Friday, September 24, 2010

Gold touches $1300 per ounce, commodity prices soar

As my readers well know I am a gold and silver bug today is a happy day!! Silver has been on a rampage as it has broken its March 2008 high and has touched $21.40 per oz. I actually want silver to tank a few more times so I can buy more on the cheap :)

On the other hand, as a result of Bernanke's monetary madness "paper money" is beginning to flow into hard assets, such as corn, copper, wheat, pork, nickel, iron ore, etc. Corn is up 4.41% today on NO news whatsoever. Wheat is up 3.3% also for no "apparent reason". There is no big shortage or huge trade war headline that would cause traders to panic. Instead, investors and speculators are beginning to realize that the feds monetary experiment will end up as a catastrophe. Please ignore the establishment mainstream pundits who curse gold daily as a "barbaric relic". Gold is money, and will remain money. In the end, paper money will return to its intrinsic value which is ZERO.

The worst part about all this inflation hoopla is that the poorer and middle classes are going to get squeezed into the ground. Wages are falling while commodity prices continue to rise. That is a disaster in the making. The cost of goods for the restaurants I manage continue to creep up month after month while I have put INSANE specials and discounts to lure in the unemployed or underemployed customer base. Even the fully employed are scared to splurge on our more expensive items as they have realized that there is NO such thing as job security in America anymore (unless you work at the Fed lol).

Watch prices rise at the supermarkets and restaurants as the printing presses rage out of control. At least the stock market continues to rise higher for the 1% of US households that own 80% of said stocks. The bottom 90% suffer at the expense of the top 1%. Eventually it will be up to us the sheeple to stop this madness.

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