Why high gold prices indicate something far more troubling

The MSM in America tends to ignore indications that we may be heading into something much worse than a recession but the mainstream British media continues to impress. The Telegraph has an excellent article on the importance of the gold price as an indicator of the real worth of money and the health of the economy.

“The price of gold tells us a lot about ourselves. It holds up a mirror to the way we are governed, our economy and its prospects. It reflects not only the physical dangers of floods, famine, terrorism and war, but also the financial perils of systemic addiction to debt and budgetary incontinence.

“The modern mind dislikes gold,” said Joseph Schumpeter, “because it blurts out unpleasant truths.” With gold trading at about $900 an ounce – more than 200 per cent higher than it was at the turn of the millennium – today’s message from the bullion market is not comforting.” more