Friday, January 18, 2008

Howard Katz's Goldseek Article

Howard S. Katz has an interesting article in Goldseek. He writes:

>"Over the past few weeks, there have been dozens of forecasts in the newspapers about the possibility of a coming recession. In most of these, the forecasters have not been identified as anything more than “economic experts,” etc. What is going on is just a public relation campaign to convince the public that something bad will happen if we do not print money at a faster and faster rate. Usually no evidence is cited, just “experts say.” Sometimes there is an incredibly ignorant use of statistics whereby data which will be revised away in a few months is cited as authoritative. For example, the preliminary employment report for August ’07 showed a drop of 4,000. This was widely cited as evidence that the economy was heading for recession. Then the number was revised and is currently listed as an increase of 93,000 (very close to average for the year). No apology from the recession mongers. These people pretend to be scientists attempting to predict a recession, but in fact they are public relation shills, trying to convince the media to support a central bank policy of easy money and credit.

>"According to (Keynesian) economics, as it evolved over the 20th century, recession and inflation were opposite things. A recession was caused by not enough demand. Inflation was caused by too much demand. As noted, we currently have $900 gold and $100 crude oil. The CPI is advancing at the fastest rate in 17 years. The PPI is advancing at the fastest rate in 27 years. How, even in their own terms, can these people believe that there is both too much demand (“inflation”) and not enough demand (“recession”) at the same time?

>"Currently the stock market is being hammered down by propaganda about the coming recession. Of course, when the propaganda is successful and Bernanke completes his easing, this will make stocks go up. Those who listen to the recession propaganda and sell will sell near the bottom. It was precisely to deal with situations like this that the old timers made the rule, buy when there is blood in the streets. However, the rule should have been, buy when there is blood in the media because what is happening is not happening in reality, only in people’s minds. Again, in deciding on a massive easing at a time when the dollar was very weak anyway, Bernanke essentially threw the dollar out the window. The U.S. central bank has made the decision to trash its own currency. I don’t have to tell you that this means BUY GOLD. Unfortunately, most of our sources of information in this society are full of lies. Their purpose is to make the banks and their other vested interests rich, and to do this they have to make you poor. Believe the lies, and you are a loser.

>"In a very real sense, a recession is like an infestation of witches. It is an imaginary event. It can be listed with the belief of the Aztec Indians that, if they did not offer the Sun God a human sacrifice every single day, then the sun would not rise the following morning. The difference is that the Aztecs never knew what science was. A century ago our society did understand scientific method, and there is no excuse for letting that knowledge slip away.

>"So, dear reader, if you want to be a gold bug, then you must aspire to see reality as it is and not believe the lies reported in the media. This is my job at One-handed Economist (see my web site Visit us, and see if I can make you a gold bug and put some extra money in your portfolio."

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