The Fiscal Cliff … Waiting to Hear from Chairman Bernanke

by Yra Harris 


Dear Yra,

Once you securitize gold you have created an acceptable form of a new currency that will compete with the present fiat system. Yes, a bond could act in the marketplace as a currency under present circumstances.

Is not gold itself today acting as the three criteria for the classical definition of a currency? Securitization of gold in one form or another will come, but only as crisis mode is approached.

When have financial leaders ever lead? They follow the flow, kicking and screaming, and this time towards gold.

This makes this market in gold much different from 1968 to 1980 March.


The Fiscal Cliff … Waiting to Hear from Chairman Bernanke

The key policy maker who raised the issue of the fiscal cliff back in April 2012 has been missing in action from the discussion. It is widely understood that the FED is not supposed to involve itself with fiscal policy, but that proposition was violated when the FED chairman voiced great concern about the failure of Congress to halt the potential drag on the economy. The FED has continually supplied the liquidity as the “only game in town” but it seems obvious that the great enabler of Congressional “benign neglect” should offer some guidance while not overstepping its mandate. More members of the G-20 were out over the weekend warning about the potential disastrous effects of a fiscal calamity in the U.S. on a very fragile global economy. What will it be Ben? I say yes, you say no. Bonds say buy and stocks say sell. Congress says goodbye. Will the FED say hello?

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