Why Gold Bugs Should Cheer For Democrat Presidents

Tyler Durden's picture

We already know that Ben Bernanke is a gold bug's best friend (here, here and here). And while technically Ben Bernanke is a republican, and was appointed to his post by a republican president, it is safe to say that when it comes to printing money political affiliation is irrelevant, especially since it was paradoxically a democrat Obama who was Bernanke's biggest backer during the last year for very obvious reasons - after all it was merely Bernanke's $2 trillion in excess reserves that pushed the stock market higher and gave the false impression that the economy is improving (even if a potential Romney administration would have hardly budged the status quo and likely replaced Bernanke with an even more pro-printing figurehead in the face of Bill Dudley). So a different question is: should gold bugs be more excited by a democrat or a republican president. The answer is self-evident: of the $4000 inflation-adjusted increase in gold price since gold was floated by Nixon, a solid $3000, or 75% of this rise, has taken place under Democratic administrations. So dear gold bugs: stock pile that physical and cheer on Obama and hopefully his democratic successors. At this rate, gold (and ostensibly all other precious metals) will outperform every single asset class known to man (sorry Buffett).

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nmewn's picture

Which is why I call Benny my bitch ;-)

kaiserhoff's picture

Make a little money.  Lose a civilization.  Hell of a deal.   Literally.

nmewn's picture

Yeah, they're idiots.

But they really can't help themselves now, the central planning is too far gone. I should point out I don't trade gold, I save it...on the bottom of a lake ;-)

kaiserhoff's picture

Same damn thing happened to my silver and moonshine still.  Funny how the earth sucks;)

GetZeeGold's picture



When 475 get another 5% to go along with them.....there's only one thing left to do....sell paper and buy gold.


Greed has nothing to do with it.....it's just just self preservation.

icanhasbailout's picture

Gold bugs: "Yay FDR!"


oh wait...

Supernova Born's picture

No kidding. Cheering wildly right up until the crickets start chirping when the executive order is signed.

Part of the "Cash for Gold" explosion is intended to reduce the constituency of "folks" who'll be angered by a ban on possession.

Those who sold their gold will feel extra-special stupid as gold skyrockets right up until the ban, when they'll golf clap for the leveling benefits of socialism.

Freegolder's picture

'At this rate, gold (and ostensibly all other precious metals) will outperform every single asset class known to man'


Well, there is gold, soon to be centre of the monetary world again.

All other metals are industrial though.

Precious? Don't think so.

BLOTTO's picture

God made Go(l)d.


Man made paper.


You go and try making gold...maybe you can find it, but, no way you can make it.


Indeed it (pm's) is precious...since the dawn of time. 

PeterLemonJello's picture

Another FOFOA leming...I'm sure nothing will have any value to anyone ever for anything...other than gold of course. Sigh

Silver Bug's picture

We all know gold and silver are going much much higher due to QE to infinity. Lets just hope the world doesn't tear itself apart in the process.



JKearney3153's picture

zerohedge.com? OR goldhoarders.blogspot.com? When SHTF I'm stockpiling lead, brass and bottles of water

archon's picture

I'm a pragmatist...  if serfs want to be serfs, let them be serfs.  I buy gold because the more serfs there are, the more valuable gold becomes.  And yet, somehow that makes ME one of the bad guys...

jcpicks's picture

GOLDS <Cmdty> GIP <Go>

CunnyFunt's picture

"cheer on Obama and hopefully his democratic successors"? At this rate, there won't be much to succed.

TrulyBelieving's picture

The measure of sucess for O and is Statist ilk is the destruction of the dollar. Collapse the economy, crush the prudent, and  usurpation of a government by the people, for the people is their goal. Of course their reign will be much more merciful, spreading the wealth and all the goodness that flowes from totalitarionism. 

Bad Attitude's picture

I've been investing in bullets (and food) since Dear Leader took the throne. While I can't predict the future, I know it isn't going to be pretty. Sooner rather than later, Dear Leader is going to run out of other people's money. The Obama Bucks will stop flowing. The Obama Phones will stop working. When that happens, the thin veneer we call civilization will fall, and those who exist only by feeding off the labors of others will riot and pillage. Even gold won't hold back the rampaging hoards.

