The Art of Speculation

By Howard Katz
Jun 28 2010

After the great gold bug victory of the 1970s, the economic establishment had been humiliated and disgraced. This was because none of them knew any economics.  They all had gotten their fancy titles and positions by apologizing for the bankers’ privilege to create money. The bankers (and their associated vested interests) got rich. The American people got poor. (This is the first generation of Americans poorer than their parents.)  And so it paid off for the bankers to hire a gang of charlatans, buy them fancy titles and infiltrate them into prestigious positions in academia so that they could use their prestige to defend the bankers’ privilege to create money.

The gold bugs of the late 1960s wiped the floor with these phonies. We saw clearly that the price of gold, then $35, was going up and advised people to buy gold stocks. The establishment, scared to death that any mention of gold would lead to demands for a gold standard (which would take away the bankers’ privilege), responded, not with their (pitifully weak) theories but with insults and ad hominem attacks.

In other words, the economists you see quoted in almost every newspaper are shills and hacks. A more disgusting and contemptible group of weasels does not exist on this earth. (Don’t worry that I am going to get into trouble by speaking so frankly. You see, the establishment deals with me via the same technique they use on the price of gold. They pretend that I do not exist. read more