TDS - Beck - Not So Mellow Gold

Glenn Beck drives up the price of gold by fanning the flames of fear, but not because he's a paid spokesman.
paganif1says...

god dammit, every time i go "that's as low as they can go" i kick myself. then i read people saying that and go haha retard, they always steep lower (to make myself feel better of course) and then Beck and Co. do it again... why do i still get surprised, why lord, why?

PS. Could you tell Mr. Woods to go home now, my mom and him have been working on her stroke for three hours now and i can barely hear my ann coulter

BansheeXsays...

Beck is easy fodder and this segment seems to be implying that gold's price is a result of illegitimate fear and not actual currency debasement worldwide. Not even Beck's massive ego can affect the price of gold. Gold began going up years ago when Greenspan lowered interest rates to 1% and blew up the real estate bubble.

http://www.kitco.com/charts/popup/au3650nyb.html

The Fed's continued policy of inflation, the arbitrary creation of dollar units at no labor or material cost, is what is making dollars less scarce relative to gold. Yes, the real estate bubble was allowed to collapse about halfway, but gold continues to rise in anticipation of the banks eventually loaning all that bailout money they received. It can't just sit on the sidelines forever, either it's retracted and we pay the piper, or it's loaned out. The problem with loaning it out is that we may lose key buyers of our debt. A bond is a promise to pay future dollars, and if we are rapidly decreasing their scarcity relative to goods, it becomes a losing proposition to buy bonds at such a low interest rate. Some of the largest purchasers of gold are foreign central banks, which are currently VASTLY underinvested in gold. China has only 1% of its reserves in gold, the rest is paper. India recently bought 200 metric tons.

I will start believing in the gold bubble crowd when I stop seeing those infomercials getting highly indebted Americans to SELL their gold for paper. You talk to the typical person the street, and they're still oblivious to what gold represents, and those that do are not buying, but selling. This is just the beginning of a huge bull run, and it's kind of hilarious to see some people calling the top over and over again. Peter Schiff wrote a funny article in 2006 about what a gold bubble would actually look like.

http://www.kitco.com/ind/Schiff/apr252006.html

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