic stimulus it provides. Of course, this policy also leads to the debasement of the domestic paper currency relative to hard currencies.

Investors are therefore forced to seek alternatives to paper currency to store their wealth for the future. Unfortunately, most of the alternatives are bets, rather than sound investments.

In this challenging investment environment, silver has become, in the words that Kyle Bass made famous, every man's bet against the stupidity of central planning.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

    Copyright © 2012 Dr. Jeff Lewis- 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.


© 2005-2019 http://www.MarketOracle.co.uk - 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