Wednesday, April 20, 2011

Gold and Gold-wannabes

All that glistens is not gold, but gold will lead the change and charge...

The financial crisis, the dollar weakness, massive debts
The collapse of the West; Portugal, Italy, Iceland, Greece, Spain...
Small and smaller banks collapsed like flies dropping dead in flights
Big banks that are 'too big to fail' were rescued at taxpayers expense

What confidence and faith can the World at large depend on?
Who can the World relies on for leadership and avoid financial disharmony and collapsed?
Who rates the rating agencies that grade others?

China is the poor nation with more than 3trillion dollars in reserves
USA is the rich nation deep in debts
Europe rich is supporting her decadent, dependent fellow-countrymen

Aboveall, the World is flooded with liquidity and hot money

Is money the answer; if yes, whose money is worth their value on paper?

GOLD

When all else fails, GOLD will shine

Watch a new era unfolds...

Inflation will fan prices of properties, commodities and the general class of assets when real value of money losses its shine

Only social disharmony and disturbances can, and will, cure the ills of inflation; the political-will to tame inflation is lacking.
A short-term sharp spike in prices will create gapping spread between the Rich and Poor, the 'Haves' and the 'Have-nots'.
A hungry man is an angry man
A hungry, riotous crowd will forcefully shift prices sharply higher, then lowered after the chaotic hiatus

Gold triumphs in chaos
When PEACE returns, prices will collapsed to more earthly level

Ride the cycles...

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