AgShaman's picture

That's a bad attitude, but yes....a very likely scenerio

hawk nation's picture

If america joins israel and bombs iran the chinese and the soviets may just decide its time to dump the dollar and the shit will hit the fan

I am not sure that that isnt what obama and his gang want anyway in order to impose tyranny

TrulyBelieving's picture

It takes an Ivy League economist to understand that gold is just a barbaric relic. And it takes an uninformed gullible people that have known nothing but fake paper used as money to believe it. 

Hubbs's picture

Hmmm deep. Economists know nothing, espescially if they are from Harvard, and the people know nothing unless it is on TV. So therefore gold is real money. To make it short and sweet: the crowd is always wrong.

LawsofPhysics's picture

For not "knowing" anything, they sure live pretty well.  Oh well, hope they taste like chicken.

archon's picture

My own learned opinion is...  sh!t gonna get real when dollar go BOOM!

GetZeeGold's picture



Save your breath and your arm strength....you're going to need it when you have to start swimming.


You can only pull something like this off once. Make the best of it - Gordon Brown

wonderatitall's picture

but but but...romney killed the twinkies...or so said the mob goon trumka...

so there

nmewn's picture

lol...a statement from the Teamsters...


It would seem one union was standing on a rickety ladder trying to put the Twinkie Star on top of the tree...and knocked the whole thing over.

Merry Christmas.

Hubbs's picture

Huh? Sorry Tyler. All this headline shows is statistically , you like to write articles about gold and your bias in favor of it. The "launch" really occurred under Bush W.

But we ZHers know that you are just making light chit chat with this article anyway, as we are aware of the bigger monsters lurking in the waters.

gould&#039;s fisker's picture

Reuters said there is no need to worry because in their technical terminology the economy has a bungee cord that will save us all (therefore no need to buy the shiny stuff).  They're pretty optimistic that recent market losses don't really count for much of anything, and the article's illustrious commentariat seem to agree (although not knowing what they are agreeing on).  All appears to be well in the Republic.



dwdollar's picture

What this really demonstrates is that the Reagon-Bush Sr.-Clinton years were merely a pause on our road to hyperinflation. A pause probably due to several factors including the fall of the Soviet Union and an amazing technological innovation (which doesn't happen that often).

Ident 7777 economy's picture

Open to debate on this issue .. time will tell.

BooMushroom's picture

We could have the fall of Persia and a revolution in nanotechnology or gene therapy.

Not holding my breath or anything though.

Atomizer's picture

I personally detached my tradition holdings independently apart from the likes of any Government public servant partyline scoundrel .

LawsofPhysics's picture

Just like the human population, all I see is an exponential plot.  Enough with the left/right bullshit.

ParkAveFlasher's picture

"Indexed to 1969"


I would prefer a log chart going back to the charter of the Fed Reserve, especially if the thesis involves gold vs usd.  We are not even at base camp 1 yet.

LawsofPhysics's picture

Yes, let's see how this 100 year experiment in price stability is working out for 99% of the population.  Great point.

JustObserving's picture

As long as politicians dare not touch Medicare and Social Security, those liabilities will continue to increase by about $7 trillion a year.  The Fed will be on infinite QE to deal with debt and unfunded liabilities.

All this talk of the Fiscal Cliff is about $600 billion in reduced spending and increased taxes while US debt and unfunded liabilities rise by $8.3 trillion a year.  So the Fiscal Cliff addresses about 7% of the increase in debt and liabilities and the politicians cannot agree on that.

Bernanke will have to continually attack gold like his predecessor Greenspan who said:

"Central banks stand ready to lease gold in increasing quantities should the price rise."

  • Testimony Before the Committee on Banking and Financial Services, U.S. House of Representatives July 24, 1998
BurningFuld's picture

Well, He's almost out of those Gold bullets and China is happy to accommodate the central banks gold release by buying it all up. The Shit hits the fan when China says they have 10,000 tons of gold and people lose faith in the USD for the Renminbi.


