Hold tight, this should be a banner week for gold newsletters. Posted by James Randolph on June 21, 2011
Gold investment is still the best protection we have against the Fed.
June 21, 2011 – Hold tight, this should be a banner week for gold newsletters. On Wednesday we will be graced with Bernanke’s second news conference in which should be unveiled the Fed’s next Great Plan. Months of speculation on where we will go from here might finally be put to rest.
It will be no easy task. To any reasonable thinking person everything the Fed has done to date has failed miserably, the only success being making the crisis even worse. But nobody is harboring the slightest hope of an admission of the Fed’s ineptitude, a change of heart that will set us on a bold new course to rectify the fundamental problems threatening to bring the greatest country on the planet to its knees.
The best we can hope for is entertainment. In one breath the Fed will try to quell the growing global sentiment that it is absolutely clueless and incapable of effecting positive change while assuaging the growing realization among American citizens that the recovery has been a hoax. I will be immensely disappointed if Bernanke resorts to the same tired rhetoric and spin doctoring that has been the hallmark of his chairmanship.
Most interesting will be the juxtaposition of what Bernanke has to say with the release of existing home sales data before the press conference and new figures for new home sales, unemployment claims, and durable goods orders that will follow. If nothing else, we will get an idea of how gullible the Fed believes global economists and the American people are.
The cherry on top will be the Commerce Department’s conjuring up of its third estimate of first- quarter GDP. I have a sneaking suspicion that new insight will reveal how we are in fact doing better than anyone imagined. Goldman Sachs, among many others who are continually scaling back their predictions for GDP “growth,” just aren’t seeing the big picture.
I desperately want to be proven wrong. Pessimism doesn’t suit me well. I would like for once to see a glimmer of hope that real progress is just beyond the horizon. But self delusion suits me even less.
Reality speaks in no uncertain terms. A sea change in our government’s philosophy is hardly imminent; gold investment is still the best protection we have against the Fed’s destructive policies.
Senior Staff Writer – Certified Gold Exchange