There have been a couple of core themes of our daily writings with regard to investment and protection of wealth. Firstly is that since the GFC we have seen global central banks artificially stimulating financial markets and property with printed money and near zero interest rates creating asset bubbles beyond fundamentals on an unprecedented scale. Secondly, that all comes via debt, the very catalyst of the GFC, and not just a little, but up 40% and on any measure at all-time record highs. Not convinced?.... Deutsche Bank – Germany’s largest bank and one of the largest in the world had this to say on the weekend: “The fragility of this artificially manipulated financial system was exposed over the last couple of days of last week. It all ended with the S&P 500 falling -3.19% on Friday – its worst day since November 9th 2011.” Sound familiar? Or from Bridgewater – the world’s largest hedge fund in a note to clients: That's where we find ourselves now—i.e., interest rates around the world are at or near 0%, spreads are relatively narrow (because asset prices have been pushed up) and debt levels are high. As a result, the ability of central banks to ease is limited, at a time when the risks are more on the downside than the upside and most people have a dangerous long bias. Said differently, the risks of the world being at or near the end of its long-term debt cycle are significant. You see Bridgewater, headed by legendary Ray Dalio, are seeing through the Fed’s tightening talk as either ill-conceived (based on short term cycles not long term) or verbal massaging. Indeed they see things going so badly soon that the Fed will need to ease not tighten. With rates at zero already that leaves only one tool… more Quantitative Easing. For newcomers, that is printing money by buying your own Treasury bonds (Gov debt). They already have over $4t on their balance sheet and it clearly isn’t working. Bridgewater finished their above advice to clients with this: We Believe That the Next Big Fed Move Will Be to Ease (Via QE) Rather Than to Tighten Should QE4 really happen many believe that is when all faith will be lost and you will see gold truly take-off. China eased further yesterday and that stimulus didn’t even last a full day on Wall Street, ending back in the red after the initial big rally. Not coincidentally then Ray Dalio had this to say earlier this year: If you don’t own gold there is no sensible reason other than you don’t know history or you don’t know the economics of it
As in the past, many times in the past, in many countries and as history dictates, a collapse will follow and they all turn to precious metals.
Eliminate all federal taxes and let the government simply print to pay it's bills. The cost in inflation will spread over each citizen equally.......
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system." Ludwig von Mises
Nobody should be buying Gold right now in Bulk for one and only one reason Gold is going back to 2001 Levels. No reason to try to fool people a few days into the Dow going down. Fed and the Powers to be in the Market will get all that up up up with the Dow again. Its to early for PM's to go to the Moon and no real Demand so please go find another group of on-line people to scare with your foolishness. Repeat do not buy Gold in Bulk yet. Wait till it goes to $400-$500 oz.
If I wait that long, I'll be dead, so please go find another group of on-line people to scare with your foolishness If you feel now is the right time to buy, then buy. If you don't, then wait.
