The Panic Is Palpable

I have been almost able to taste the fear in the market over the past few days. The American public is slowly awakening to the fact that our banking system is insolvent.

I think we have to be near a short-term bottom in the stock market, but then what? We will experience accelerating bank failures over the remainder of the year and our Government tells us there is no recession currently, inflation is low, and Fannie Mae and Freddie Mac are well capitalized.

I thought that the Emperor Has No Clothes was just a children's story? The older I get, the more I realize that so much that we can count on each and every day is just an assumption. An assumption that the money we put in the bank is safe from credit risk. An assumption that money we save will maintain its purchasing power without being ravaged by inflation. And finally an assumption that our elected and appointed officials including and especially the Federal Reserve are looking after our best interests.

Here are a couple interviews where Jimmy Rogers lays it out there plain as day:

Bloomberg Interview

CNBC Asia Interview

It's sad that the interviewers have so little grasp of the depth of the issues they are discussing with Jim. It's even sadder that we can't have people in government who can handle problems like we are experiencing in this straight up of a style.

Got Gold?

Best regards,

BG