Market Commentary: The consequences of paper money inflation
gold and silver had to new heights
The last market commentary two weeks ago titled "Gold and silver on the way to new heights." have now are the new highs or all-time high (ATH) to reach at least in U.S. dollars. Specifically
reached gold on 02/03/2011 a new ATH of $ 1440/oz, silver a Post-Hunt High (PHH) of $ 35/oz - ie the highest value since the beginning of 1980 the Hunt brothers drove the price of silver up to $ 50. € In the case of gold was not yet exceeded the previous ATH from € 1070/oz because the euro compared to back then is now stronger.
The media is already written by an early gold price of $ 1500. This is very realistic, because now some things come together: a dying €, soon the 3rd PIG, die off Portugal, is, an even sicker U.S. dollar, which currently falls even against the euro, revolutions in North Africa, the uncertainty and bring the oil prices drive up
fled in earlier times in crises in the world, the "investors" (more precisely, the various fund managers) increased automatically in the dollar and in U.S. government bonds, the dollar then. This is quite different this time: there are crises in the world, and the dollar falls. So now, the dollar lost its role as world reserve currency and escape - a very significant development. Something that is prevented by the financial powers by all means as long as possible. Bill Buckler writes all of his "Gold This Week" reports this preamble: "The global paper currency system is very young. It depends for its continued functioning on the BELIEF that the debt is based upon Which it will, someday, be repaid. The one thing, above all others, that could shake that faith, And Therefore the foundations of the modern financial system itself, is a rise (especially a sharp rise) in the U.S. dollar price of Gold "
So. An increase of Gold price in U.S. dollars, and especially a rapid rise shaken the foundation under the U.S. dollar and therefore all other paper money in the world. Why? Because then a move to escape from this paper, behind which nothing but the belief is at the state uses. This paper money then end soon in a hyperinflation. Or: Inflation is the ultimate control. "A tax, know of the people do not that they are taxed. A tax on people who believe in paper money and to their government "(Warren Buffett). If this "inflation tax" is too large, as now, the flight also begins.
particularly in silver is almost nothing left, even the elites are now aggressively in gold. The prices of these metals, money may soon explode properly. Presumably we're watching the big price break, which will bring the financial system to collapse. In the story became more and more money at a print shop as it is now sold off the currency again. This time it will happen again, but there is then no more dollars, could escape to the man. You have the lifeboats of gold.
05th March 2011 http://ef-magazin.de/2011/03/05/2894-marktkommentar-die-folgen-der-papiergeld-inflation
is Na, Since a correlation not only to biofuels but also to the inflation of paper money?
If so, get out of dollars and Euro, but fast!
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