We small investors, however, can make our own adjustment to this new situation by getting serious about gold investing and letting the government fiddle while Wall Street burns. Posted by James Randolph on January 28, 2011
Beat the recession hoax with gold investing.
January 28, 2011 – The folks who are quick to call the slump in the gold market a correction are the same ones who have been trying to sell us on the idea that we are coming out of a recession. They have it wrong on both counts.
Bill Bonner, founder of The Daily Reckoning, distinguishes between a recession and what he terms the Great Correction: “A Great Correction is very different from a recession. It is not a pause in an otherwise healthy economy. Instead, it is a change of direction…an adjustment to new circumstances.” The idea is simple and it makes a lot of sense.
Our entire economy was in a bubble for the past decade and is now “going in a different direction…and responding to a different set of circumstances.” For more than a half century the economy ballooned on credit and now we are left to pay the tab. No matter what we do, the last thing we want is “recovery” back into the bubble.
We were told that new service positions would compensate for the loss of manufacturing jobs but they never materialized. The employment numbers just looked good because we were busy building too many houses that were too high priced. The wealth of the common household was structured around two unsustainable features of the economy.
There is no easy path through a major economic correction, and no shortcuts. Adjustment to new conditions in a huge economy is necessarily very slow and painful. The government’s attempts at recovery are pushing us in the wrong direction, “propping up the industries that need to be cut down to size – finance and housing – at a cost of over a trillion dollars.”
We small investors, however, can make our own adjustment to this new situation by getting serious about gold investing and letting the government fiddle while Wall Street burns.
Senior Staff Writer – Certified Gold Exchange