Socio-Economics History Blog

Socio-Economics & History Commentary

Gold Price to go Parabolic!

gold-price-parabolic
  • Quantitative Easing has started. UK will print money out of thin air this week. I suspect the FedRes may already have started buying treasury bonds to prevent a market collapse. No doubt at some point they will publicly announce they have started QE.
     
  • I still think there will be a worldwide monetary collapse this year. Fiat currencies worldwide are already under severe strain. It will get alot worse. When fiat money collapses people will run to gold.
     
  • Greg McCoach comments to The Gold Report (TGR):
     
    The Gold Report (TGR): In your January newsletter, there’s a table that shows how the HUI Gold BUGS Index over 10 years was the top asset class. Can you talk about gold as the top asset class compared to these others?
     
    Greg McCoach (GM): We see by the statistics that the HUI Index, which is a measure of gold and silver precious metal stocks, has performed better than any other asset class in the past 10 years. Now what’s interesting is that we’re still in the process of watching this gold bull unfold. In terms of the four stages of a bull market, we are probably past the midway point and heading into the latter stages. This is where the parabolic moves in the precious metals will start to happen. And with all that is unfolding in the world economic scene, it’s not difficult to see why gold will soon be soaring.
     
    TGR:So you definitely think this bodes well for the next phase of the gold bull market; there will be a parabolic move?
     
    GM: Yes. This is where you’re going to see gold really go to levels that people can’t even comprehend. Up to this point, gold has been a surprise to many in the mainstream media. What investors need to understand about the bull market in gold thus far is that the numbers that we’re dealing with, $960 an ounce gold right now, is nowhere near the 1980 high in gold of $875 an ounce.
     
    You have to inflation-adjust those 1980 numbers for 28 years of true inflation. If you did that, the $875 high in gold would have to be $6,500 an ounce in inflation-adjusted terms. For silver, it’d be $400 dollars an ounce. So when you see silver at its current rate of $14 an ounce and gold at $960 an ounce, in real inflation-adjusted terms, those prices are still dirt cheap, relatively speaking, compared to where they’re going to be going.
     
    As we see the world financial system continue to unravel, the dollar along with all fiat currencies will just implode leaving gold as the currency of last resort. Gold, and silver will go into the stratosphere as this happens. People need to remember that what took gold and silver to their all-time highs in 1980 pales in comparison to what we are dealing with now. The world has never witnessed the likes of the financial destruction that is now underway. It is truly frightening.

     
    TGR:
    You say in your “Greg’s Crystal Ball” section that you think the mania phase is going to start happening sometime next year, in 2010.
     
    GM: I think by the end of this year things are going to be so bad worldwide that gold is going to become headline news and that will become the driving force towards the parabolic moves. What’s happening right now is that the big money is still playing the paper game of musical chairs. “Paper musical chairs,” I call it. When the music stops, people run from one chair to the other chair looking for safety. They run from bonds to dollars to Euros, etc., trying to find the safest place. But they’re not finding it. Why? Because the paper system as we’ve known it is unraveling. So people are trying to chase safety. Well, they can’t find it because it doesn’t exist. They go into dollars, and they feel comfortable there for a little while; then suddenly the dollar tanks again, and then they run out of the dollar to another paper currency.
     
    Ultimately, when the music stops, they’re not going to run to a chair; they’re going to run for the exits. When that happens, they’re going to discover the asset class known as gold. That’s when these parabolic moves are going to happen. As that happens of course, the select precious metal mining stocks will move up accordingly. The leverage investors can get will be phenomenal during such a scenario.
     
  • See also :
     
    Demand for Gold Coins Soar!
    Gold About to SkyRocket ! China Worries about Treasuries and Diversify into Gold !
    Gold Price Set to Soar !
    What’s not to Like about Gold ?
    Dollar Devaluation, Debt Default & Gold
    Massive US Dollar Devaluation Against Gold During 2009
    Gold Rush Worldwide!
    Obama, Roosevelt, Gold Confiscation and Dollar Devaluation

Disclaimer – I am not a financial advisor. This is not an advice to buy, sell or hold any stocks or bonds or any precious metals.
 

