Countering devaluation: Govt slaps temporary ban on gold import

The Indian and Pakistani governments are ensuring the impoverishment of their citizens by restricting and banning gold imports.  The masses' purchasing power will be slaughtered when their respective sovereign currencies collapse from over-printing.

http://tribune.com.pk/story/584352/countering-devaluation-govt-slaps-temporary-ban-on-gold-import/

US fury as Karzai backs Pakistan

Niiiiice...

http://www.irishtimes.com/newspaper/breaking/2011/1027/breaking19.html

Step Aside US: Pakistan's New "Best Friend" China, To Provide Karachi With 50 New JF-17 Fighter Jets On Expedited Basis

So wait a minute.  The US provides Pakistan billions of USDollars in foreign aid, and Pakistan turns around and buys 50 jet fighters from China?  That's sound foreign policy, I tell ya...

http://www.zerohedge.com/article/step-aside-us-pakistans-new-best-friend-china-provide-karachi-50-new-jf-17-fighter-jets-expe

US Government Seizes Pension Funds, Invades Pakistan

http://www.zerohedge.com/article/guest-post-us-government-seizes-pension-funds-invades-pakistan

Another reason to be bullish on gold

First, the Fed has dropped short-term interest rates down to 0%. Then, the Treasury is injecting up to $7.4 trillion in additional capital, literally out of thin air, to support ailing (and failing) industries.

Capacity issues are creeping in, as farmers lose crops due to drought, mines dry up, and exploration for new resources are stalled due to the financial crisis. All these factors point to inflation. However, fears of deflation rule the day.

Yet, gold prices keep trending up. Shares of gold mining companies have shot up even more--up 100% in some cases.

The markets are betting on deflation of asset values, including equities and real estate. Hence, both are likely to remain low for some time. And crude oil and other energy sectors have been battered. Agreed.

But looking forward (instead of through the rearview mirror), oil won't remain below $40/barrel forever. And when that dynamic reverses course, inflation will rule of the day.

And today, we had other things to worry about. Palestinians are shooting rockets at the Israeli border. Pakistani troops have abandoned the Afghanistan border and re-aligning themselves along the Indian border. The price of gold shot up over $20/oz within minutes of the news.

Today, we found out gold is not only a great hedge against inflation, it is also the currency of last resort in times of financial and geopolitical crises.