Martin Armstrong (in the essay below):
GOLD is the hedge against government as we are seeing now – not inflation … [Gold] runs in bursts of energy because it is the alternative to official MONEY when the full faith and trust in government is lacking.
I take it the ignoble laureate hack Paul Krugman doesn't read Armstrong. In his latest NYT blog, he approvingly quotes a fellow dunce, who, satisfied that the price of gold hasn't correlated with inflation for the last fifteen years, smugly concludes "I don't see any reason to care about the price of gold," and goes on to pin the blame on … advertising to conservatives. Krugman, objecting that his fellow dunce has not gone quite far enough, takes him one step further, singling out the one man responsible for the 10-year secular bull market in gold … go on, guess ... yup, Glen Beck. Alright then, nothing to see here, please disperse.
The irony is, even if Krugman and his fellow dunce were correct to blame gullible conservatives for the increase in the price of gold, their conclusion ("I don't see any reason to care about the price of gold") still wouldn't follow. Let me explain why.
I got a few tubes of Franklin half dollars todayThis coin is almost all silver - essentially a smaller silver eagle. As an aside, you can't handle a coin like this -- just fifty years old -- drop it and hear the sweet silver ping, then hold one of these:
an effect can become a cause, reinforcing the original cause and producing the same effect in an intensified form