gold, page-132806

Hi Bell
Yeah the Japanese are in all sorts of trouble. Calling this Bond thing a market is a serious misnomer. It is without a shadow of a doubt a Ponzi, pure and simple. The only question is, when does it blow up????
Whether the Japanese are the first to default or the Europeans it doesn't really matter, (unless you are part of these markets) the important thing to understand is that it will be a contagious event meaning a likely seizure of the system in more ways than one. Anybody with significant capital in Banks of the default countries jurisdiction will be at risk of Bail ins as has already been seen in Cyprus, Greece and the US last year where Bank depositors were paid out the government guaranteed amount and lost anything above that as it was confiscated. The problem with a full blown credit seizure is that depositors will likely be Bailed in for the full amount and given worthless Bank Bonds or shares because there won't be anyway near the money in the kitty to bail out the entire populace. Government defaults are an absolute certainty.
Precious metals are the only real answer when it comes to money. The governments have distorted the system so much that it is now failing in front of our eye's and government money buys less and less and going digital won't make any difference. It may well accelerate the coming destruction.
The gold price correction at the moment is simply just that. It will shortly run its course and then reverse higher because there is no real alternative and it has no counter party risk, unlike government paper.
If you look at the big Fund Managers when it come to gold all they've ever done is look at the price action and so they think that gold will perform as it has in the past. They have absolutely no idea why gold is outperforming its "historical norm". They are completely clueless about the mechanics and the integrals of the gold game. To any serious Gold Bug its blindingly obvious why gold is now on its way to real price discovery.
Cheers.