The government printing presses are running at full tilt. Hedge fund manager Bill Fleckenstein makes a good case for owning gold.
I’d like to take a few moments to talk about the Federal Reserve’s latest act of irresponsibility in a continuing series of irresponsible actions (i.e., buying $300 billion in longer-term Treasurys, an additional $750 billion in mortgage-backed securities and — just for grins — $100 billion of government-sponsored-enterprise debt).
As a friend noted, Wednesday was the functional equivalent of Pearl Harbor for the U.S. dollar and fiat currencies in general. He said — referencing that people might pay less for their mortgages — that they’ll pay much, much more for everything else. I would certainly agree.
If you’re at least open to the idea that the government can’t fix all problems, you should read this article from Bill. If you like it, I suggest reading his other postings. Bill called this whole financial fiasco.
- No, I didn’t follow his advice
- I’m not getting any money for saying this
- I don’t know Bill, but there’s no doubt that he has a very sharp mind
- I did subscribe to his daily “rap” for awhile, but it’s been well over a year since my subscription ended.
