WAPO wants you to buy gold, but does this really make sense? Historically, gold price goes up during recessions and drops afterward, as investment flows to industries that benefit from recovery. Several industries benefit from recovery, for example energy prices and demand for consumer electronics go up in a recovery. Looking at the macro picture, we seem to be having a slow recovery right now.
Source: Washington Post
Just watched Newt’s energy informational. Like most people, I am happy about the good news in North Dakota. However the former Speaker loses a lot of credibility, when runs fast and loose with facts. Why was gas so cheap when Obama started his term? This was clearly due to reduced demand due to the Great Recession. See the US demand chart for oil attached with comparison to India and China. The data comes from petroleum company BP. Energy issues are particularly interesting to me, so I will be posting more on this. BTW, the chart shows how ineffectively the CAFE standards have worked in the US.
Source: Guardian
