Why Gold and Silver Is The Cure For Panic and Anxiety
A pervasive feeling of doom has crept into the very fabric of our society. Worst of all our people have lost all respect for our leaders and have come to the realization that the partisanship that has taken hold of our government has made our representatives incapable of dealing with the mountain of problems that face our nation.
While I feel that the average citizen (not my readers) is woefully incapable of grasping the insolvency that faces our nation. I think people innately sense that something is very wrong but are unable to articulate the problem and worse have no idea how to fix it. The sad fact is that our once great nation is moving into an unavoidable systemic failure. Most people feel that our representatives and the banks have neither the will nor the solutions for dealing with the Armageddon that is facing our nation.
Under the era of President Reagan we started the deregulation of the banks. This philosophy hit its crescendo under President Clinton who proclaimed that every American should own his or her own home. The realization of the American dream of home ownership, however was a ruse perpetrated by the greedy bankers to increase the annual bonuses. This was not capital creation – it was capital destruction. The apex of capital destruction has taken place over the last three or four years under the guise of quantitative easing. Credit dispensation and monetary growth (debasement) was doled out under the illusion of coming to grips with controlling the problem. This was a classic case of the tail wagging the dog. If you give a homeless person money, he will buy some coffee and a sandwich but not much more. I think this is a perfect analogy of how the middle class has been treated. They have been given just enough money to spend.
The public has been told by the media that the cause of business’s lack of desire to spend and hire is the lack of confidence that has been shown as people would rather pay off their debt rather than go on a spending spree to Banana Republic. Sadly the true reason that businesses don’t spend on creating wealth and jobs is the broad deep insolvency and poor business risk which has emanated from the poor housing market, the failed banking sector and the woeful industrial base.
So what’s in store for tomorrow? Dr. Bernanke gives his speech at Jackson Hole and every talking head has a different spin but I am sure he will simply say that if and when stimulus measures are needed he I is ready to step up. In other words he will say nothing. Gold and silver sure acted like that was what he intended to say today. It was only 3 short days ago that we were in fill blown correction mode.
While Gold hit an all time high on Tuesday, a fill blown correction lasted for two whole days as the SPDR Gold 
In conclusion, I wanted to share something I learned. My brother and I had a conversation today and we came to the conclusion that silver was more like money than gold. While silver has always been called poor man’s gold, remember I have often written that I was a gold bug since I was 8 years old and since I am now 58 I had many years of going to the store for my mother with two quarters for milk and bread and yes – those quarters were silver. Neither my brother nor I could ever remember in our lives using gold as money but using silver as money was just a plain common occurrence. I am long GLD, IAU, PHYS, UGL, SLV, PSLV, and AGQ until I see a real sell off I will remain so. As long as there is runaway debt contagion and worthless paper money I will continue to hold my physical gold and silver ETF’s.
Source: ETFDailyNews.com