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Wealthy investors are buying up gold at unprecedented rates, and, VALUE IN A DEPRESSION-LIKE PHASE? !!!

October 1, 2008

Tracking Thom Hartmann’s Air America program today:

According to a front page article today’s edition of The Financial Times, the demand for gold that one can hold is up and it’s being bought by the wealthy to go into their private vaults. “The gold refineries cannot produce enough bars.” said Jeremy Charles, chairman of the London Bullion Market Association.

It’s not surprising that folks are worried. Similarities with the late 1920’s abound. History may be repeating itself. Whether you believe that we are captives to economic cycles or not, we have had wild speculation at the top, stagnant wages at the bottom, and the same huge concentration of resources and wealth for those at the very top of the economic pyramid exists as did in the run up to the market crash of 1929. How unequal are we? check here for some solid numbers.

What’s the problem with the bailout package? An investment banker has come up with an investment banker’s solution for a problem that has been developing for 30 years.  Everyone but the wealthy class is having to live more and more on credit. With deregulation, lost transparency, and the loss of many types of security such as job, health care and housing market, the problem is more pervasive than the bailout package can address. We need the focus to be on projects that can help at the level of communities through out the country; maybe a modern day WPA? rebuild bridges, roads, invest in education and culture; and, we need a much more robust oversight and supervisory structure than wee currently have.

Credit to Thom Hartmann’s program— listen to the podcast of today’s program, with much more of the historical material including quoted segments from papers in late 20’s and early 30’s… it’s not simply fascinating, it’s also a bit surreal.

One of Hartmann’s conclusions is that the middle class is the problem, in the eyes of the Conservatives.  Whenever the middle class is comfortable and has security, it gets a little bit rowdy. Thomas Jefferson thought this was a good thing, that a vital democracy should be energized in this way. But conservatives will feel threatened and don’t like it. So they work to wipe out the middle class.

Another of the points he bring up, and this is downright brilliant, is the value in a re-calibration of our society’s values that a depression-like occurrence might bring. He quotes his GRANDMOTHER as saying over and over that we need another depression in this country to get folks to focus on what really is important…wow.

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