April 26, 2012
By Kevin Michael Grace
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Gold was up (at press time) $14.30 (+0.8%) for the week to $1,657.30, and silver was down $0.57 (-1.8%) to $31.16. GoldCore attributed gold’s rise to “concerns that the Fed could employ more QE in a further attempt to stimulate the economy… Continuing ultra-loose monetary policies and negative real interest rates continue to support gold.”
At a press conference yesterday, the Ben Bernanke declared, “If appropriate…we remain entirely prepared to take additional action.” One wonders why this would be necessary given the sunshine, lollipops and rainbows contained within Wednesday’s Federal Open Market Committee statement: economy expanding, unemployment down, household spending up, inflation not a threat.
Perhaps he’s got wind of the “smoking ruin” that is Europe. From Thursday’s Deutsche Bank communiqué: “Yesterday, the UK became the latest country to return to recession as GDP (-0.2% vs +0.1% expected) disappointed. Of major Western developed countries, the UK now joins Greece, Italy, Portugal, Ireland, Belgium, Denmark, Holland, Czech Republic and Slovenia as being in recession. By the time the data comes out next week, it’s likely to be followed by Spain, and remember German GDP was negative in 4Q and is expected to be flat in 1Q, so it’s not impossible that they will also follow.”
GoldCore reports that John Butler, author of The Golden Revolution: How to Prepare for the Coming Global Gold Standard, told Reuters TV, “The era of paper currency is coming to an end” and that $2,000-an-ounce gold could be “the bargain of a lifetime.”
Butler predicts that Russia could be the first country to return to the gold standard, which “could lead to a run on the US dollar and financial assets and could see the dollar lose 20% in 24 hours as investors pour into real assets such as oil and gold. This could lead to a depression in the US.” Butler sees this leading to another Bretton Woods conference, which would serve as the Congress of Vienna of the post-2008 world order.
Should gold, as Butler suggests, go to $5,000 an ounce, the Ben Bernanke would face death by pitchfork, which explains why the US Government is so keen on gold suppression. What remains unexplained is why the Obama administration has refused to do something, anything, to persuade Americans they have not been branded as Gadarene swine.
When Kwik-E-Mart proprietor Apu Nahasapeemapetilon was caught on camera selling spoiled meat, he replied (like Obama and the Ben Bernanke) that he was only “following standard procedure.” A corporate henchman countered, “But it’s also standard procedure to blame any problems on a scapegoat or sacrificial lamb.” Poor Apu pleaded, “Uh huh, and if I can obtain for you these animals?”
At AlterNet, Pam Martens delivers the indictment. “Only on Wall Street can you bankrupt a company, misplace $1.6 billion of customers’ money; lose 75% of shareholders’ money in two weeks, speed dial a high-priced criminal attorney and get a court to authorize the payment of your multimillion dollar legal tab from the failed company’s insurance policies, have regulators waive your requirements to take licensing exams required to work in the securities and commodities industry, have your Board of Directors waive your loyalty to the firm, run a bucket shop out of the UK and still have the word ‘Honorable’ affixed to your name in a Congressional investigations hearing.”
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