![]() ![]() ![]() |
|||
Gold Is About to SoarPaul Learton Do you own gold yet? As I'm sure you're aware, starting in July 2007, the financial markets entered one of the most severe crises in history. In response to this, the Feds (Federal Reserve, Treasury Department, etc.) have tried to prop up the financial system with numerous interventions. A brief recap of their moves are as follows:
And that's a BRIEF recap. All of these moves fall under one basic category: loose money. And of course, it was loose money (easy access to credit) that got us into this mess in the first place. Former Fed Chairman, Alan Greenspan kept the printing presses rolling and interest rates below the rate of inflation, resulting in one of the largest debt bubbles in history. His successor, Ben Bernanke, is not trying to fix that debt bubble by issuing more debt. All he's doing is cooking up an inflationary holocaust that will erase 401ks, savings, IRAs and the like. Don't believe me? Have a look at the Federal Reserve's Adjusted Monetary Base: ![]() To give this chart some perspective, in Feb. 2008, the Federal Reserve pumped $30 billion into the financial system to prop up Bear Stearns. Compared to the Fed's printing orgy of the last 8+ months, that $30 billion is now a microscopic bump (see the slight ripple above "2008-02" on the chart above). Put another way, the Fed is pumping its brains out, having more than doubled the US monetary base in the last two years. Most worrisome is the fact that the Fed recently starting running the printing presses overtime AGAIN in March '09 even though they claim the economy and financial markets are improving. They're lying. Things are not getting better. If they were, the Feds wouldn't be running the printing presses both night and day. No, the financial markets are heading for another crisis. And with the Feds feeding the debt bubble with trillions of dollars, one thing is certain: BIG inflation is coming. At some point (it may have already started), the money printing and bailouts will result in a horrific wave of inflation similar to the one this country saw in the early '80s. No central bank in the history of mankind has ever been able to print money ad nauseum without devaluing its currency. And the US central bank is currently producing TRILLIONS of dollars to aid their friends on Wall Street. So it's no surprise that the smart money (investing legends like Jim Rogers, David Winters, and even Warren Buffett) have been preparing in advance buying inflation hedges and companies that profit during periods of high inflation. And nothing protects against inflation like GOLD. You know what to do. Paul
Learton Paul Learton: Paul is Chief Investment Strategist for OmniSans Research, an independent financial research firm based in Charlottesville, VA. Paul focuses exclusively on timing major trends between asset classes and financial markets. He's not looking for temporary bottoms or momentum plays, rather, he's looking for seismic shifts in capital flows and consumer behavior, measuring profits and market moves in terms of years if not decades. Paul's long-term horizon and voluminous knowledge of historic trends and economic data shape all of OmniSans Research's investment strategies. Previously Paul worked as a wealth manager for several private clients. |