The more things change, the more they remain the same.
I’ve said it before, and I will happily say it again. Gold’s rise is in large function a result of debt and the ever multiplying nature of how debt is a driver in consumption and governmental programs.
This is to say that nothing has changed. Our governments continue to push more debt as a solution to the problems that brought us to this costume ball. Which, as I write, reminds me of the short story by Poe, The Mask of Red Death. Why? I don’t know, I guess I’ll need to go and re-read it, but the imagery and tone of that story is what the current economic climate reminds me of.
Here’s the opening paragraph:
THE “Red Death” had long devastated the country. No pestilence had ever been so fatal, or so hideous. Blood was its Avatar and its seal — the redness and the horror of blood. There were sharp pains, and sudden dizziness, and then profuse bleeding at the pores, with dissolution. The scarlet stains upon the body and especially upon the face of the victim, were the pest ban which shut him out from the aid and from the sympathy of his fellow-men. And the whole seizure, progress and termination of the disease, were the incidents of half an hour.
This morning the stock market is looking just as choppy as gold, which is at $1,778.60 looking at the free ExactPrice widget.
Keeping in line with the thought of debt today, I’m going to start out with two items twittered by .
Capital One U.S. credit-card delinquencies rise <- Well, that’s to be expected.
Government Mortgage Insurer Continues to Lose Cash Reserves <- The FHA. Go figure.
CFTC gets closer in MF Global fund mystery – official <- I continue to think that the MF Global debacle is going to be one of those things we look back and point to as one of the turning points.
Russian Central Bank Aims to Buy 100 Tonnes of Gold in 2011 <- Via Ed Steer. If they’ve made this announcement, I believe you can probably take it to the bank that they’ve already purchased the 100 Tonnes. No one in their right mind makes that kind of announcement ahead of buying that much.
Gold soars to a new high in India as wedding season gets underway <- Set new high in Rupee.
Martin Armstrong – Gold Upside Take Off Only Months Away <- That’s a pretty specific forecast. Of course he notes like I have the factor of DEBT!
Death-ficits <- Good read from Greg Hunter. And it is again a theme of DEBT!
Keynote Speech At Sydney Gold Symposium 14-15 November 2011 By Alf Field <- This is an intriguing read on Jim Sinclair’s MineSet.
Clarification on Alternative Realities <- Read the intro into this Casey Research Daily. Deals with some of the risks in gold.
Gold marking time – rangebound trade continues <- Analysis from Trader Dan.
Gold Futures Trim Losses As Italy Debt Woes Linger <- HT to @lmgross and note again that we’re talking DEBT!!!