Tuesday, July 26, 2011

Central Wankers

Confidence in central bankers’ ability to learn from     past inflation is as likely to be misplaced
as it was in their ability to learn from past credit booms. Gold remains the cleanest insurance
against such overconfidence”     Dylan Grice

The past few weeks have afforded an almost unmatched opportunity to observe the venal mendacity of the political class as it exists in Europe and the United States at the current time. Both groups have bent over backwards to avoid doing the job for which they accept pay, all with lips firmly attached to the butt cheeks of their bankster bosses. 

The European contingent after ducking the problem for as long as they could, have proposed a set of solutions that imbue the Euro Currency with the integrity of a pizza coupon. 

Meanwhile back in Washington DC our elected blowhards are in full blow. They are unable to reach an agreement to raise the debt ceiling, a meaningless line in the sand that has been moved 67 times since 1960.  Americans face appalling levels of unemployment, a faltering recovery and runaway debt and Obummer and the 535 elves can’t be bothered to stop running for office.  Rutledge once said if you assume politicians are liars and thieves, you do your best forecasting. So following that logic I continue to be bullish gold as the currency these charlatans cannot debase. A debt ceiling agreement will almost certainly produce a correction in the precious metals and the CHF and JPY safe haven currencies. But it will be only a correction.  Global wealth managers are calling Bull-hit on developed country politicians. and moving  to gold. Betting on political cowardice  is traditional  and a good bet.

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