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March 9, 2009 Posted by | Economics | , , , , , , | 3 Comments

Sacramento Struggles with Spiralling Homelessness Problem

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Homelessness in Sacramento: Sacramento Tent City Fills Up With The Newly Jobless And Homeless Photo: GETTY

  • More people are on food stamps. The middle class is quickly being destroyed. America is turning into a 3rd world country. Famine will come and jobless rate will rise to 1 million/month by mid 2009.
     
  • Noam Friedlander reports :
     
    The Californian city of Sacramento is struggling to contain growing homelessness among its residents, after a tent city sprung up on the city’s outskirts. 
     
    Sacramento has one of the highest foreclosure rates in the United States. As many as 50 people a week arrive at the tent city and the authorities estimate it is now home to more than 1,200 people.
      
    Now its homeless population hope an Oprah TV show about recession, foreclosures and homelessness will help them out of poverty. They hope the segment on the national talk show will prompt more donations and government help. Producers visited Sacramento in February to visit the homeless shelters.
     
    “We’re very glad that Oprah and her team have chosen to give this crisis a voice, because it is a crisis,” Michele Steeb, executive director of St. John’s Shelter, said. “Our turnaway numbers have risen from 20 women and children being turned away per day in 2007 to 80 in 2008 to our current number of 230 women and children being turned away a day. It is a crisis and it’s only getting worse. We’re so glad that she’s giving the crisis a voice. We’re honoured to be part of the discussion because it’s an important discussion to have,” she said.
     
    The city and county of Sacramento have already received $34 million to help fight the effects of the foreclosure crisis but, in the meantime, hundreds of people have moved into the shelters.
     
    Authorities in Sacramento, where Governor Arnold Schwarzenegger has his office, are suffering as the state has a £30billion deficit and the tent city looks like becoming a permanent fixture.
     
    “I can’t say tent cities are the answer to the homeless population in Sacramento,” Kevin Johnson, Sacramento’s mayor said, “but I think it’s one of the many things that should be considered and looked at.’

     
  • See also :
     
    Food stamp enrollment jumps to record 31.8 million

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March 9, 2009 Posted by | Economics | , , , | 1 Comment

‘Run on UK’ sees Foreign Investors Pull $1 Trillion Out !

  • The death knell has sounded for United Kingdom. UK will go the way of Iceland soon. Too many people are still in denial. The Sterling pound is a worthless currency.
     
  • The Bank of England has got approval for Quantitative Easing, printing money out of thin air. They will start to print money this week. This is currency debasement ! For those of you still holding on to Sterling pound, take the advice of Jim Rogers: sell and get out totally!
     
  • Sean O’Grady reports :
     

    A silent $1 trillion “Run on Britain” by foreign investors was revealed yesterday in the latest statistical releases from the Bank of England. The external liabilities of banks operating in the UK – that is monies held in the UK on behalf of foreign investors – fell by $1 trillion (£700bn) between the spring and the end of 2008, representing a huge loss of funds and of confidence in the City of London.
     
    Some $597.5bn was lost to the banks in the last quarter of last year alone, after a modest positive inflow in the summer, but a massive $682.5bn haemorrhaged in the second quarter of 2008 – a record. About 15 per cent of the monies held by foreigners in the UK were withdrawn over the period, leaving about $6 trillion. This is by far the largest withdrawal of foreign funds from the UK in recent decades – about 10 times what might flow out during a “normal” quarter.
     
    The revelation will fuel fears that the UK’s reputation as a safe place to hold funds is being fatally compromised by the acute crisis in the banking system and a general trend to financial protectionism internationally. This week, Lloyds became the latest bank to approach the Government for more assistance. A deal was agreed last night for the Government to insure about £260bn of assets in return for a stake of up to 75 per cent in the bank. The slide in sterling – it has shed a quarter of its value since mid-2007 – has been both cause and effect of the run on London, seemingly becoming a self-fulfilling phenomenon. The danger is that the heavy depreciation of the pound could become a rout if confidence completely evaporates.
     
