Too Much Plastic Surgery

"The dollar is stable for now but soon it resumes the fundamental selling drama. Major trends have not changed in years. We went from over-bought to over-sold in all commodities including gold and silver. In previous precious metal rallies, there have been other -50% haircuts followed by larger rallies making the prelude look puny by comparison.

We think this happens again. No whining. Just wait and stay on the gold and silver course. Those folks at Goldman Sachs are acknowledged to be among the best traders in the world. When they like gold so do we. From our view, their new, positive gold statements reinforce our old forecasts. They are almost always trading winners."

http://www.kitco.com/ind/Wiegand/oct152008.html


Watching the dollar rise and gold fall in light of the massive printing of new money (see chart below) is like watching Cher's losing battle against aging. Each new plastic surgery may be an improvement from the distance, but close up, it is downright SCARY, and it keeps getting worse.

The powers-that-be continue to sell gold short, forcing the price down, so that the masses won't view it as an alternative to their paper money. Their hope is that they don't pull their paper dollars out of the bank and buy gold. In fact, that is what this recent $250,000 FDIC public relations move was all about.....confidence.

The feds know that a massive flight from deposit accounts would collapse the whole system, as FDIC can't bailout the whole system, nor was it ever intended to.

Keeping that in mind, look at this recent decline in the gold price as a buying opportunity. Because, just like Cher, the dollar may look good on the surface for a while, but underneath it all, it's fake.

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"Leaving aside the various bailouts/ interventions (Fannie/ Freddie/ AIG), the Feds are now running the printing presses like maniacs. The Adjusted Monetary Base has soared from $873B on Sept. 10 to $1.017 trillion as of the Wednesday before last. The compound annual rate of growth since August 13 is 114 %. It’s not yet Weimar Germany inflation… but it is approaching Argentinean levels.

I realize some people are visual. And these are enormous numbers to picture. So perhaps the below chart will put this all into perspective. It’s a chart of the US Adjusted Monetary Base."

http://www.kitco.com/ind/Summers/oct222008.html

















source: http://www.globalstockmonitor.com/