Major events are occurring across multiple fronts around the world. Gold has just shattered its all time high and is now in uncharted economic territory, and I expect that significantly higher numbers are in store before the end of the year. Local, state and national primaries are being held across the country in preparation for the November mid-term elections. Once again, the election mantra is change. We've been clamoring for change for decades.
Every 2 or 4 years its the same song, second verse. Real change seems to be an elusive target, while in the meantime we always seem to settle for more of the same. Big government politicians on both sides of the aisle. It's like we keep getting ready, to get ready. And in the process, we kick the can down the road, past the next election. There's a very real possibility the can won't make it past the November election. The can has been kicked too many times. It has too many dents, and is sharp along the edges. The next person who kicks it may very well cut their foot and start to bleed out, and then pass out.
Every 2 or 4 years its the same song, second verse. Real change seems to be an elusive target, while in the meantime we always seem to settle for more of the same. Big government politicians on both sides of the aisle. It's like we keep getting ready, to get ready. And in the process, we kick the can down the road, past the next election. There's a very real possibility the can won't make it past the November election. The can has been kicked too many times. It has too many dents, and is sharp along the edges. The next person who kicks it may very well cut their foot and start to bleed out, and then pass out.
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I suggest that is already happening. A USAToday article this week states that 14.9 million Americans remain jobless. New jobs are not being created. People continue to grow restless, frustrated and angry. This is happening in real time against a backdrop of record bank profits in the second quarter: $3.1 billion for Bank of America. $2.7 billion for Citigroup. And Goldman Sachs payroll is up 9.3% the past year. All of these entities, and many more, received massive government bailouts in 2008 and 2009. Bailouts come from deficit spending. Deficit spending steals prosperity from the future, through debt. The debt is now mathematically impossible to payoff, and it has become impossible to service.
When politicians campaign, and run ads about paying down the debt, or cutting the deficit, they have absolutely no idea what they are talking about. Even with interest rates at close to zero percent, the economy is living on borrowed time. If interest rates were to rise by even 1%, the financial shock waves would be felt on every continent of the globe. That day is coming, and when it does, the only thing that will save, what it has taken you a lifetime to earn, is gold.
I have seen a variety of estimates that suggest only about 1% of the public is invested in any kind of gold related asset. If that estimate is even remotely accurate, it makes anyone who talks about gold being in any kind of a bubble, absolutely disingenuous. The only financial instruments that will likely exhibit bubble like characteristics in the not too distant future are fiat paper currencies backed by faith, credit and hope.
Since election season is upon us, maybe we shouldn't be too hard on our politicians. Because at the end of the day, all the money they print, all the bailouts they engineer, all the deficit spending they approve, all the loans, guarantees and direct investments they make... all those paper promises, will eventually, accrue to gold and gold related assets. Gold is a simple tool and a simple solution in a complex financial universe. It's really that simple.
When politicians campaign, and run ads about paying down the debt, or cutting the deficit, they have absolutely no idea what they are talking about. Even with interest rates at close to zero percent, the economy is living on borrowed time. If interest rates were to rise by even 1%, the financial shock waves would be felt on every continent of the globe. That day is coming, and when it does, the only thing that will save, what it has taken you a lifetime to earn, is gold.
I have seen a variety of estimates that suggest only about 1% of the public is invested in any kind of gold related asset. If that estimate is even remotely accurate, it makes anyone who talks about gold being in any kind of a bubble, absolutely disingenuous. The only financial instruments that will likely exhibit bubble like characteristics in the not too distant future are fiat paper currencies backed by faith, credit and hope.
Since election season is upon us, maybe we shouldn't be too hard on our politicians. Because at the end of the day, all the money they print, all the bailouts they engineer, all the deficit spending they approve, all the loans, guarantees and direct investments they make... all those paper promises, will eventually, accrue to gold and gold related assets. Gold is a simple tool and a simple solution in a complex financial universe. It's really that simple.
