The Korelin Economics Report
The Gold Price is Influenced
by Government Statistics
- Comments from Rick Rule,
Jay Taylor, John Williams and John Doody
Al Korelin
www.kereport.com
dispatched Nov 26, 2007
posted Nov 28, 2007
Last week I spent two days
in San Francisco participating in the Hard Assets Investment
Conference at the Marriott Hotel and sponsored by Tim
Wood and the rest of the folks at International Investment Conferences.
This venue gave me the opportunity
to do some great in person radio with folks who are considered
to be experts in our industry.
We conducted a panel consisting
of Rick Rule, John Doody, Jay Taylor and Walter John Williams.
John Williams [Formally known as
Walter J. Williams, "my friends call me John."] is the publisher of a newsletter
called Shadow Government Statistics. He maintains that the statistics
published by the federal government are, not incorrect, but certainly
misleading. He told me that if the investing public looked at
the numbers the same way that he does people would be aware that
our economy is not nearly as healthy as most believe.
John Williams' philosophy
was the subject of the panel discussion.
I asked the panelists two questions.
The first had to do with inflation and the second dealt with
employment.
Williams maintains that inflation
in the U.S. would currently be running at a bit over 12% per
year if the same methods of calculation were used today as were
used in the past. All of the panelists agreed. Rick questioned
the rationale behind excluding energy and food costs in the calculations
when they had both been included in the past. Dr, Doody simply
stated that, "the books are cooked".
Regarding the employment numbers,
Williams asked why people who have given up looking for work
are not included in the figures. The panelists agreed that leaving
this one group out of the equation skews the numbers away from
reality.
We then spent a fair amount
of time discussing the correlation between the price of gold
and silver and the perception of the economic health of the United
States. After hearing what these experts had to say, I am convinced
more than ever that if people viewed the statistics as Williams
and the other panelists do they would be very concerned about
the level of our economic health. This would lead to more investment
demand for gold and silver because of its quality as a store
of value.
I believe that our discussion,
which aired on the Korelin Economics Report Weekly Show, is important
enough that everyone should listen to it. You can do so on www.kereport.com
here:-
segment 3 -- segment
4 -- segment
5 -- segment
6.
I would like to know where
you stand on this issue. You can let me know by responding to
alkorelin@comcast.net.
***
Al Korelin
is the host of the internationally syndicated Korelin Economics
Report. This radio program deals with asset based investing.
Guests appearing on the program provide independent opinions
based on their research. If Mr. Korelin or any of the guests
have a financial interest in any of the companies; which they
discuss, that fact is clearly disclosed to listeners.
Al Korelin
email: alkorelin@comcast.net
website: www.kereport.com
321gold Ltd
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