Economy

David Stockman unloads on Neil Cavuto.

"It seems everybody on both sides of the aisle hates his new book called “The Great Deformation.” That tells me he’s doing something right. The interview ends with Host Neil Cavuto saying, “On that happy note, if you have a syringe, you can now stick it in your eye.” But that quote has been cut off on all the videos I saw. (I saw it live and recorded it on my DVR.)"

While Stockman isn't a hard-core libertarian, he's definitely coming around to that viewpoint, but the wonderful thing about him is, since he's one of the establishment, at least so far, he can get on all these shows. That won't last long.

A fall in gold prices supposedly brings down the market. Baloney. I can understand why people would think a slowing economy in China would slow its accumulation of gold, but a slowing Chinese economy would also bring down US markets. So would bad economic data. So would a terrorist attack in Boston. It's funny this article blames gold. Check out the manipulated gold price chart showing an upside-down hockey stick in the article. This is a distraction to keep people buying bonds, not gold, to cover up our real economic problems.

"The shift in gold’s fortunes presents a moment of reckoning for many so-called gold bugs, who had expected their financial lodestar to continue moving up in response to the Federal Reserve’s effort to stimulate the economy through bond-buying programs.
The assumption among gold bugs was that the flood of new money would cause inflation, making hard assets like gold more attractive. So far, though, there have been few signs of inflation taking root even as central banks in Japan and Europe have begun their own aggressive bond-buying programs."

There's the answer right there. Central banks are manipulating bond prices to keep yields low, and because bonds compete with gold as a safe haven, gold is going down. What this article doesn't say is central banks are selling gold short in concert with bond manipulation to keep government bond yields low so government can amass more debt before getting wiped out. The drop in gold prices is a buying opportunity. I'm not a gold shill, I don't know enough to be one, but great minds still recommend gold. I think we're likely to see deflation before hyperinflation, but gold lost very little value in 2008.