Gold – Interest Rates – Rally
QUESTION: Will higher interest rates hurt gold if they reflect demand for money and inflation?
ANSWER: Analysts have said that higher interest rates would have hurt gold because it doesn’t pay interest, making it a less attractive investment. This just does not stack up. Rates rose into 1981 and gold rose into 1980. The exponential rise in rates made it insane for all investments. My mother even went out back then and bought 10 year CDs at about 20% return. Then everything was impacted for no investment, not even stocks, could compare to the high yield on US debt at that time.
So rates really are a bell curve relative to gold. Higher rates will be BULLISH for then demand will rise with the perception of inflation. But keep in mind that this time it is a Sovereign Debt Crisis so rates will rise as assets prefer to shift to private investment and away from government debt. This will mean rising rates will not stop the capital flight for rates will rise BECAUSE of the capital flight.
Gold is rallying to test the first key Bullish Reversal at 1187. This is what these number do. That showed how far gold must rally to even get bullish on a sustainable basis. This is the Panic Cycle Target. We have a Directional Change Next week. We need a weekly closing above 1210 and a monthly closing above 1225 to show any sustainability here and now.
A British Reporter Gets Mad & Tells the Real News
Comedian Jonathan Pie plays a reporter who grows increasingly mad at
his boss for telling him what to report through an earpiece. Pie loses
it after his boss tells him to stop complaining and report the “F__KING NEWS”. If
you have a problem with that sort of frank language, do not listen to
this one. It would be really funny to watch this happen in real life.
Silver Rally & Gold Decline?
QUESTION: Mr. Armstrong; there are claims that silver is in short supply and since the prices are low that proves it is a manipulation. This seems to be the same constant theme to sell metals yet at the same time they are saying it is manipulated so why bother? Can you shed any light on these assertions?
Thank you for your honesty
KL
ANSWER: There
is no truth to these claims. When a commodity is moving opposite of its
sector, then there is something to look at. These same people told
everyone to buy silver for it was heading to $100 back in 1998. They
claimed a fake shortage because the manipulators simply moved silver
from NY to London. It is always the same scheme.
Just
look at these two charts. Gold was declining into early 1998 when
silver was rallying. This was the Buffet involvement; the big players
all knew this was rigged. The profits always rely on manipulating to the
upside, not to suppress a market indefinitely to keep it down. Where is
the profit to just suppress a market? There is none. Those who
manipulate markets are in and out. They are looking for instant profits,
not 20 years down the road.
Silver
was rallying and gold was declining. That was a clear sign that
something was wrong. Today, all commodities are under pressure. This is a
commodity deflation. Demand has been on the decline no matter what they
claim. So this is a sector move and nothing is out of the normal. It
will turn when the time is right, but they are trying to make a living by selling to you every day.
Gold Standard Nonsense Compelling Us To Repeat History
“The system is collapsing. It is not because of some derivatives bubble. It is not because of fiat. This is because of the debt gone wild”
Sure! And you don’t see the connection with the lack of a gold standard?
This would never have happened during a gold standard, without someone having gone out of business. Honest money =gold
I think that much should be clear by now.
kind regards
gk
REPLY: The degree of people indoctrinated with gold propaganda is the greatest threat we have to solving any crisis or advancing in society. They constantly regurgitate this nonsense without any factual proof, relying completely on made up sophistry. We had Bretton Woods that was a gold standard, which collapsed because they tried to peg gold at $35 yet increased the supply of dollars. So where did gold prevent anything?
ANYONE who believes this nonsense that a gold standard will miraculously convert politicians into saints should really just check yourself into an insane asylum. Long before there was paper money, there has always been debt. People borrowed and still had the same leverage on gold for there was more debt owed in gold than there was ever gold.
This rhetoric seriously prevents us from observing a simple fact: there was debt under a gold standard and every gold standard throughout history has collapsed. NOT A SINGLE gold standard ever survived. You just do not understand history. It is the politicians who blow it up, regardless of what you call money.
As long as you argue for this nonsense, we will never advance as a society. If you really believe in returning to a gold standard, which has never worked in history, you will condemn your children the same financial chaos time and time again.
A gold standard would never prevent a debt crisis for money is always LEVERAGED in debt. If you deposit $100 the bank will lend that out to someone else, and two accounts will show $100 when there is only $100 in actual money. It does not matter if that $100 is gold coin, soybeans, cattle, or paper.
If you do not understand the system, you should just hang it up for your solutions will condemn the rest of us to watch you repeat history.
Australia’s New PM: Ex-CEO of Goldman Sachs
Australia’s new Prime Minister Malcolm Bligh Turnbull was managing
director of Goldman Sachs Australia (1997–2001) and a partner with
Goldman Sachs and Co. (1998–2001). In May 2002, Turnbull appeared before
the Insurance Commission and was questioned on Goldman Sachs’s
involvement in the possible privatization of one of the acquisitions of
the collapsed insurance company.
So
while people make up wild conspiracies about Rockefellers and
Rothschilds, they seem to be doing that to keep the focus away from
Goldman Sachs.
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