Bernake knows he can't keep interest rates low forever and print forever. Therefore he needs to drum up some confidence in order to turn his "recovery" (www.Recovery.gov -which cost taxpayers $18M to make...) into a self fulfilling prophecy.
Gold and silver are commodities mined out of the ground using hard human labor. Unless you think that science is about to give us alchemy (hah!), buy gold and silver to protect your wealth against stupid politicians spending money we don't have.
I want more freedom and I cannot lie. No other brothers can deny. When the Fed marches in with a itty-bitty rate and the IRS takes your cake, it's no FUN!
It shouldn't take a lot of intelligence to realize that something whose supply grows at about a couple of percent a year is going to hold purchasing-power better than something that's controlled by a coercive monopoly & has potentially unlimited supply with a strong history of misuse
Let others hold onto their toilet-papers, I'd rather have the "useless pieces of rocks"! Let's see where we'll be in a few years or even decades' time!
Short-run is only relevant for those who are trying to "invest" in gold but for those who are looking at it as a method of preserving their purchasing-power in the long-run, needn't bother much about the short-run & think only about the long-term & trust the governments' ability to screw up, to devalue & destroy currencies, history repeats itself because the majority is too dumb to learn history (anything for that matter )!
The interest-rates aren't going anywhere, this is just propaganda, just like Bernanke & others were idiotically lying about the economy before the collapse. They can't raise rates because the debt & spending is completely unsustainable & there's no end in sight to that, so Fed is going to have to continue devaluing (holds true for many countries) to dilute the debt. Currency-wars, here we come!
Last edited by Paul Or Nothing II; 04-05-2012 at 12:42 AM.
There is enormous inertia — a tyranny of the status quo — in private and especially governmental arrangements. Only a crisis — actual or perceived — produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes politically inevitable
- Milton Friedman
^ funniest video, he's like a cheating gf....
First: tells you what you want to here
Second: then you catch them in a lie,
truth is treason in the empire of lies
Deflation. The US is doing great; Europe, not so much.