Gold is the Only Alternative Now!

The following from Market Watch by Tom Bemis also on 11/9/11 is only more confirmation of the quite dire circumstances the European Bankers  are in.  Their economic dilemma is quite a simple problem, i.e. to whom do they ’palm-off’ their bad-bets of the bad debts they made over the years?

In the view of the Bankers, there is only one voiceless, defenseless and clueless group of 'saps' left in all the formerly Free World – the tax payer.  And that is precisely who will be ultimately pegged for this mess – in one fashion or another.     

“Europe has been kicking the decomposing debt can down the road, but the can has hit the fan.

Investors had hoped that Greece's debt problems would be contained to Greece. They'd hoped the face-saving deal that Germany and France brokered in late October -- which cost Greek Prime Minister George Papandreou his job – would put a floor underneath the euro.

But hope is not an investment strategy. Italian opera is playing alongside Greek tragedy, and investors aren't hanging around to see which other countries join this debt-ridden production. Anyone fancy France?

The question investors need to ask is the same as always: What now?

One answer comes from David Rosenberg, chief economist & strategist at Toronto-based investment manager Gluskin Sheff + Associates. . .

"What we can expect to see is continued heightened volatility in the equity market," Rosenberg wrote. . .

And with the Federal Reserve expecting U.S. unemployment to be pushing 8% at the start of 2014 and near 7% a year later, Rosenberg suggested that interest rates would remain low for at least the next three years.

Two areas that will prosper in that environment, he said, are gold and bonds.. .”

Mr Rosenberg is absolutely wrong about 1/2 of his recommended investment positions.  Namely, as interest rates are essentially frozen for three years, the absolute value of bonds is sound, but their inflation adjusted values are guaranteed to fall and absolutely guaranteed to plummet after that when the "Bond Bubble" explodes - in a matter of days - in the not too distant future!

So, that leaves ONLY gold as the ONLY sane investment left, in light of the massive printing of money by all the World's Central Banks.  They have left no alternative investments to us, and that is quite chilling in its full context, i.e. they do fully well know that they are forcing a massive move to precious metals.