Martin Armstrong of the Swiss (and commentary from me) click the link to download the .pdf file

I think it is dawning on Gold critics (like Martin) that your arguments can be rock solid in your mind. You can be absolutely sure of your position that you are correct and it matters not a whit if everyone else thinks you are wrong or if people act not in the national or global interest but self interest.
You may even be actually right but it doesn't matter.
Because that herd of everyone else will put you on the wrong side of the trade.
The herd is the central banks, the politicians and the wealthy. They are going to do whatever is in their self interest and they are all short term interests with no appreciation for the longer term.

What is happening in the currency markets is not the logical answer to the worlds problems. Much the same way as Hank Paulson's decision to make the banks bigger rather than let them fail was an elegant solution in the short term the longer term problems it has, and will, create will come home to roost.

FOFOA's vision is more likely only because it takes into account peoples fear of losing their wealth. It takes into account the likely path of those who deal in really big numbers personally. It takes into account what the central bankers are likely to do when they know el Presidente is going to ask them what are they going to do. They better have an answer other than what hasn't worked so far.

It doesn't matter anymore whether you are a gold bug or not. It doesn't matter if you think gold is a "Barberous relic". If you have a brain in your head you better start hedging against the Central Bankers and Politicians stupidity.


OC15 said...

This is a great point. There are a group of us that buy physical gold and silver. Out of us there is one guy who says often, "you know what, we may be theoretically correct in the approach that we are taking but I believe that in all likelyhood the powers that be will make sure that 'protecting our wealth with gold and silver' doesn't work for us in the end; that those of us who were 'smart enough' to see what was coming are screwed just like every other average joe who held paper by some stroke of legislation."

phage said...

I don't think Martin Armstrong is really a gold critic. From what I've read he mostly rails against the notion that only gold is money, arguing that it doesn't matter what the money is just as long as the quantity is controlled.
His outlook on the price of Gold has been predominantly higher, albeit with a healthy regard for strong pull backs.

Louis Cypher said...

OC15, The argument cuts both ways. If the P.T.B. i.e. central bankers etc. start looking out for themselves rather than the greater world good then lookout below. The politicians are already doing it. In the end they can and will make all the wrong decisions for all the right reasons for themselves. The Central bankers are following suit as evidenced by CB's buying gold and the Swiss move recently. He who panics first applies at a Macro level as well.

Phage, I believe the phrase he has used as regards Gold is "enjoy your hedge" for him it's a short term play (keep in mind he thinks in years and decades). For him it's a hedge or a trade. He sees no practical use for it as Money.

GM Jenkins said...

those of us who were 'smart enough' to see what was coming are screwed just like every other average joe ... by some stroke of legislation.

I agree with your sentiment. A good rule of thumb in predicting future events going forward is to ask yourself "what needs to occur so that the hard-working, tax-paying, law-abiding citizen, the recent widow, the civic-minded pensioner, etc can be robbed most efficiently?" Because that will happen. It's a simple corollary of two indisputable axioms: "the squeaky wheel gets the grease" and "the parasitic banking oligarchy, men utterly devoid of honor, "lacking even the common virtues underneath a cultivated facade," will kill their host before they will make even the smallest sacrifice." That's why there won't be a "deflation" that makes commodities cheap relative to the dollar. That would leave a lot of (the widow's) money on the table. In this respect, gold looks like the best bet, but unfortunately perhaps the way a floating piece of plywood looks like a good bet to someone drowning in the ocean.