years), the irony is that today's inferior employment figures are the
direct result of excessive monetary stimulus by the Fed. The Fed can
pump all the money it wants, but there is a massive debt deleveraging going on, and both US consumers and businesses will continue
to save versus spend the easy money being pumped into the system.
On the eve of QE3, according to Montreal investment brokerage,
Brockhouse Cooper, non-financial US companies held $930 billion
in bank accounts, 50% more than before the recession, and the US
household savings rate has jumped 4% from the 1.5% low of 2005.
Post QE3, gold is telling us something. As noted by Louis
Woodhill in Forbes, The Real Dow, which is the Dow Jones
Industrial Average divided by the price of gold, actually fell by
0.65% on September 13, the day that QE3 was announced. While
the Dow gained 1.6% on that day, gold went up by 2.2%.
GQM: TSX
GQMNF: OTCQX
SOLEDAD
MOUNTAIN
PROJECT
Continuing the drive
toward construction in
2013 and production on
the Soledad Mountain
gold-silver heap leach
project in southern
California
www.goldenqueen.com
10 www.resourceworld.com
NOVEMBER 2012
