David Engrstrom writes:
"Election day has passed and my phone is ringing off the hook from friends who want to know how the election results will affect the gold price. To all you Inquisitive Cats I say, “The secret may lie in understanding the last 4 years of market and economic activity.”
"September 15, 2008 was the day Lehman Brothers collapsed, hence what I refer to as the day the great recession of 2008 began. It was the largest bankruptcy in the history of the country and served as the impetus to commence money printing. On that day, Gold traded at $790 an ounce.
"The days, months and years to follow saw the passing of the “Troubled Asset Relief Program” (TARP), followed by QE1, QE2, HAMP, HARP, the Twist, Various Refi and MBS purchases, a multitude of stimulus programs to sell more of everything from cars to windows to homes for your new windows and QE3. I wrote that all in one breath so I couldn’t name every stimulus package that was passed. You get the point.
"The bottom line is that each year since, we’ve seen budget deficits in excess of $1 trillion all accommodated by multiple lifts to the debt ceiling. That brings us to today where America lies in two camps. One camp is the “we’re making progress camp.” The other camp is the “we’re in worse shape than before camp.”
"You know which camp you’re in. ..."