The rush begins as people realize fiat currency being mass printed for trillions of dollars of U.S. national debt is inflationary at best, worthless at worst.
Lets put some stories together today, shall we?
NYTimes: Markets Close Lower Over Worries Of Bank Nationalization
NYTimes: Foreign Investors Wary of Long-Term U.S. Securities
WSJ: Let’s Go Back To The Gold Standard
WaPo: U.S. Stocks Erratic On Nationalization Worries
Or how about this little ditty from LaTimes:
Gold has been on a tear since mid-January, when it was trading at $808 an ounce. It isn’t exaggerating to say that some people are turning to gold because they’ve lost faith in nearly everything else: the economy, the financial system, real estate, the stock market.
Precious metals are benefiting from the panic sense that “everything else has been destroyed,” said Leonard Kaplan, head of money manager Prospector Asset Management in Evanston, Ill.
Yes, that’s overstating reality. But with the Dow Jones industrial average down more than 15% this year, it’s understandable that many investors fear that things are continuing to go very wrong.
The factors driving gold “are the same as last year — just more dire now,” said Larry Young, a trader at Infinity Futures in Chicago.
What’s more, in the last two days, the dollar — which competes with gold as a hiding place for worried money — has begun to show signs of cracking. The DXY index, which measures the dollar against six major rival currencies, has slipped 1.7% since Wednesday.
Gold’s rally a year ago halted in part because the dollar began to surge. If the greenback is headed lower this time around, gold could be left standing alone as a haven.
These stories represent a common thread: investors are not liking Obama’s socialist policies are and pulling their funds in the event they have to go John Galt. In other words, the media is lying to you. The markets are not continuing to fall because they are worried that the “stimulus” won’t be enacted fast enough. They are free-falling because the “stimulus”, the socialist takeover of our free market system, has happened at all.
AP: Major Indexes Fall On Stimulus Fears
Gold, guns, diamonds and food reserves I’m telling ya. It’s time to protect your family, even if you have to start small.
Glen Beck- Just How Much Money Is The Federal Reserve Printing?
Excellent post Luke, Actually just found this a few days ago and we are pretty much on the same wave length. Ive been libertarian since I was in my teens and have seen all this coming for years. We can only hope that these messages get out and the people smart enough to realize what is going on before it is too late. I read Atlas Shrugged when I was 17 and confirmed that not only an I not crazy, but completely right.
Comment by MIchael -TX — 02.21.2009 @ 15:46:11
Thank you, truly. I value everyone who has benefited from this blog. I was concerned at first about people’s perceptions of the libertarian message. But as I have found, especially in the last 4 months, we have the “silent majority” on our side. Libertarians need only to be able to articulate WHY and HOW their theory works, and I believe we are ripe to grow our numbers like never before.
If you have a blog, feel free to post a link. Above all else, as libertarians and followers of John Galt, we must follow the path of mutually beneficial transactions. I guess what I mean is, if you have a blog, as a reader, I will add it to my blogroll. = )
Thanks again, and feel free to keep the comments rolling.
In Liberty,
Luke
Comment by Luke — 02.21.2009 @ 17:53:46