gold breaking $1,502 per ounce.
Today silver hit a 31-year high. You have to go all the way back to 1980 to find silver at today's price of $46 per ounce.
1980? Ring any bells out there? Inflation in the United States in 1980 was a staggering 13.5%. What signals do you think the market is sending when the price of silver rose 8% THIS WEEK alone?
In other cheerful financial news, gold closed for the first time over $1,500 an ounce and set a new daily high at $1,509.
The U.S. dollar under the brilliant leadership of Bernanke, Geithner, and Obama hit a new 3-year low today against virtually every other foreign currency. The dollar is being crushed around the world as our Federal Reserve Bank keeps a zero interest rate policy while the rest of the world is drowning in dollars and building barriers to keep them out. Read this absolutely stunning editorial from today's Wall Street Journal on how the Fed is destroying the U.S. dollar as a reserve currency.
Why should you care about any of this? You don't own gold, couldn't care less about silver, or the fact that oil broke $112 per barrel today. The Wall Street Journal opinion piece cited above ends this way:
At an economic town hall this week, President Obama blamed "speculators" for rising oil prices. He should have mentioned the Fed and his own Treasury, which have encouraged the world to invest in hedges against the falling dollar. Chairman Ben Bernanke and Mr. Geithner have deliberately pursued a policy of unprecedented monetary and spending stimulus to reflate the economy and boost asset prices. The bill is coming due in a weak dollar, food and energy inflation, and the decline of U.S. economic credibility. (emphasis added)
I could have written this myself.