The Obama administration is considering devaluing the dollar in an effort to relieve the US debt crisis. If this occurs, this will ultimately result in rising gold prices.
Author: Dominique de Kevelioc de Bailleul
Posted: Wednesday , 04 Jan 2012
MINEWEB
Tyler, TX (Beacon Equity Research) -
Thinking the gold market has seen its best days? Not a chance, if the Fed and the Washington pathocrats get their way.
Speaking at AmeriCatalyst 2011, in November, hedge fund manager extraordinaire Kyle Bass of Hayman Capital Management LP told attendees he was given one of the strategies for reviving a dying U.S. economy. It involves devaluing the U.S. dollar to affect renewed export demand.
No surprise there, really, as the playbook for mature economies, strapped with bizarre levels of public and private debt, deficits and stagnant employment, always opt for trashing the currency to make good on debt promises.
"The government's idea right now is we are going to export our way out of this," Bass said with a grin. "And when I asked a senior Obama administration official last week how are we going to grow exports if we won't allow nominal wage deflation, he said we are just going to kill the dollar."
Gold should soar in the coming years as the cat can no long be contained in the bag, even too obvious to the most financially illiterate among us. How the Fed will explain a continuation of rising food and energy costs should prove interesting.....
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