Gold – The Pulse of the World Economy

Posted by Martin Armstrong - Armstrong Economics

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Capital will always concentrate into a single sector causing prices to skyrocket attracting more capital to make MONEY. As the capital concentrates, then the slightest disturbance in confidence creates the collapse. This is what most economists and politicians do not understand. Once capital has concentrated in one sector, scare the longs and they panic like a heard of wild horses trying to sell everything in a stampede. There are no bids and you get the gap down panic.

Because gold is NOT the legal MONEY in the system at this time, it is a free market and it now represents the Pulse of the World Economy. It is the hedge against government instability and that is its role at this time. It is fulfilling the same role in many respects as the Occupy Wall Street group insofar as it is the protest instrument against the economic instability of Government. But make no mistake about it. Gold is not MONEY, nor is MONEY a store of value Gold is reflecting the CONFIDENCE within the global economy and on that score; it is an international vote that should not be ignored.