Just a short note
Following my last missive on gold: it’s up 14% since then ( less than a month ) and it will probably go higher still. Compared to the deluge of paper money in the world gold is substantially undervalued. My raison du jour why I think gold is still on the up: as expected, President Obama has decided to send another 30,000 US troops to Afghanistan. This will cost the Americans about 30 billion usd p.a. and the total annual cost of the Afghanistan war is now well in excess of 100 billion. This is money the US doesn’t have and eventually the Fed’s printing presses will have to roll to issue more green paper. If the war would make any sense the sacrifices could be justified. But it makes even less sense than Vietnam did in the 60ies. Obama says: we were attacked from Afghanistan ( 9/11 ), but in fact nearly all attackers were Saudis, plotting from Hamburg, Germany. Obama seems to touch all the wrong buttons: in Israel he demanded an end to settlements and when Netanyahu ignored him he just let it be, in war matters he goes along with the generals’ wishes, at home he subsidizes the fat cats of Wall Street and the dinosaurs in Detroit. His treasury secretary “Little Tim” Geithner has lost all credibility.
That’s why gold is hot, very hot. Some may even get their fingers burnt.