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The Income And Substitution Effect
The gold/silver story is starting to seep into the masses. It will happen slowly, but if just 5% of the masses start to buy real gold and silver and eschew the fraudulent ETFs, there will be a serious price explosion. Imagine what will happen if 15-20% of the public start buying…it will be interesting to watch the gold/silver ratio, because as both metals get more expensive, there will be a serious display of the economic law of “income and substitution effect,” and we’ll see the “silver is poor man’s gold” axiom on display in a major way. - Dave in Denver
Bill Murphy was the feature interview on RT’s “Capital Account.” The topic was manipulation in the precious metals market and the coming silver market squeeze. This is a must-watch interview: LINK
For all of us who have researched, studied, traded and invested in the precious metals market for the duration of the bull market, there is no question that JP Morgan has illegally manipulated the gold and silver market, likely on behalf of the Federal Reserve, in order to support the dollar. In the process, JP Morgan has reaped billions in ill-gotten, highly illegal gains.
In another era (see Drexel Burnham Lambert circa 1980′s), JP Morgan would have been shut down and the upper management prosecuted and sent to jail. But it’s the “new” America and it’s okay for the insider elitists to loot and pillage the system with the full complicity of the Government.
But the market does not discriminate against income or wealth levels. Sooner or later the natural laws of the market will substitute in for the artificial manipulation and control being implemented. It will be ugly for those who are short gold and silver. China and Russia are aggressively accumulating the physical gold and silver that is being dumped on the market by western hemisphere Central Banks and bullion banks. I suggest you do the same…
2012-09-06 18:13:39
Source: http://truthingold.blogspot.com/2012/09/the-income-and-substitution-effect.html
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