Friday, September 24, 2010

Gold Breaks $1,300 Per Ounce and Silver at a 30-Year High: Mr. Bernanke Are You Listening?

Gold breaks $1,300 per ounce today.

Silver is now at a 30-year high.  (Do you remember 1980 and what the economy looked like then?)

The world financial markets are repudiating Mr. Bernanke's actions at the Fed.  EVERYONE including me, the kitchen sink, and Mickey Mouse are seeing massive inflation and a deteriorating dollar on the horizon and NO ONE wants to be holding dollars or dollar denominated assets.

You say "Who cares?" about commodity prices like gold and silver?

Well, I will give you one example of many why you should care.

Oil prices are denominated in dollars.  Watch the price of gasoline rise in the months ahead EVEN IF DEMAND FOR OIL IS CONSTANT.

Most of Mr. Obama's original economic team is gone.  Only Treasury Geithner remains, and he needs to start packing his bags.

The world financial markets are sending the U.S. dollar a message.  A clear, LOUD, and overwhelming message.

"WE DO NOT TRUST YOU."  We would rather hold a rather useless commodity (gold) instead of a liquid currency with a crumbling underlying value.

Will someone in Washington please tell Helicopter Ben this simple message?  Does gold need to hit $2,000 per ounce before someone does?  I believe what Lindsay Lohan says about her drug use more than I believe Bernanke on the dollar.