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Richard Russell continues:
“Where do these people live? I wonder, where do they sleep? How do they have the energy to stand in the blaring sun all day with their cardboard signs? But they are the signs of hard times. I've seen them before -- in the 1930s. Today they are pushing shopping carts around the city, carts filled with junk -- old blankets, tin cans, old toys, anything, it seems to fill up their carts.
These are the remnants of society, the ‘leftovers.’ How do they survive? I keep wondering and it scares me. These are people who have lost everything and it is spreading. On Wall Street they're ‘taking it to the streets.’ But these people are being shoved into the streets and the alleys and the bushes of every town in the US.
And I think, ‘But why La Jolla?’ And the answer is that nobody ever froze to death in La Jolla. I've seen them weather the nights in NYC. Some sleep on top of the subway grills where warm air is pushed up from below. Some sleep on the steps of churches where the chances of being robbed are slim. Others sleep under slabs of cardboard, which are fashioned into little huts.
The signs of hard times are all about, but will it get harder? It all brings back bad memories of the 1930s. And to tell you the truth I'm scared.
And above it all stands Wall Street with its giant buildings and it heart of concrete. No wonder they hate the Street most when hard times arrive. Median incomes shrank further after the recession. Overall drop of 10% explain the public's angry mood and the riots in 250 cities around the world. Anti-Wall Street parades and gatherings are a feature of NYC.
Gold -- When all else is suffering from devastation, when politicians have destroyed their own sovereign money, gold will still have value, and gold will still represent buying power. I'm holding mine for the same reason that I own health insurance. Although even the gold-bugs expect a big correction, silver and gold continue to creep north. Interesting and frustrating action for the precious metal shorts, and there are a lot of them.
Gold is hanging on rather impressively. A bearish signal (on the chart below) will be given if the 1580 box is hit, but aside from that gold appears to be under accumulation. The slow ‘creeping up’ in gold is constructive. The near upside target for gold is to get back to the 1800s. Don't be discouraged, it may happen. Central banks are buyers here, swapping their unwanted dollars for gold.”
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© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
Richard Russell - CB’s Buying Here, Swapping Dollars For Gold
With tremendous volatility across markets globally, including gold and silver, here are some key points the Godfather of newsletter writers, Richard Russell, wrote about in last couple of commentaries, “The signs are growing. I can see the signs in the number of vagrants in La Jolla and south in Pacific Beach (California). As I drive by I see little clusters of men and women (mostly men) huddled in doorways or sitting in the bushes beside the roads. These are vagrants, always a sign of a severe recession. Men holding cardboard signs stand by the side of the road. The signs read, ‘Vet needs work’ or ‘Single mom needs food for her three children.’”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
October 13, 2011
