5 good reasons why the future of gold still shines brightly.
Before the presidents speech, gold was struggling, profit-taking and investors who are more willing to take risks in the stock market & bonds market moved away from gold as a safe-haven. Obama's speech was vital to the short-term fate of gold. Will gold continue to fall? Will gold rise back?
Obama painted a nice picture of the America of old, of how the world of old was one way or another was outsmarted & out-witted by the USA. He put on a perfect show, but try to look beyond the smoke-screen of his speech, and you will realise the US economy is no where near any improvement.
#1: USA will reduce its deficit by 400 Billion dollars! By a five-year freeze in domestic spending projected to save $400 billion over the next decade.
'Are you kidding me? The US deficit/debt is continually growing at a rate of 300-400 Billion dollars a year. So it is actually just slowing down the path of the US economy to its doom, nothing more. Even if the debt is reduced by 400 billion, a freeze in domestic spending will not benefit this American consumerist machines.
#2: USA will invest more money in Education
'That sounds nice, giving the kids today a nice solid education for a good paycheck tomorrow. Firstly do you know the staggering amount of student loans and debts that exist in USA? The amount is even more then the credit card debts owed in America. This move is going to drive more and more students deeper into debt and despair. What good is the future of America if its young is full of debt, facing a 20% jobless rate and a poor credit score?
#3. Wall-Street & Lobbyist still Controls the Cabinet
No reshuffle or even a hint of any change in the cabinet, cronies like Timothy Franz Geithner (ex President of the Federal reserve) is still the Secretary of Treasury.
#4. The Federal Reserve Interest rates have not moved.
'They are still at near Zero percent. If you put in 1000 dollars in a bank, after 10 years, your interest will be near zero, and your bank balance after 10 years will either be 1000 dollars or zero dollars (if the bank collaspes).'
#5. Continuing American War Escapades in the Middle-east, Continuing Pressures on Iran and North-Korea.
'For freedom! Oh really? Apart from the political reasons, continuing of these military adventures pushes whats left of the American economy to the brink of Bankruptcy. Sure, soldiering jobs are created, but the real show of a country's economic power is the ability to produce and manufacture goods and services, not by its massive army and war machines created. When USA's war industry prospers, the rest flounders.'
Gold measures not only how bad the state of the world economy is, it is also a measure of how screwed up the world is, political unrest and threats of war is prone to make gold soar. President Obama has put up another annual smoke-screen for the American people. Every time gold rises by a cent, is another second the world is creeping into chaos.
When gold is stable, chaos is controlled.
Marc Faber on Obama's Zombie Economy
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