"Uncertainty" Really?

Talk abounds currently in the U.S., indeed globally, about market "uncertainty," as if the talking heads have been given uncertainty as a talking point. These pundits want the rest of us to believe that the invisible hand of the market is, for some mysterious reason, "uncertain." And because of this "uncertainty," the market is buying precious metals, such as gold and silver, the prices of which, in terms of US dollar and other fiat currencies, are breaking new highs daily.

I disagree. I think those international investors getting out of fiat credit faith based currencies and trading them for PMs are anything but uncertain. Helicopter Ben Bernanke has come right out and said the Federal Reserve, which is neither federal or a reserve, stands ready to commence quantitative easing, phase two. (QE2) QE1 didn't work, and neither will QE2. What QE2 will do is devalue the dollar. And for that reason, rather than some nebulous market "uncertainty," we are seeing the price of PMs ascend to record breaking heights. For a good example: Uncertainty reigns as dollar languishes.

Another here:  Gold Ascent Continues

“The uncertainty everywhere globally now is causing people to choose gold and silver as safe-haven choices,” said Mike Daly, gold and silver specialist with PFGBest.

Every nation, in response to the Fed's continued monetary expansion of the world's reserve currency, is now going to print their own currency and buy dollars to keep their currency lower in value in relation to the US dollar. These nations will do this for export reasons. With their goods less expensive for foreigners to purchase, the exporting nations believe they can keep their exports high and maintain employment, "jobs, jobs, jobs," at home.

The United States and Britain has been debasing their currencies to alleviate the pressure of debt burdens and to help their export industries. On the other side of the world is China. It is also depreciating its currency to offload manufacturing capacity to other countries. Its trade surplus a month with the US amounts to $20 billion.

Unfortunately, it looks like no one is willing to bulge. Some experts even predict that a currency war may be looming if trade imbalances are not resolved soon. For China though, revaluating the yuan doesn’t seem like an option. Premier Wen Jiabao said that Chinese social order is based on its economic prowess – based on a suppressed currency. A 20% increase can potentially be disastrous.

But even as the United States and China battle it out, other countries are trying to secure their own industries’ competitiveness. Brazil has taken action last Friday to weaken the real. Switzerland has been weakening its currency for months by accumulating reserves that is equal to 40% of GDP. This is in an attempt to stop capital flight from the rest of Europe.

The ultimate goal of currency debasement for many countries, especially China, is employment.

Looming Currency War Drives Investors Once Again to Gold

This intervention is known as the "beggar thy neighbor" policy. As all currencies race toward the bottom and eventually collapse, gold and other PMs will rise in value in relation to all fiat or faith based un-backed, currencies. When these currencies eventually collapse no fiat currency will be accepted. The most common accepted medium of exchange will then be PMs. How high will the price go? Some multiple of what we have now.

International banks, like JP Morgan, have been suppressing the value of precious metals, particularly silver, by selling exchange traded funds, known as ETFs, at a ratio of about 100 to 1. This is common knowledge among gold advocates such as GATA. Gold and Silver Suppression This 100:1 ration of "paper" silver (and gold) to physical silver (and gold) artificially (and fraudulently) increases the supply of silver (and gold) and keeps the price down. When wealthy international investors start demanding delivery of their Comex futures contracts, the game is up and the value of silver and gold will skyrocket, as it will no longer be sold at the 100 (paper) to 1 (physical) ratio. Wait till 99 investors find out they do not "own" silver or gold, but the promise to pay silver or gold, a promise which can not be kept, because 100 times more silver or gold has been sold than exists. They will all be scrambling to purchase the gold they thought they owned, physical, real gold, for physical possession, and drive the price up.

The Federal Reserve is Selling Paper Gold and Buying Physical Gold

Banks Can't Foreclose, Making CDOs Effectively Worthless, Sending Ripples Through Entire Financial System 

FleeAmerica readers are advised to purchase and obtain physical possession of precious metals, as these will soon become the medium of exchange internationally, at least until a new monetary system is implemented to replace the current credit and debt base system now in existence. This new monetary system will most likely be commodity backed, perhaps even by gold and silver. Would it not be prudent to own physical gold and silver for just such a possibility?

One thing is certain: every fiat currency system in history has eventually collapsed.