Central Banks Selling Off Their Gold Reserves | The One Sure Safeguard.

May 9, 2009 | By | Reply More

Long gold – short article. No point in keeping on going over old ground.

The facts are simply stated. The US, ECB, UK and many other nations are continuing to pump new money into their financial systems in the hope that more borrowing will be stimulated to get economies moving forward.

It was borrowing in excess that got us into this mess so how can more borrowing be anything than, at best, a very short-term respite?

Even worse central banks and the IMF, with the honourable exceptions of Germany and Italy have been selling off their gold reserves, the one sure safeguard against the soon to be rapidly increasing erosion of paper currencies.

Will the public take on increasing debt, irrespective of rock bottom interest rates, when their jobs and lifestyles are at risk?

Yes, they probably will as a sucker is born every minute.

When the inflation lying latent in our economies gains momentum they, the buyers of government paper which sadly includes central banks, and those stock market investors who think that they have been picking up bargains as they perceive the “green shoots” of recovery are evident, find that their optimism is about as stable as a burst balloon, that the “green shoots “are withering and dying, will realism then become the order of the day?

Probably not, as politicians will continue to use every PR trick and untruth at their disposal to fool poor old ‘Joe Public’ in order to keep themselves and their acolytes on the gravy train.

Most of the rest of us, particularly young adults, will just have to face up to and adjust to new circumstances, changing lifestyles and even hardships, as inflation bursts to the surface.

At least those who have been able to put money aside into physical gold and silver, ETFs backed by the metals or invested wisely in gold or silver coins will have a measure of insurance against the coming crisis.

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