by James Howard Kunstler, SilverBearCafe.com:
Where on earth did Paul Krugman get the idea — expressed Monday morning — that ours is “a weak economy?” The Dow Jones Industrial Average is about to scale previously uncharted heights and the Standard & Poors Index is piling onto its molehill, too. If stocks are up the economy can’t be weak since stock markets = the economy. All the efforts of the Gitchi Manitou behind the operations of money, the Federal Reserve, are bent toward inflating the stock markets, including now the novelty of outright strategic stock purchases, so these stock markets must hold the secrets of economic life.
Notice, the Federal Reserve is not inflating the precious metal markets. Rather, they might be inclined in the deep background to militate against them, or even engage in coordinated subversion of them. It would be convenient for the Fed if the public, increasingly befuddled by the absence of yield, the mis-pricing of risk, and the antics of Larry Kudlow, would just let go of its delusion that yellow and white metals had any intrinsic value — after all, you can’t eat them, can you? The weight of opinion is also against gold and silver. The redoubtable Martin Armstrong is even inveighing against them because, as he put it, these things trade only on the technicals, not fundamentals.
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