From the website Signs of the Economic Apocalypse:
Gold continued its rise, closing at 556.90 dollars an ounce on Friday, up 2.7% from $542.20 the Friday before....Besides gold, everything in the numbers looks pretty normal. Gold, however, has risen 10% since Christmas.
As most of you are aware, there are a number of bearish omens hanging over US economy and stock market for 2006. Here is the list,off the top of my head:
1. Rising short term interest rates
2. Inverted yield curve
3. Housing bubble slowdown/pop in the works (...)
4. Massive slowdown and/or bankruptcy at GM and/or Ford on the horizon
5. Rising unemployment in home building, financial services, and manufacturing due to 3 & 4
6. Rising energy costs
7. Corresponding slowdown in consumerism due to 5 and 6
8. Stock market's four year / presidential cycle pointing down
9. Rising trade deficit
10. Rising budget deficit
11. Rising national debt
12. New Iranian oil bourse in the works to price oil in euros this spring
13. Falling dollar as a result of most of the above, but especially #12
14. New guy on the job at the Fed to deal with all of the above.
I e-mailed quotes and links to the above article to an econ buddy of mine and here's a partially edited response I received:
The thing of it is: a massive re-alignment of economies is going on, and these figures he's citing (like the blast-off of M3) are just exterior and vague signs of profound processes underneath the surface.
This isn't conspiracy theory, although to an untrained reader it would surely look that way. The world is changing, and it's not to the good of the United States or its citizens, who are in for quite a taste of Hell as that roller coaster takes a couple of little dips in the frying pan over the coming few years.
The only good news is that Americans have become so desensitized, intellectually incurious, and pointedly stupid that they won't notice a whole lot. They'll be able to digest a semi-mythical, simplistic story the news media will feed them, and that's okay, since the alternative would be to get them to understand things way beyond their latest fix of TV, sports, radio, and imaginary sexual fulfillment.
For a quick daily check of silver, gold, and platinum, click on Bert Blumert's Gold Page.