wow, that was the best read I have spent time on in years; with all my interest in this current gold/dollar/qe/recovery ballet - it really validates a lot of my thinking
today I was thinking Bernanke is not an idiot... he cant be... this article explains so, so much what has been done and why and what will be done
it even explains how the qe does not enter the economy, but only fills the banks black holes; and it gives the methods of draining... but to employ any method the one key that must occur is a strong economic recovery... then the money is drained back... and bob's your uncle... no hyper inflation necessary
I love Jim's idea to buy gold in the ground (miners) as that has the most leverage and risk... of course, that makes sense
and the most scarey of all is his statement that if the RIGHT THING was done (ala Ron Paul, Peter Schiff) the economic explosion would be felt on Mars and the depression would be much, much worse then the great depression
I am hopeful of his known govt outcome re gold... a range of 1700 to 2100 later half of the year; he states very clearly the govts (and this stabilty fund) will NOT LET IT SKYROCKET; that is OK by me; I do not want economic armegeddon
Skol, by the way, if you read this, you will see what has happened in markets does not indicate health, it indicates the FEDs making happen what it must do to prevent armageddon
finally I love the new school of economics called PERSPECTIVE; it is up to govt and feds to make people THINK all is OK, then they will spend and grow and all may end up OK... what an amazing play of poker bluff
will it work... well, it has bluffed Skol... and as Jim says this is not time to be RIGHT, this is not a time to do the RIGHT thing
to me this is too scarey to be on the bluff side; I dont trust banks, economies or markets; I can only think to be in gold miners or cash... as I have stated... if armageddon comes - with huge deflation, then some cash will be needed
if you read this closely, gold CANNOT go up (Jim's correct valuation method that worked in the 1980s says gold should be $12,000; but it will not be allowed to get there... and he knows and accepts that)
I honestly now hope Benny can pull this off; I just want gold to grind up slowly forever; I dont want armageddon
