October 29th, 2012 11:49 EST
American Economic "Gloom and Gloomiers" and "Biggest Fool Theory" in Gold...
This is for the American economic "Gloom and Gloomiers".... A discussion per the well-organized and quite persuasive video by Stansberry Research that tries to continue to sell you on gold and a collapsing America...
I agree with much of his assessment; however, I disagree with his over the top Gloom and Doom predictions. We have seen throughout history that this is nothing new as economics have turned to commodities in the past in panics. There have been a many commodities, that have been standards for currency, grain, silver gold and even Tulips in the Netherlands as Tulip bulbs became as good as currency and many wanted to turn to a Tulip standard. So, it is not surprising that this man and/or people like Ron Paul support Gold Standards as only a few hold gold and it would put more wealth into their special interest gains over that of a nations gain.
I am not a huge supporter of a continued focus on Gold or a Gold Standard as the Biggest Fool Theory will ultimately come to play. The biggest fool usually ends up being the average person buying too late in the market, as those that have been in the market for a long time dumps their holdings upon them as an exit strategy. I support a continued believe in America and our President and Congress to move America back into a solid GDP position and begin focusing on long term economic national security.
Ross Perot and I warned of this in the early 90`s during the 1st Gulf War. Ross Perot warned of this in the mid 90`s... I warned of these in 2000, then as the Bush Administration returned to Iraq, and then for the past 10 years as I personally witnessed such a crash in the former Soviet Union...
In fact, it would have already happened if I had not suggested "Bailouts" to prevent the collapse of all the Banks that took bailouts... Bailouts were better than the FDIC covering all the bank shut downs...
Stansberry notes the U.S. Government`s ability to print due to the U.S. being the Reserve Currency. American economy is the most trusted.
The BRIC economies are not the answer to a Reserve Currency:
Brazil has surpassed the U.K. economy; it is still minor compared to the U.S.
Russia has already proven they cannot manage; however, the economies are improving and will play a part in trade acceptance that will offset much of our consumption. The former Soviet Union states have went through a 20 year economic collapse and currently deal with a very instable economy. Housing prices over inflated, mortgage`s unattainable at a near 20% interest rate, and the lack of capital market security due to the rule of law, lack of understanding of sound economic and finance principles, and trust of a mafia type economy where investors are daily swindled.
India is unstable and has few financial and country economic standards that would stabilize growth and development. With such conditions in the country there are few large sectors of the economy that could be managed with western investment standards. I have done a considerable amount of research in and around the Bangalore Airport, but they do not get it looking for large investors over that of sound land development principles. With such lack of understanding on how to manage real growth and development it is difficult for Global Capital Markets to invest and profit in a stable way.
China has Communist run Capitalism, and depends upon exports and is as dependent upon the United States receiving their goods that they will push for inflation in the U.S. in exchange for getting their loans back, but the U.S. will require more imports of goods from America to balance our trade debt and GDP stability... With vast state owned enterprises and the lack of market penetration China cannot be the Reserve Currency. Yet, it can and will continue to be an economic powerhouse with a very solid strategic Supply Side Economic focus.
The EURO has the lack of long-term stability and has its own economic problems with the countries of PIIGS (Portugal, Ireland, Italy, Greece, and Spain). Yet, second to the United States Western Europe is quite stable and secure and has many of the same economic issues that the United States face. They too are turning to their Central Banks for bailouts to offset the economic downturns and to capitalize its banks and states that are in economic decline.
Therefore, the United States and most other nations will continue to turn to the Central Banks and the U.S. Federal Reserve simple, but most secure and best managed to borrow low cost capital for bailouts and leverage capital to fund Global Infrastructure projects that will in turn stabilize the United States economy, and allow more trade and commerce, growth and development to maintain Global Economic Stability through a United Nations Global Reform Mandate.