It is astounding how many economists, government officials, and Wall Street strategists construe the current economic conditions as evidence of a bona fide recovery. It is a testament to the power of the rose colored glasses handed out by our nation’s leading universities that such a feeling could be widely held despite the clear and present danger that compounds daily. The myopia leads us to enact policies that actually exacerbate our problems. The “remedies” are postponing, perhaps indefinitely, a true recovery…
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With a rough economic road ahead, U.S. stock investors are nervously asking themselves: Should I stay or should I gold?
Gold has long been touted as the ultimate hedge against hard times. They don’t call it the gold standard for nothing; central banks the world over stockpile the stuff to defend the value of their currencies.
Historically, gold prices rise when currency values and interest rates fall. Gold has been on a seven-year rally that has seen it rise precipitously out of back-to-back price slumps at $255 an ounce in 1999 and 2001 to early 2008 peaks of more than $900…
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The large-scale government intervention in the economy is going to end badly.
Any number of pundits claim that we have now passed the worst of the recession. Green shoots of recovery are supposedly popping up all around the country, and the economy is expected to resume growing soon at an annual rate of 3% to 4%. Many of these are the same people who insisted that the economy would continue growing last year, even while it was clear that we were already in the beginning stages of a recession…
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Worries about skyrocketing inflation are sparking record-breaking price increases for gold, pushing the precious metal to a closing price north of $1,500 an ounce for the first time.
The combination of mounting budget deficits in the U.S., rising debt levels in Europe, a weakening U.S. dollar and the risk of global inflation create a dream environment for gold, which tends to rise in price when faith in paper currencies flags…
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