David Goldman on Kudlow: cut gold exposure

[KGW]

So, is David trying to knock gold lower so that he can then buy at a lower price?



"The Tea Party Goes Global!

November 17th, 2010
By David Goldman Germany, China, and others join the movement to stop the debasement of the US dollar. Here’s the link to my comments last night on CNBC’s The Kudlow Report. The Fed may not be able to execute QE2 due to opposition at home and abroad. I have cut my gold exposure by more than half and reduced other inflation hedges."

[coolhand]

Re: David Goldman on Kudlow: cut gold exposure

he might be right short term, but in the intermediate term & beyond, in the absence of the discovery of massive new cheap energy sources, austerity in the USA is simply not an option. We saw from Oct-08 thru Mar-09 what happens when the gov't is not supporting the economy - the financial system could implode.

To me, the sudden move to discuss austerity measures such as the proposal today to freeze federal employee wages for 2 yrs smacks of a display of Kabuki theater to curry favor with some creditor of ours that had some choice words for us at the G-20 meetings. After all - the polls had been telling American politicians all year about the smackdown Dems would get for spending...but all of a sudden after the G-20 meetings, we start looking at ways to cut costs...and more importantly, we go very, very public with those discussions?

[Starving Steve]

Re: David Goldman on Kudlow: cut gold exposure

It is called, "painting the tape", and this "painting of the tape" has been done since at least the 1920s. No surprise that "market-makers" might be painting the tape this weekend.

[Jay]

Re: David Goldman on Kudlow: cut gold exposure

he might be right short term, but in the intermediate term & beyond, in the absence of the discovery of massive new cheap energy sources, austerity in the USA is simply not an option. We saw from Oct-08 thru Mar-09 what happens when the gov't is not supporting the economy - the financial system could implode.

To me it is very simple, debt levels at some point have to be reduced (assuming no one develops teleportation or the like). The global economy can not function as is otherwise. Right now the US is doing what it can by hook or by crook (focusing on euro sovereign debt issues, and inciting unrest in other nations like the Korean peninsula) to keep the rest of the world buying Treasuries. This has kept a lid on things domestically for now. But eventually the world will get all loaned up too. This massive debt will either be inflated away or defaulted upon. Which do you think will happen? I will take door number one. Inflation is so much easier politically and appears pain free at first. In fact, it actually feels good in the beginning!