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Ponzi Casino Capitalism Discredited- Risk of Global Monetary Crisis

Commodities / Credit Crisis 2008 Sep 22, 2008 - 10:29 AM GMT

By: Mark_OByrne

Commodities Gold and silver surged last week (up 13% and 15% respectively) as the financial crisis deepened considerably and there was a realisation that the  " ponzi " casino capitalism of recent years has critically wounded the U.S. financial system and done serious damage to the global financial system. Gold surged from below $780/oz to close at $861.40 on Friday and has risen again in European trading today to over $882/oz.


A likely close above $900/oz in the coming days should see us rise to $1,000/oz in the next few weeks and possibly sooner than even the very bullish expect.

Even after stocks incredible surge on Friday they remain ed flat for the week  (Dow, S&P and Nasdaq) and are set to come under pressure in the coming weeks as the ramifications of the trillion dollar bailouts gradually seeps in.

The dollar, the reserve currency of the world, is also likely to come under serious pressure again as the epicentre of the crisis remains on Wall Street and in the U.S. financial system. Some notable commentators have rightly warned of the possibility of a U.S. default on it's huge debt obligations. Given the extent of financial contagion a dollar crisis and wider global monetary crisis is not beyond the bounds of possibility as the unthinkable increasingly becomes more thinkable.

New World Financial and Economic Order
Gold's safe haven credentials are again coming into their own as the modern incarnation of the global financial and capitalist system is creaking at the seams after years of dangerous "Disney land" leveraged finance. It is arguable that systemic risk has never been as high as this (even during the Great Depression) and unfortunately conditions, particularly in the wider economy are set to get markedly worse before they get better.

Financial contagion is spreading throughout the financial system and most worryingly, it is spreading from Wall street to Main street and on to the global economy. This can only be bullish for gold and those who fail to see this have little comprehension of monetary and economic history and our modern monetary system.

This is not economic Armageddon but rest assured that the old world financial and economic order is gone and will be replaced by a new world financial and economic order - where frugality, savings and prudent investments will be rewarded and leverage, speculation and irresponsible risk taking will be unacceptable. The Anglo Saxon Disney finance of recent years has been wholly discredited and there will be a shift in power towards more sustainable and prudent European and Asian models.

In the light of the continuing deterioration of the financial system and the increasing risk of contagion in the financial system and the wider global economy, gold remains very undervalued and will continue to outperform other asset classes in the coming weeks and months.

By Mark O'Byrne, Executive Director

Gold Investments
63 Fitzwilliam Square
Dublin 2
Ireland
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Gold and Silver Investments Limited
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EC3V 3ND
United Kingdom
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Email info@www.goldassets.co.uk
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Gold and Silver Investments Ltd. have been awarded the MoneyMate and Investor Magazine Financial Analyst of 2006.

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Gold and Silver Investments Limited hope to inform our clientele of important financial and economic developments and thus help our clientele and prospective clientele understand our rapidly changing global economy and the implications for their livelihoods and wealth.
We focus on the medium and long term global macroeconomic trends and how they pertain to the precious metal markets and our clienteles savings, investments and livelihoods. We emphasise prudence, safety and security as they are of paramount importance in the preservation of wealth.

Financial Regulation: Gold & Silver Investments Limited trading as Gold Investments is regulated by the Financial Regulator as a multi-agency intermediary. Our Financial Regulator Reference Number is 39656. Gold Investments is registered in the Companies Registration Office under Company number 377252 . Registered for VAT under number 6397252A . Codes of Conduct are imposed by the Financial Regulator and can be accessed at www.financialregulator.ie or from the Financial Regulator at PO Box 9138, College Green, Dublin 2, Ireland. Property, Commodities and Precious Metals are not regulated by the Financial Regulator

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. Past experience is not necessarily a guide to future performance.

All the opinions expressed herein are solely those of Gold & Silver Investments Limited and not those of the Perth Mint. They do not reflect the views of the Perth Mint and the Perth Mint accepts no legal liability or responsibility for any claims made or opinions expressed herein.

Mark O'Byrne Archive

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