New York (PRWEB) January 19, 2006
According with http://www.investmentu.com , Ben Bernanke (a.k.a. “Helicopter Ben”) -- who takes over from Greenspan in less than two weeks’ time -- earned his nickname when he suggested dropping money onto household lawns from helicopters. In his own words:
“The U.S. government has a technology, called a printing press, which allows it to produce as many dollars as it wishes at essentially no cost.”
It may not cost the government much, but cranking up the money machine costs Americans plenty, as it dilutes the dollar.
This, in turn, continues to impact gold prices. In fact, since Bernanke’s nomination as our next Fed Chairman, gold has gained 15.9% and recently hit a 25-year high.
“We believe that now is a good time to buy gold. The fundamentals spell a strong bull market for gold, and Bernanke is certainly doing his part to fan those fires with his weapon of choice -- the printing press,” says Rich Checkan, advisory panelist for Investment U, a free, educational, financial e-letter with more than 275,000 subscribers.
What’s behind Bernanke’s willingness to ramp up the money supply?
His problem is that he’s facing government deficits in excess of $8 trillion. That’s about $27,000 for every man, woman and child living in the United States. And it’s growing… Secretary John Snow has just asked Congress to raise the national debt ceiling, which 14 months ago was set at $8.1 trillion.
So what does a Fed Chairman do to get control of the largest debt in all of history? Simple: devalue the currency and you devalue the debt.
As the Fed starts flooding the market with new dollars, the price of gold will continue its march upward.
How high can we expect gold to be driven by this unending supply of new money?
We could see gold reach more than $3,000 an ounce. If that sounds outrageous, just consider that gold’s all-time high was $850 in 1980. Adjusted for inflation, that’s $2,159 an ounce. Advisory Panelists for Investment U agree: The likelihood of gold surpassing its all-time high is not only likely, but a highly conservative estimate…
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