Yesterday, after Tomothy Geitner made the non-announcement of the “plans” for the stolen TARP funds, the market sank almost 400 points, and gold rallied, up a about 30 bucks.
What does this tell us?
Yep, people have lost confidence in government having any kind of solution whatsoever.
The truth is, Geitner and Obama and the rest of the government have no idea what they are doing. They are just taking stabs in the dark as to how to “revive the economy”, when in reality, the only right thing to do is nothing at all!
Today, the market did not rally and gold did. We have an alarming situation at hand. The government bureaucrats keep saying they have to “act”, but acting is exactly what got us into this mess. Obama somehow thinks that the reason Japan was mired in a 16 year+ recession was because their government didn’t act! This is hillarious. The Japanese government ran their interest rates all the way down to zero- to no avail.
The problem here is much worse than Japan. While they could somewhat withstand government interfering in the economy nonsense, the U.S. is much more fragile. People are unemployed, not a lot of people have saved over the past decade, and our manufacturing base is dead. Our government’s plan to print more money to solve the problem is just like a heroin addict getting more heroin to “make things better”.
Money printing as the government is doing is prolonging this recession, and leading us right smack into the worst depression our country has ever faced.
The only way to protect yourself is by buying some gold or silver. Real money doesn’t ever “lose value”, and right now we are nearing the last days of being able to buy gold for less than $1000/oz. Silver is actually a better deal at $13 an ounce, but don’t count on that lasting more than another week or so either.
Pick up small amounts of gold and silver easily at goldmoney.com.