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Elliott Wave International
Traders & Investors Club Meeting - 16th November 2010
Another day, another cool 600 million dollars created out of thin air. Or "quantitative easing" if you prefer.
Desperate times call for desperate measures and if you were the US Government sitting on a national debt of 13 billion dollars, that's $13,000,000,000,000, or $44,000 for every US citizen, you too might be very keen to drive down the value of your currency before you have to start repaying your debts.
If QE2 does not have the desired effect, the US Government is surely out of bullets.
Or, is it...............?
A hitherto unnoticed clause in the recently passed Health Care Bill requires details of all gold bullion transactions exceeding $600 to be reported to the IRS.
Why is this a cause for concern in many quarters?
In 2012, when the new rules take effect, the IRS will be in a position to catalog the private gold holdings of US citizens.
It is interesting to note that in 1933, unemployment was rising and the newly-elected Democratic president, Franklin Roosevelt, introduced a bill that greatly expanded the role of state welfare. Greedy bankers were blamed for the economic crisis and the Glass-Steagall act was passed as part of the New Deal legislation. Under the authority of the Emergency Banking Relief act, the Government confiscated most of the privately-owned gold in the US.
Of course, such a thing would never happen today..................
But, as an Arab friend of mine is wont to remark, "Trust in Allah, but tie up your camel".
Our next meeting is another one that you can't afford to miss.
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