The gold price
Gold vs. Government - Friday 14th August 2009
Governments are even more incompetent than we realized...
WE ARE enjoying our month in the country, writes Bill Bonner in The Daily Reckoning from his French chateau.
Not exactly a vacation...but close. We work in the office from 8am until lunchtime at about 2pm. Then, we turn our attention to other things. In the summer, that means painting.
We're repainting the billiard room, because Elizabeth decided that the curtains needed to be changed. And then, we're repainting a farmhouse, top to bottom, before renting it out.
Painting is a fairly relaxing occupation. You can do it while thinking about other things. Rolling the walls or cutting in the corners, some men might think of going hunting...or playing golf. We try to figure out what is going on in the world economy. For these are remarkable times we live in. We see what is happening...pretty much what we expected.
But we're not sure where it leads.
Regular readers may have noticed a shift in our thinking recently. Well, you can blame latex. As we were painting in the billiard room we began to see that governments are even more incompetent than we had realized. They can't even create inflation on demand!
A few months ago, we were preparing for inflation...even hyperinflation. Now we're not so sure. The depression and the Chinese vigilantes may hold off inflation...even for years.
Does this mean you shouldn't buy or even sell gold? Well...we wouldn't go that far. Even in the Great Depression, Gold Bullion and gold-mining stocks rose in price. And the one and only sure thing is that the world monetary system is dangerously unstable. We'll hold gold until it settles down. Just don't count on getting rich from it in the short-term.
Looking to Buy Gold today? Make it simple, safe and cost-effective at BullionVault...
WE ARE enjoying our month in the country, writes Bill Bonner in The Daily Reckoning from his French chateau.
Not exactly a vacation...but close. We work in the office from 8am until lunchtime at about 2pm. Then, we turn our attention to other things. In the summer, that means painting.
We're repainting the billiard room, because Elizabeth decided that the curtains needed to be changed. And then, we're repainting a farmhouse, top to bottom, before renting it out.
Painting is a fairly relaxing occupation. You can do it while thinking about other things. Rolling the walls or cutting in the corners, some men might think of going hunting...or playing golf. We try to figure out what is going on in the world economy. For these are remarkable times we live in. We see what is happening...pretty much what we expected.
But we're not sure where it leads.
Regular readers may have noticed a shift in our thinking recently. Well, you can blame latex. As we were painting in the billiard room we began to see that governments are even more incompetent than we had realized. They can't even create inflation on demand!
A few months ago, we were preparing for inflation...even hyperinflation. Now we're not so sure. The depression and the Chinese vigilantes may hold off inflation...even for years.
Does this mean you shouldn't buy or even sell gold? Well...we wouldn't go that far. Even in the Great Depression, Gold Bullion and gold-mining stocks rose in price. And the one and only sure thing is that the world monetary system is dangerously unstable. We'll hold gold until it settles down. Just don't count on getting rich from it in the short-term.
Looking to Buy Gold today? Make it simple, safe and cost-effective at BullionVault...
Bill Bonner, 14 Aug '09
Bill Bonner is founder and owner of Agora Inc., one of America's largest consumer newsletter publishers. Editor of free The Daily Reckoning email – now read by more than 500,000 worldwide – he is also the author of three best-selling investment books, most recently Mobs, Messiahs & Markets (John Wiley, 2007).
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