Many chided him for his miserly ways, teased him as an economic 'chicken little,' and some even thought him crazy. Me included.
Look whose laughing now:
"April 25 (Bloomberg) -- Silver climbed to an all-time high as investors sought to protect their wealth against accelerating inflation and a weaker dollar. Gold also rose to a record.And gold continues its record rise:
Immediate-delivery silver jumped as much as 5.4 percent to $49.79 an ounce, beating the previous peak of $49.45 in 1980, according to research company GFMS Ltd. Gold futures in New York climbed to a record for a sixth consecutive session
Precious metals have rallied on investor speculation that central-bank programs to revive economic growth with low interest rates and increased supply of money will ignite inflation and devalue currencies including the dollar. Silver is the best performer over the past year on the Standard & Poor’s GSCI Index of 24 commodities, ahead of cotton, coffee and sugar.
In other words, more hot air from slavish sycophants and pandering politicians addicted to their own power and prestige.
The dollar dropped against the euro on speculation that the Federal Reserve will keep borrowing costs near zero while European Central Bank officials signal further rate increases. Fed Chairman Ben S. Bernanke will hold a media conference after the Federal Open Market Committee statement on April 27 after a two-day meeting in Washington."
Any Econ 101 student should've learned that paper money, in and of itself, has no intrinsic value. It's simply a marker. An indicator of faith in the system that prints it. Land, durable goods, government stability, machine tools, raw materials, consumer products - plus gold and silver - are the real valuables in a society.
Obviously, with its gargantuan debt load, coupled with a crippled economy, and the current administration's eagerness to exacerbate both situations, faith in the current govt. and economy of the U.S. of A. is not worth much to the rest of the world. Some say this is by design.
Anybody seen Geo. Soros?
But I digress.
I wonder how well diamonds and platinum are doing?
Update: added new chart