Thoughts on Markets

Wednesday, November 02, 2011

Democracy Discussed - Markets Rebounding - Miners are up quite strongly - Precious Metals climbing ahead

Folks,

Below are two articles on Democracy. While our founding fathers gave us a republic, it has become a democracy over time as the Constitution was disassembled. Ben Franklin, said when asked what kind of government was founded, "A republic if you can keep it."

The republic form of government is based upon the Scriptural form of church government in which elders are put forth by the session (Apostles in Jerusalem), the ruling body and the people elect them to rule the local churches. Historically, the Presbyterian churches have this form of government. The elders rule on the basis of God's Law as representatives of the people. It is not a democracy.

Democracy is fundamentally a government which rules on the basis of what the majority desires apart from any higher law. Thus, the mobs elect those who will reward them with the greatest benefits. Or more correctly, those who through numerous sound bites promise them the electorate the most. Of course, seldom does and elected official keep his promises to the people once he gets into office. 

De Tocqueville warned against a democracy in which the majority can decide the law and vote to achieve greater benefits for themselves. Through our history,  we should have heeded his warnings after fully obeying Scripture. 

The two articles which follow are written by learned men.

TownHall:

Democracy Versus Mob Rule
Thomas Sowell
 In various cities across the country, mobs of mostly young, mostly incoherent, often noisy and sometimes violent demonstrators are making themselves a major nuisance.
Meanwhile, many in the media are practically gushing over these "protesters," and giving them the free publicity they crave for themselves and their cause -- whatever that is, beyond venting their emotions on television.
Members of the mobs apparently believe that other people, who are working while they are out trashing the streets, should be forced to subsidize their college education -- and apparently the president of the United States thinks so too. HERE.

Democracy Is Impossible
Walter E. Williams
Walter E. Williams After Moammar Gadhafi's downfall as Libya's tyrannical ruler, politicians and "experts" in the U.S. and elsewhere, including French Foreign Minister Alain Juppe, are saying that his death marked the end of 42 years of tyranny and the beginning of democracy in Libya. Sen. Chris Coons, D-Del., said Gadhafi's death represented an opportunity for Libya to make a peaceful and responsible transition to democracy. House Speaker John Boehner, R-Ohio, said, "Now it is time for Libya's Transitional National Council to show the world that it will respect the rights of all Libyans (and) guide the nation to democracy." German Chancellor Angela Merkel said that "Libya must now quickly make further determined steps in the direction of democracy." It's good to see the removal of a tyrant, but if we're going to be realistic, there's little hope for the emergence of what we in the West call a democracy. Let's look at it. HERE.

Mine Web:

The speed of gold's bounce impresses
Gold prices remained steady in morning trade in London despite the ongoing turmoil in Greece and analysts have been impressed with the speed at which gold has returned to the $1,730 level. HERE.

Gold to rally to new record in March - analyst forecasts
According to a new survey of gold analysts, gold is likely to rebound from its biggest monthly plunge since 2008 and reach a new record by March because economic growth is stagnating and Europe continues to struggle. HERE.

Bloomberg:

Einhorn Bets Gold Mining Companies Will Beat Bullion
Hedge-fund manager David Einhorn is betting that gold-mining companies will outperform bullion, reversing the trend from the past six months.
“A substantial disconnect has developed between the price of gold and the mining companies,” Einhorn said today in a conference call discussing results at Greenlight Capital Re Ltd. (GLRE), the reinsurer where he is chairman. HERE.

King World News:

James Turk - What You Need to Know About Gold Suppression
With central bank intervention in gold becoming widely accepted as reality around the globe, today King World News interviewed James Turk out of Spain to get his take on central bank interference in the gold market.  Turk started by giving a brief lesson on the history of these failed manipulations,Yeah, it’s an important part of monetary history.  It (the London Gold Pool) was established in 1961 by central banks around the world in order to try to make the Bretton Woods system, which had been created near the end of the Second World War in 1944, it was trying to make that system work.” HERE.

Miners from Scottrade:

Some Prices: Gold up 16.90 to 1736.80 and Silver up 0.70 to 34.15. Both are resuming the upward climb.

Best to each, Doug

                                                           

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