For those of you stupid enough to believe that the economy is turning the corner and we are all going to be rich, fat and happy from now on, here is a little reality pill for you.
On November 3 2008:
Gold closed at $730.00 per ounce
Silver closed at $9.90 per ounce
Platinum closed at $820.00 per ounce
Crude Oil was $70.00 a barrel
How do we compare to with today (6/5/09)?
Gold opened at $963.00 per ounce
Silver opened at $15.20 per ounce
Platinum opened at $1,263.00 per ounce
Crude Oil opened at $67.00 a barrel
With the government printing trillions of dollars of cash to prop up our economy the dollar's value drops on world markets. Therefore benchmark exchanges like gold and silver rise. Oil is a bit different as production can vary based on supply and demand and a few other events like a hurricane in the gulf or a tanker being attacked in the middle east.
The honeymoon here is that we haven’t had to pay for this economic fix yet. It’s like getting a new credit card with a twenty grand limit. You max it out the first week, you go on vacation, buy a big screen TV and a hot tub, and then the first bill shows up three months later. Now what? Every president and his administration has had the ability to handle this economic crisis the way President Obama has. The reason they didn’t is that it is beyond stupid and self destructive. Most economists say it is purely economic suicide.
It’s getting close to where we need to invest in bullets and camping gear and get ready to go hide in the woods. Don't buy the property because then you are a land owner and a potential stream of tax revenue. Start a garden and learn to live off the land as our money is loosing value so fast that per sheet it may soon be worth less than a sheet of toilet paper.Makes you want to keep those old softer dollar bills doesn’t it!