Why Have Gold and Silver Fallen?
Here is an explanation from Gary North. He believes in the Austrian School of Economics and is featured regularly on www.LewRockwell.com
"I was convinced on March 18 that the recession caused by the Federal Reserve's relatively tight money policy would lead to a fall in the price of all commodities, especially the precious metals. I believed that the commodity market was the last of the bubble markets. The real estate market popped in 2006, and had continued downward. I was convinced that the last market of Greenspan's bubble economy was the commodities market.
In July, the commodities market did begin to fall. I think this publicly marked the end of the commodity bubble.
You will no doubt see lots of reports on this or that indicator that shows that the correction in gold and silver and platinum and palladium and copper and zinc and all the other metals is temporary. I don't think it is temporary. "
The full article can be found here…
please remember.... silver
please remember.... silver and gold are not commodities... they are true money!
as for me and my home, we shall worship the LORD
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
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and Gary North was absolutly
and Gary North was absolutly sure we were going to be living in the stone age because of y2k too!
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
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it seems to make, although
it seems to make, although the banks have been borrowing from the Fed in record amounts the past couple of weeks. Wouldn't that newly borrowed money added as new money and increase the money supply thus inflation???
Here is why
Here is why he is expecting deflation…
"This is incredible. With all talk about the FED inflating in order to reduce the FedFunds rate, in fact it has sold T-bills and other assets, net, thereby reducing the monetary base.
Why is the FED deflating? There is no public explanation. I don't think the general investing public knows that the FED is deflating. So, the FED offers no explanation.
My guess: fear of a falling dollar internationally. If it is not this, then I do not understand the policy.
Those who expect near-term price inflation to continue at 3% or higher will be disappointed.
Those who think that the precious metals are rising because of a looming threat of price inflation in the United States are mistaken.
All is not what is seems. But, then again, it rarely is."
http://www.garynorth.com/public/3118.cfm
and
http://www.garynorth.com/public/3328.cfm
under a paper-money system,
under a paper-money system, a determined government can always generate higher spending and hence positive inflation." –Ben Bernanke 2002
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
it seems to make, although
it seems to make, although the banks have been borrowing from the Fed in record amounts the past couple of weeks. Wouldn't that newly borrowed money added as new money and increase the money supply thus inflation???