Gold the protector as democracies move towards totalitarianism

Gold, and perhaps silver, are still in a bull market phase which is likely to continue as governments print money, spin figures, manipulate markets and erode basic liberties.

Author: Lawrence Williams

Posted: Wednesday , 21 Dec 2011

LONDON –

How much is movement in the markets – gold, the dollar, the stock market – for real or illusory, maybe generated by the politicians and bankers trying to put a positive spin on the global economy? As we’ve pointed out many times before, market movement depends on perception, while government feels it is its duty to make us lemmings feel good about the world so economies don’t collapse.

Let’s look at the realities. Governments can release trillions of dollars into the markets to try, mostly unsuccessfully so far, to stimulate growth, mitigate unemployment and keep the general population’s ‘feel-good’ factor short of being suicidal. In this context it is hardly beyond likelihood that the relatively tiny sums (in comparison with all the money being printed under quantitative easing programmes) needed to keep stock markets appearing at least reasonably healthy – on the grounds that a healthy stock market gives the impression that the economy in general remains sound – may be being deployed. Likewise dollar, or other currency, strength – or weakness – is indeed often manipulated by governments as perhaps can be the price of gold (effectively a currency in its own right) where a rising gold price is a flag that all is not well with the mighty dollar or, indeed, with the global economy in general.

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via Mineweb.com – The world’s premier mining and mining investment website Gold the protector as democracies move towards totalitarianism – POLITICAL ECONOMY | Mineweb.

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