Thursday, August 25, 2011

Where Are We?

Greg Hunter

Yesterday, the Dow was up more than 300 points, and gold hit another all-time high before dropping nearly $100 an ounce. You would think the stock market was back and the gold trade was over. Wall Street is excited about recent bad economic news that just may force Fed Chief Ben Bernanke to start a third round of Quantitative Easing for the third quarter (QE3). I hate to break it to Wall Street, but QE3 is already underway in the form of 2 years of guaranteed near 0% interest rates.

That’s the close up of the economy. The wide shot reveals something much more profound and dangerous for anyone who does not know which direction the giant economic cruise ship is turning. The problem the world faces today is crushing debt. In America, it is at the local, state and federal level. On top of that, there have been many promises made in the form of retirement and health care. In Europe, the same thing, except there the problem is more immediate and dire. The fate of the European Union hangs in the balance.

What is happening is nothing short of a reevaluation of money, and thus we see gold breaking new all-time highs. In his latest post, Jim Willie of gives this warning to the common man about the perils of holding cash. Willie said, “Prepare to protect your personal wealth during the grandest transfer of wealth in modern history, from toxic paper to reliable hard metal with no counter-party risk. Money is in the process of being invalidated and redefined. The Paradigm Shift continues at work.” So, we are at the edge of a cliff in this grand cycle. It is said, it is not the long fall that can kill you, but the quick stop.


  1. Here’s what’s going on in the real world: I talked to an old friend I haven’t seen in years. She is a retired single woman (like me) with a small house in California. She had something akin to a 401 and said that in the last 10 years, that account disappeared due to three stock market tankings and now she had nothing.

    I consciously do not own stock and didn’t realize there were three crashes that destroyed her savings. Instead of stock, I own “things.” I cannot afford to dabble in gold bars, nor would I ever buy certificates. I do buy second-hand gold and silver whenever I find it at yard sales and flea markets. So I doubt I have to worry about the government trying to confiscate my gold.

    Even so, we are on a fixed income, and price inflation is killing us. Like other seniors, we now have to choose between having a telephone, an internet connection, TV reception, and not using the car. If I was 30 years younger, I would seriously consider joining the anarchists.

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