I read in Jim Rickards "Currency wars" thats its as little as 4,000 tons and they can challenge the dollar for reserve status.  They were over 1,054  tons in 2009 now and probably closer to 2K today. At the rate they are mining and buying, they will probably have 4K within 5 years if not sooner.

cristo's picture

According to oilprice.com on their gold holdings by country widget ,

China is #2 behind the US with 131,561,483/oz of gold or 4027 metric tons of gold .

link :       http://oilprice.com/free-widgets

Widget Description: World Gold holding figures for various nations. Has production figures for 2011 and reserves. All figures are in ounces. (Adjusts every second).

Data Source: IMF (International Monetary Fund). Recalculated when new figures are released (Monthly).

for those who don't know oilprice.com .

info :    OilPrice.com is the fastest growing energy news site online. Our analysis focuses on Oil and Gas, Alternative Energy and Geopolitics. We have 3 in house writers and publish research from over 150 contributors.

OilPrice works with over 250 syndication partners who re-publish our analysis. Some of our partners are: Zerohedge, Business Insider, Forbes, 24/7 Wall St, Arab News, The Street, Rigzone, Mining.com, Mineweb, Minyanville, Stockhouse + many others...


Winston Churchill's picture

Very nearly ready. Just waiting on an up and running alternative to the SWIFT system.

Been in process since that unscheduled BRICS meeting in Mumbai in May.

The system  will probably be  ready in mid 2013.

Not so clever of the USA to use SWIFT as a weapon against Iran.

The Law of Unintended Consequences is a bitch.

LawsofPhysics's picture

Bring it, but I seriously doubt China will allow any peg of thier currency to a fixed measure of gold.  It's a fiat world now and they need to be able to manipulate their currency in order to control the sheeple (as they have consistently done for thousands of years).  They are a communist/mercantile state, go ahead peg to an exchangable and fixed amount of gold, please.  Many of us hold lots of currencies, including theirs, please do it.  It would be awsome to know that a fixed amount of yuan (or any paper for that matter) would be exchangable for gold moving forward.  Bring it.

LMAOLORI's picture




The idea is already being floated that Gold is enemy friendly keep that in mind I could see obama coming for it after he goes after your 401k's. 


The Gold Standard is not Synonymous with Freedom


Yes I do have Gold though not alot I have more in silver just pointing this out .


LawsofPhysics's picture

Good luck with that.  We have seen major superpowers go bankrupt and collapse before.  Look at what the Soviet Union went through.  The same thing will happen in the U.S., all the world's a stage and all you have to do is replace those actors (U.S./Russia) with China/U.S. and the relevant currencies (Dollar/Ruble) with the Yuan/Ruble.  Their will be secessions by resource rich or fiscally independent states (as there were with the Soviet collapse) and there will be multiple economies/currencies for the people and only one economy/currancies when dealing with any given state or government agency.

hedge accordingly.

XtraBullish's picture

What about the Repubs and Dubya when the barbarous relic went from $300 to $1,000 per ounce? Last time the gold price tripled was under Carter a Democrat so the "Dem is good fer gold" is all bullshit. Central Bankers pull the puppet strings of the politicians and then the TREASURY DEPARTMENTS print the money. Politicians do NOT create inflation; BANKS do. End of Discussion.

Atomizer's picture

Emerging market local currency bonds: diversification and stability – BIS [Bank of International Settlements] Pg. 11


Just more of Central planning tossers throwing shit at the wall, and hoping it sticks!



Bush was Democrat Light.  He and his father are nothing more than the country club republicans.  Medicare prescription D and compassionate conservatism was a bullshit smokescreen for more keynesian policies and then you have Greenspan priming the pump.  There is no difference in the parties. Obama is taking us over the cliff at 200mph, the republican establishment is doing it at 150.

Ident 7777 economy's picture

Neither one was a leader in the vein of -dare I say it- Reagan.


JKearney3153's picture

August 15th, 1971. A day which will live in infamy