Tuesday, September 25, 2012
The Hate trade
Now that QE Infiniti is the official policy of the US and will soon be so in Europe (Unless Germany would rather see the Euro unravel) - the question is: What will drive gold's next leg up?
Answer: The Hate trade.
Hatred is so palpable in public anti-discourse, both domestic and international - that mutually assured destruction had become an incentive rather than a deterrent - Think the Fiscal Cliff.
And War had become the answer to all problems: Think Iraq, Afghanistan and soon Iran, Egypt, Libya and Israel.
Congress has but one mandate: each party must destroy the other party.
The Banks have but one business model: suck all the capital out of the economy.
Network news has but one idea: Entertain us.
Talk Radio and Cable TV have but one chilling mission: earn money by spreading Hatred towards The Other. Them.
And everyone blames the Fed (including me), without whom this whole mess would have imploded years ago.
Unfortunately, if it had, we'd at least be on the way to some sort of desperation-born discourse.
Because two months from an election and the whole electoral process has been marked by an astonishing absence of discourse, on all sides.
So, if this sounds unrealistically bleak, you can cling to the idea that gold is in a bubble ready to burst at any second.
If not, you're running out of time to pick up the only financial shelter from the Hate Trade: Gold.