Tuesday, September 28, 2010

A Casey Research Remark about Gold

Here's a memo from Casey Research. I don't know if this comes to pass in the current political climate, but who knows. One thing is certain: the rise in gold has got to be a clear embarrassment to the powers that be and those who are addicted to paper instruments.

"I hesitate to bring it up, but I do think that it’s only a matter of time before the government decides that gold’s role as a barometer on its dysfunctional fiscal and monetary policies is becoming a real problem and decides to act. Unhappy with the results being revealed by gold, they will be faced with two choices – fix the underlying problems or disable the barometer. As the latter will be far easier to accomplish, literally with some overnight administrative rule change voted on by no one, that has to be the logical choice.
I don’t see it happening imminently, but that, too, is something we’ll be watching closely.
Until tomorrow…
David Galland
Managing Director
Casey Research"   

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