Gold has picked up today where it left off last week, doggedly resisting Wall Street’s downward pressures.

August 15, 2011 – Gold has picked up today where it left off last week, doggedly resisting Wall Street’s downward pressures. And while last week’s gyrations on Wall Street appear to have died down some, equities trade remains clearly indecisive. The message is loud and clear but nobody cares to listen.

Stateside, of course, we are inundated with campaign rhetoric as even the President sees it more fit to woo voters than address the pressing underlying issues tearing apart our economy and our country. And sadly the one true maverick in the bunch, Tim Pawlenty, has been forced to withdraw because nobody wants to hear what he has to say.

Mr. Pawlenty was single-minded in his message: get rid of the Fed first because only then can we hope to recover. He knew that no matter how grand the plan it would be doomed to failure in the existing framework. Pawlenty was spot on, and for precisely that reason he was cast aside.

An eerily similar situation exists in Great Britain. In The Mises Daily Andy Duncan discusses “the real sickness at the heart of British society, which is the constant-inflation policy of the British government.”

We should pay heed to Duncan’s remarks about the recent riots in London. “We have seen this policy massively extend the power-hungry reach of these moronic busybody politicians into our lives,” says Duncan, “as it funded the welfare-warfare state and eventually generated the terrible events of the last few days in Britain.”

As Duncan sees it, the Bank of England with “its own abysmal record of incompetence, predictive failure, and dismal Keynesianism” lies at the heart of the problem. “It is clear that these hapless central planners have no clue what they are doing and no idea what damage they are causing with their policies, but they are still unbelievably confident about their ability to precisely predict the future down to the second, five years out, despite having been absolutely wrong about everything for the last five years and more.”

Duncan could just as well have been talking about the Fed. Bernanke & Co. is not the cure, it is the problem. “This economic crisis has not been visited on us by aliens. It is not an act of nature. It is an act of man. And men can fix it, if only they had the wit to realize it.”

Not too far down the path we are on awaits reaction as we have seen in London but on a much larger scale. But I expect we too “will potter along with constant low-level depression fed by constant low-level stimulation, punctuated by societal breakdown, until ‘something turns up.’”

The wise and wary aren’t waiting for that to happen – they’re buying gold coins right now.

Kevin Johnson

Senior Staff Writer –

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