When big money cashes in it’s gains in the gold market, prices are bound to dip. Posted by James Randolph on May 10, 2011
Investments in certified gold assure survival should social order collapse.
May 10, 2011 – When big money cashes in it’s gains in the gold market, prices are bound to dip. But that doesn’t change the fundamentals driving the market or in any way change the outlook for long term investors. The economic outlook reinforces those fundamentals every day, begging for investors to take advantage of the temporary decline in prices to strengthen their positions in certified gold.
ShadowStat’s John Williams said in an interview with the Gold Report that we don’t “have until 2012 before this gets out of control and there’s hyperinflation.” The housing market double dip is just a sign of “both an intensifying double-dip recession and a rapidly escalating inflation problem. Until such time as financial market expectations catch up with the underlying reality, reporting generally will continue to show higher-than-expected inflation and weaker-than- expected economic results” Williams said in his April 19 newsletter.
From my perspective, however, there is an even greater threat facing us today – looming disruption to the social order caused by the disillusionment of the American worker.
Americans are so far taking things in stride, angry but still willing to work within the system. But that is a fragile state and they are weary of supporting Wall Street fat cats while their quality of life steadily declines. The persistent unemployment problem is now pushing many to the brink of their tolerance.
Anne Kadet reports in the Wall Street Journal that “Emboldened by an unemployment crisis … businesses of all sizes have asked employees to take on extra tasks that have little to do with their primary roles and expertise.” Already the most overworked workforce on the planet, companies are leveraging their employees’ fears of losing their jobs to squeeze ever more out of them “and some believe this shift is permanent.”
A recent survey shows that “53% of workers … have taken on new roles, most of them without extra pay … Now that sales are picking up, there’s even more work to do, but companies are reluctant to hire … seeing their profits increase now that their work forces are leaner.” In the late 1920s the textile mills tried similar tactics to increase productivity, a practice the workers called ‘stretch-out,’ and it led to massive strikes across the country.
Job satisfaction has already hit an all time low. Pushing workers to put in extra hours is creating performance impairing fatigue and forced multitasking is drastically reducing productivity.
Social unrest can quickly escalate to the point of making all other issues moot. Only investments in certified gold can assure survival in the event of collapse of social order.
Senior Staff Writer – Certified Gold Exchange