The World Gone Crazy and Your Gold Stocks

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...The bottom line is that the precious metal mining stocks with economic resources in the ground will rebound dramatically led by the larger producers...

Gold going up almost $90 on September 17th is not to be taken lightly. This is extremely unusual and bullish. The global financial system led by the United States investment banks, insurance companies and commercial banks are now in a precarious and dangerous situation with asset values and balance sheets suspect.

The bottom line is that the precious metal mining stocks with economic resources in the ground will rebound dramatically led by the larger producers...

The bailout of the financial institutions Fannie, Freddie, AIG and the consolidation of investment banks like Merrill and probably Morgan Stanley into commercial banks will create institutions that cannot fail. Hence the entire professional hierarchy of these new giants will certainly lean towards investments and more financial gimmicks (some to be created in the future) as speculative as possible to make more year end bonuses. Top management who can now also make huge bonuses could care less as Uncle Sam will be there to bail them out. This is certainly a moral hazard concept that will cause taxpayers huge pain in the future.

...Stock markets are in turmoil, the dollar is being debased by massive money supply infusions, trade deficits, budget deficits, etc. and yet gold and the gold stocks continue to go down. The impossible is happening...

It seems like it is all over for the gold bugs…..almost.

Wednesday, September 17, 2008 arrives and gold soars $90 in normal and aftermarket trading in New York. The bell has rung. The great bull market to end all bull markets in gold has resumed...

Socialism is a failure, but capitalism with a paper money system and a central bank manipulating interest rates, foreign exchange values and creating money and credit out of thin air is just as bad. Gold will now go much higher because of all this but it is a sad commentary on the banking elite and government fools that are responsible for our present condition.

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