The IMF just announced a real game changer that should have everyone charging to the gold market.
Posted by Adam King on April 27, 2011
Time is shorter than you think for gold investment.
April 27, 2011 – The IMF just announced a real game changer that should have everyone charging to the gold market. Except nobody seems to be paying attention. They’re all too busy waiting for Bernanke’s next bumbling runaround and playing political football with the economy. But none of that really matters.
Regardless of who is in power, in just five year’s time the rule book is going to be tossed out the window. The Wall Street con game will come to an end as the market manipulators find themselves trying to second guess a whole new paradigm. All bets will be off on how it will play out in the end. For a while, anyway, it will get very ugly.
You see, in 2016 the global economy will be taken out of our relatively benign hands to be held in the iron fist of communism. That’s when the IMF predicts China’s economy will outgrow our own, says Brett Arends in MarketWatch.
Naturally the spin doctors are playing it down and expert consensus has the event decades down the road. But “they’re only comparing the gross domestic products of the two countries using current exchange rates,” says Arends. “That’s a largely meaningless comparison in real terms. Exchange rates change quickly. And China’s exchange rates are phony.”
The IMF, however, looks at “the true, real terms picture of the economies using ‘purchasing power parities,’ [which] compares what people earn and spend in real terms.” Not that PPP is in any way novel – that’s the measure we used to justify protectionist trade policies against China decades ago.
It’s not as if China snuck up on us out of nowhere – we’ve been closely monitoring their progress for over 40 years. And in the past 10 years we saw their economy grow from one third to nearly three quarters the size of our own.
Capitalism isn’t a way of life for the Chinese, it is just the most efficient means to an end, a self-serving vehicle for global dominance. We just can’t accept the fact that a communist country is going to beat us at our own game.
Of course China will still need capitalism and in time the markets will adjust. In the meantime, as always, gold investments will carry us through.
Stewart Lawson
Senior Staff Writer – Certified Gold Exchange
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US Gold Market
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