The United States, under its hostile, arrogant, irresponsible, nearsighted economic leadership, guided by misdirected, unwise, heretical, charlatan financial counsel, fully encouraged in indulgent, thoughtless, undisciplined, indebted lifestyle among the public, has actually thought it could export inflation, import deflation, enjoy the spending largesse afforded by a housing bubble, and expect to get away with the crime against Mother Economic Nature month after month, year after year. The price to be paid will come. It always does. Its form is uncertain. What is so exasperating is that instead of working toward a remedy, we desperately increase pressure on the gas pedal on the financial buggy. A flood of USDollars has entered into the world markets, with no prospect of abatement. The USGovt and USFed have inflated like crazy for ten years running, and now must defend the USDollar. THIS IS CLEAR WEIMAR-LIKE ACTIVITY, LOCKED INTO POLICY MAKING.
My view is that a return to normalcy is poppycock, never to happen! We have gone so far afield, so far from anything recognizable or rectifiable, that normalcy is not even remotely possible in the gold and crude oil markets. The USFed will tighten until they cause a crisis, then deny their role, then clean it up, probably followed by easing of interest rates. The next LTCM fiasco lies around the corner, under the surface, ready to be revealed, sure to wreck havoc. Gold and crude oil will be given a grand assist when it happens, not if. It is guaranteed since the USFed can no longer even define what “neutrality” means in its policy. Besides, what it says usually obscures its actual policy motive. My firm belief is that the Enron model was hatched from the USGovt incubator, where it continues.
Geopolitical tensions are elevated. Even when stable, they constantly remain very high. Gold usually thrives in such an environment. The pendulum of time and financial justice swings. We are on the doorstep to the next grand step down for the USDollar and the next grand step up for gold. Expect all hell to break loose when it becomes increasingly clear that the USFed is a blink away from the end of its tightening cycle. That is all that supports the USDollar, held by the tenterhooks of rising interest rates.
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