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The Money Printing Ritual Goes On
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
dailyreckoning.com.au / By Bill Bonner / April 13, 2013
These are certainly days of miracle and wonder. Well, of absurd and extraordinary financial experimentation, at any rate.
Last week, for example, saw the Bank of Japan abandon any last pretence of restraint and topple headfirst into a gigantic pile of monetary cocaine.
The scale of the policy is daunting: the Bank of Japan intends to double the country’s monetary base over two years via the aggressive purchase of long term bonds.
It would be difficult to overstate the drama of thismonetary stimulus (although we favour the word ‘debauchery’).
Yet as the Japanese monetary authorities declare a holy war against deflation, it would only be fair to draw attention to the colossal opportunity being presented as the antidote to monetary intemperance, namely gold and gold miners.
There is a clear mismatch between the prices of gold and silver mining shares and spot prices of gold and silver. But as to why the miners are trading so poorly relative to the physical is unclear to us.
It may be because the market expects the price of gold and silver to fall (not a belief to which we subscribe, given current monetary events for example in Japan).
Thanks to BrotherJohnF
2013-04-13 06:01:45
Source: http://silveristhenew.com/2013/04/13/the-money-printing-ritual-goes-on/
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