    Colin Ellis, an economist at Daiwa Securities, commented: “The outflow of overseas banks’ UK holdings is not surprising – indeed foreign investors in general will still be smarting from the sharp fall in the exchange rate last year, as many UK liabilities are priced in sterling terms. That raises the question of what could possibly tempt overseas investors to return to the UK. Further heavy outflows of funds are probably a given.”
      
    The Bank of England said that there had been a large fall in deposits from the United States, Switzerland, offshore centres such as Jersey and the Cayman Islands, and from Russia.
      
    Paranoia that the UK could follow Iceland into effective national insolvency and jibes about “Reykjavik on Thames” will find an unwelcome substantiation in these statistics – which also show that stricken British banks are having to repatriate similar sums back to Britain. This is scant consolation for the authorities, however, as it means the UK and sterling are, like some emerging markets and currencies, suffering from a flight of capital. By contrast some financial centres and currencies – notably the US dollar and the Swiss franc – are enjoying a boost as “safe havens” in a troubled world.
      
    The sudden international trend towards financial deglobalisation and the flight of money to “home” bases has nonetheless been dramatic. The Prime Minister has already warned about this drift to “financial protectionism” – even though UK banks brought back almost $600bn in the last months of 2008, as they attempted to repair fragile balance sheets. Mr Ellis added: “These data are consistent with UK banks reducing their overseas holdings, at the same time as overseas banks scale back their presence in the UK. That is not surprising, given that governments around the world are having to prop up their banking sectors, and in turn demanding that national institutions focus on domestic markets. But it does run the risk of being financial protectionism by the back door.” 

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March 9, 2009 Posted by | Economics | , , , , , | 1 Comment

Bayer Exposed (HIV Contaminated Vaccine)!

  • Is Big Pharma out to heal us or kill us? It is all about the money! Just follow the money and you will see why large corporations and governments behave the way they do.
     
  • Should you trust Big Pharma totally? Absolutely not! Their interest and objective is to make money. They are not benevolent charitable church organizations out to help you.
     
  • YouTube :
     
    Bayer Sells AIDS-Infected Drug Banned in U.S. in Europe, Asia – Unearthed documents show that the drug company Bayer sold millions of dollars worth of an injectable blood-clotting medicine — Factor VIII concentrate, intended for hemophiliacs — to Asian, Latin American, and some European countries in the mid-1980s, although they knew that it was tainted with AIDS. Bayer knew about the fact that the drug was tainted and told the FDA to keep things under wraps while they made a profit off of a drug that infected its patients. If these allegations are true, then both Bayer and the FDA are at fault for this catastrophe. FDA regulators helped to keep the continued sales hidden, asking the company that the problem be ”quietly solved without alerting the Congress, the medical community and the public,” according to the minutes of a 1985 meeting
     
  • See also :
     
    Live Avian Flu Virus Placed in Baxter Vaccine Materials Sent to 18 Countries

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March 9, 2009 Posted by | Medicine & Health | | 27 Comments

Lindsey Williams – The Coming Food Crisis!

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March 9, 2009 Posted by | Economics, EndTimes, GeoPolitics | , , , , , , , , | 1 Comment

Mexico Declares Martial Law!!

  • Mexico is collapsing! The Mexican army and police force have a tough fight on their hands against the drug cartels. The drug cartels has as many as 100,000 troops compared with Mexico government’s 120,000. No guarantee the authorities will win.
     
  • Refugees are swarming into America. Some say as many as 50 million Mexican refugees will swarm into America. What people do not understand is that: these drug cartels have their own gangs/troops in as many as 200 cities in America. They have their drug pushers/soldiers enforcing their drug trade and territory in America. These drug armies are very well armed. Some reports say they have Russian anti-aircraft missiles… military hardwares..
     
  • The North American Union is coming! Martial law is next for America. The war will spill over into America this year. America will undoubtedly be asked to help out militarily in Mexico. The new currency of the NAU: the Amero has been prepared for a long time. See also :
     
    Mexico Collapsing into Drug Wars !

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March 9, 2009 Posted by | GeoPolitics | , , , , | 6 Comments