Gold Hits Record, Again
The 220 kg Gold brick displayed in Taiwan
The price of gold rose to over USD$1340 per ounce today.
Gold futures topped $1,340 an ounce Tuesday, posting their highest-ever price as investors fled paper currencies in favor of the metal as a perceived store of value.
The moves come amid growing expectations the Federal Reserve will embark on another round of monetary easing as other central banks soften their policies in what some see as leading to currency devaluation and longer term increases in consumer prices, which gold is considered a hedge against. (Gold, Seen As Currency, Extends Record Above $1,340. Wall Street Journal – Oct 5, 2010 http://online.wsj.com/article/BT-CO-20101005-708369.html)
Investors around the world are essentially afraid that the US dollar ultimately will have much less value than it currently has, thus many are investing in this commodity.
The powers that be in Europe are holding on to gold:
Europe’s central banks have all but halted sales of their gold reserves, ending a run of large disposals each year for more than a decade. (Financial Times – Sept 27, 2010. http://www.cnbc.com/id/39376353)
Silver is also up. It was USD$22.89 per troy ounce when I looked at it a few moments ago (for the more current price of gold and silver, please simply click on the following Financial Information).
Economists which are not part of the Obama Administration have made some comments lately that perhaps should be mentioned here:
Economists peddling dire warnings that the world’s number one economy is on the brink of collapse, amid high rates of unemployment and a spiraling public deficit, are flourishing here.
The guru of this doomsday line of thinking may be economist Nouriel Roubini, thrust into the forefront after predicting the chaos wrought by the subprime mortgage crisis and the collapse of the housing bubble.
“The US has run out of bullets,” Roubini told an economic forum in Italy earlier this month. “Any shock at this point can tip you back into recession.”…
Boston University professor Laurence Kotlikoff, who warned as far back as the 1980s of the dangers of a public deficit, lent credence to such dark predictions in an International Monetary Fund publication last week.
He unveiled a doomsday scenario — which many dismiss as pure fantasy — of an economic clash between superpowers the United States and China, which holds more than 843 billion dollars of US Treasury bonds.
“A minor trade dispute between the United States and China could make some people think that other people are going to sell US treasury bonds,” he wrote in the IMF’s Finance & Development review.
“That belief, coupled with major concern about inflation, could lead to a sell-off of government bonds that causes the public to withdraw their bank deposits and buy durable goods.”
Kotlikoff warned such a move would spark a run on banks and money market funds as well as insurance companies as policy holders cash in their surrender values.
“In a short period of time, the Federal Reserve would have to print trillions of dollars to cover its explicit and implicit guarantees. All that new money could produce strong inflation, perhaps hyperinflation,” he said.
“There are other less apocalyptic, perhaps more plausible, but still quite unpleasant, scenarios that could result from multiple equilibria.” (Doomsday warnings of US apocalypse gain ground. AFP – Sept 11, 2010. http://www.google.com/hostednews/afp/article/ALeqM5guQwaDcJjALF1jtUfqcyIgRU7U1Q)
IMF admits that the West is stuck in near depressionIf you strip away the political correctness, Chapter Three of the IMF’s World Economic Outlook more or less condemns Southern Europe to death by slow suffocation and leaves little doubt that fiscal tightening will trap North Europe, Britain and America in slump for a long time.
Notice, also, the following:
And the view that America is on a decline seems rather well ingrained in many people’s minds supported by 65 percent of people questioned in a Wall Street Journal/NBC poll published last week.
“It is true: Today’s economic problems are structural, not cyclical,” argued New York Times editorial writer David Brooks.
He said the United Sates is losing its world dominance much in the same way the British Empire began to crumble more than a century ago. ( http://www.google.com/hostednews/afp/article/ALeqM5guQwaDcJjALF1jtUfqcyIgRU7U1Q)
The above contained several interesting observations.
The USA is losing its dominance over international finances. It is declining like the British Empire did. And the USA will also lose its military dominance when it does not expect it. Political economists sometimes seem to have overlooked the economic realities of producing more US dollar debt and printing up more un-backed US dollars.
As far as metals go, while what goes up can come down, the reality is that even if gold and silver tank (and they may or at least drop at times), the Bible shows that they will have value into the great tribulation (cf. Daniel 11:40-43; Revelation 18) while the US dollar will not (cf. Habakkuk 2). The financial world is starting to understand some of this–but few really know how bad it will get.
For additional information, check out the following articles:
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
Can the Great Tribulation Begin in 2010, 2011, or 2012? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord?
Prophecies of Barack Obama? This article has eight reasons why Barack Obama is apocalyptic and eight reasons why Barack Obama is not the Antichrist. It includes many biblical and non-biblical prophecies, from around the world, that seem to discuss Barack Obama. Did Nostradamus predict Barack Obama dealing with the Antichrist? Might Barack Obama set the stage for the kings of the North and South as at least one Shiite prophecy suggests? This is the longest and most complete article at the COGwriter website on Barack Obama prophecies. Read it and decide for yourself if President Obama seems to be fulfilling various prophecies.
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Will the Anglo-Nations be Divided? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people?
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