Add San Bernardino to the Chapter 9 List; Gold Will Go Higher; Disturbing Notes
I was originally not going to do a post today and take the day off. Same old Stuff different day.
But’s it’s never really business as usual. Here’s the latest municipal travesty: Municipal Unions strike again! San Bernardino going bankrupt. Why? Pensions and employee benefits. And get this: they were INCREASED even during the financial crisis in 2008!
WHY I SEE GOLD GOING HIGHER
Read this excerpt. It explains it better than what I can come up with:
John Aziz of Azizonomics / Propping Up The Gold Price?
Ultimately, the surge in demand for gold reflects one thing alone: distrust of the increasingly messy, interconnected, over-leveraged and fraudulent financial system. Whether it is China — fearful of dollar debasement — loading up on bullion, or retail investors in the United States or Europe — fearful of another MF Global (or PFG, or Lehman Brothers) — stacking Krugerrands in their basement, demand for gold reflects distrust in finance, distrust in the financial establishment, distrust in banks, distrust in regulators, distrust in government and distrust in the financial media. And it is that distrust — not (by any stretch of the imagination) central bank interventionism — that is the force moving demand for gold.
The distrust is not going anywhere because the system is still rotten. We all know — even Business Insider readers know deep down, I think — that there is something exceedingly rotten at the heart of the global financial system. We don’t know quite how rotten, how deep the rabbit hole goes, who will be implicated, or how fast. But with every LIBOR-rigging scandal (which the Fed, of course, was aware of), every raided segregated account, every devalued pension fund, every failed speculative “hedge”, every Facebook or Zynga pump-and-dump, we get closer to the truth.
There will be no bear market for physical gold until trust in the financial system and regulators is fixed, until markets trade fundamentals instead of the possibility of the NEW QE, until governments represent the interests of their people instead of the interests of tiny financial elites.
Jim again: The above keys in well to the commentary yesterday where a guy like Roubini suggests on mainstream Bloomberg that a few hanging, or imprisoned forever bankers would be beneficial. They do their dirty work with IMPUNITY and we the people suffer.
A Long Hot Summer Ahead
Fed minutes are likely to show that QE plans are on hold. The next opportunity would be the December Fed meeting. Ho Ho Ho. At best, expect the economy to grind along, barely above 1% annual growth, through the election.
And now more disturbing notes:
From zerohedge.com: Wholesale ‘sales’ plunged by their most since March 2009 with Lumber (but but what about the housing recovery) dropping the most MoM in durables and Farm Products dropping the most YoY among non-durables.
Police in Spain fire rubber bullets at protesting coal miners upset over subsidy cuts: http://apne.ws/P0Gaji -PP
Let the denials begin anew! Australia Is No Spain, Says Treasurer Wayne Swan http://bit.ly/MgmWln via CNBC. In Australia’s favor is low levels of public debt and even the potential for a budget surplus.
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Author Jim Kingsland
Market commentator with focus on Gold and Silver after long broadcast career at FNN, Bloomberg, and Fox. #RandomHouse published author on PMs. Jim has also been involved in projects for CAC and Coinplex.
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