, IncIt will take a lot to get the price of gold in synch with the world we perceive.
July 08, 2011 - Current gold prices are underscoring a disconnect between the corporate dominated government and the sentiment of the American people. The Tea Party has awakened the electorate to the fact that our politicians are marching to the beat of their own drummer, and it is only for wont of bona fide leadership that their success in Congress has failed to bring about the change we crave.
So rather than get down to business Washington is still playing the same old games, gambling America’s future prosperity away on irrelevant issues. “Poll after poll shows that the American people want higher taxes. That's not the same as liking higher taxes. The people have simply concluded that higher taxes are preferable to the alternative,” says Froma Harrop in The Providence Journal. An “Ipsos/Reuters poll shows three-fifths wanting to raise taxes to cut the deficit.”
We know it will hurt, but we also know it is necessary. And we know that tax hikes alone aren’t a panacea. A Rasmussen poll found that public sentiment about AARP changed little after it conceded that cuts to Social Security benefits would be an acceptable component of overall fiscal reform. It would seem that America is ready to take on the challenge while the government appears intent on prolonging the pain.
Jim Grant, editor of the Interest Rate Observer, posed this question in the Wall Street Journal: “Why No Outrage? Through history, outrageous financial behavior has been met with outrage. But today Wall Street’s damaging recklessness has been met with near-silence, from a too tolerant populace.”
John Maynard Keynes gave us a clue as to what is in store: “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the forces of economic law of destruction and does it in a manner which not one man in a million is able to diagnose.”
In other words, the worst is yet to come and nobody can predict how bad it will be. It all depends on how long it takes us to stand in unison and say, “we have had enough.” Only when the pendulum finally swings back to government by the people can we expect the price of gold to again be in synch with the world we perceive.
Stewart Lawson
Senior Staff Writer - GoldPrice.net
