End Game for the Long Suffering Gold Bug
Source: GoldSeek, Vincent Bressler (5/4/09)
"The real financial panic has not set in yet."
Real financial reform requires a revaluation of debt and Mother Market will make it so, despite the best efforts of the U.S. government and Federal Reserve.
The government has been fighting this process because so much of the "wealth" of the political insiders who dictate how our government and financial system are run, is in the form of debt. This is debt that we all owe to the financial establishment. But we are not able to pay any longer, so the smart insiders are already buying gold and silver.
The real financial panic has not set in yet. You'll know that it is here when the price of gold and silver literally explodes vs. everything else.
The explosion will be the first clear sign that a rebalancing of the financial system is occurring. The explosion will give those who own precious metals a window of opportunity to exit (most of) their long held positions and buy real property at absolute bargain basement prices. This will be a time when almost everyone is driven by fear and greed to the precious metals. This will be a time of massive de-leveraging when it seems that the entire economy collapses into the arms of gold and silver, when all past monetary promises are called into question and found lacking.
This time of panic cannot and will not last long. It will be followed by a gradual re-leveraging, with gold once again serving its proper role as the base monetary asset and silver serving its proper role as a monetary asset that circulates alongside virtual and debt-based money.