by John R Ing
Two forces collided head-on. Hundreds of people spent more than 30 years looking for the answer. The Higgs boson discovery? No, gold. After experimenting with fiat currencies, this flawed premise has collided with an equally bigger truth: Gold is finite, paper isn’t. Bankers now lie, even governments lie, and politicians always lie. Gold tells the truth. Gold is on the first step towards remonetization. Gold is money, it is a currency. Without gold to bind the system together we believe, like the Higgs boson, the financial universe will fall apart.
With the highest deficits since World War II, Mr. Obama and the Federal Reserve proved particularly adept at printing, borrowing and spending money creating one of the biggest financial bubbles ever. And the implications of the Fed’s promise to keep interest rates ultra-low by extending “Operation Twist” (QEII ½) is a tidal wave of liquidity with money created out of thin air. Since 2008, the Fed expanded its balance sheet by 250 percent with nearly $2 trillion worth of toxic securities. After two rounds of quantitative easing, debt to GDP stands at 100 percent and deficits run at 9 percent GDP. And as in late 2008, the Fed’s decision to keep Maison interest rates artificially low has caused short term stock market volatility, runs on sovereign debts, bank bailouts and a dash for cash.