Foreign governments are buying gold at levels not seen in 30 years due to risk of further declines in the US dollar.
The Obama team is dedicated to Federal Reserve Chairman Ben Bernanke’s philosophy of avoiding depression through the printing press to proliferate cheap money. We are being set up for the acceptance of quantitative stimulus by whatever means and guises necessary.
Until now, everything was coming up roses. National recovery was in the air. Then, all of sudden these past few weeks, data turned on a dime? Economists were compelled to rethink hitherto positive figures. Are we being programmed to believe more quantitative easing is necessary?
It would not be surprising if we were finessed into acceptance of inflationary policies. Bills could be paid with cheap dollars. Moribund local and state governments could pay off their strangling debts. Think of our swollen budget being paid with cheap dollars. A seemingly simple solution to a complex problem. However, there may be another side to this.
Our erstwhile allies, such as China and Russia, have been making noise about setting up an alternative currency. Witness Greece and the PIIGS nations (Portugal, Italy, Ireland, Greece and Spain). They are desperate for money to extricate themselves from their financial quicksands. More bailouts, anyone? (read more)