Friday, November 19, 2010

Currency war brews

It's also Rickards vs. Roubini. Understand that while Roubini correctly called the financial crisis, so did Rickards. But Roubini also said gold was in bubble territory at $1100/oz, or thereabouts. Here's proof that he dismissed gold's prospects last year:

He may be considered a great economist by many, but that's also why the field of economics is called the "dismal science." The best ones are often wrong.

And the best ones can't even figure out the basic economic laws of supply and demand. Trillions of dollars are created with one computer keystroke by Blackhawk Ben Bernanke. Yet, it takes years of sweat, man, machine, and luck to produce an ounce of gold and silver. Paper currencies may be created out of thin air instantaneously, but precious metals are found and mined at an excruciatingly slow pace.

I'm glad Roubini isn't managing my money.

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