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<p>[QUOTE=&quot;Ainslie Bullion, post: 2256871, member: 75209&quot;]Yesterday we posted an article by Jim Rickards on how central banks could possibly use gold to overcome their ‘little’ debt issue.&nbsp; If the numbers we’ve been throwing at you about this debt issue aren’t sinking in then check out these charts for a ‘picture paints a thousand words’ example (oh, and note the US take-off coincides leaving the gold standard…).&nbsp; </p><p><br /></p><p><img src="https://www.ainsliebullion.com.au/Portals/0/debt%20and%20gdp.jpg" class="bbCodeImage wysiwygImage" alt="" unselectable="on" /> </p><p><br /></p><p>Ask yourself if that in any way looks sustainable?&nbsp; Bill Holter happened to write a very similar article last night on the role gold may play in this situation.&nbsp; Bill puts it in terms of us reaching ‘debt saturation’.&nbsp; We’ve explained before the Ponzi Scheme nature of fiat currencies and the underlying issuance of debt.&nbsp; Bill goes on to remind us:</p><p><br /></p><p>“The problem with &quot;debt saturation&quot; is this, all fiat systems (Ponzi schemes) must have new investors in order to &quot;grow&quot;.&nbsp; This is what is meant when you hear the word &quot;reflate&quot;.&nbsp; The reflation process is always funded by new waves of borrowing.&nbsp; For years we would see various economic sectors passing the baton of reflation until there were few left with the ability to borrow more.&nbsp; Then we saw the real estate markets get to a point where more debt could not be added [GFC].&nbsp; Finally, various sovereign governments and their central banks picked up the baton in a final reflation.&nbsp; We have particularly seen this since 2008 with the various fiscal spending plans and quantitative easings.”</p><p><br /></p><p>We’ve also recently discussed the fact that many nations have stopped buying US debt and indeed the likes of China are selling it in great amounts.&nbsp; So what happens when no one wants to take on more of the debt you need to issue to print your currency?&nbsp; Saturation.&nbsp; Bill explains, like Jim Rickards yesterday, that about the only bullet left in the central bankers’ guns is gold.&nbsp; It may be the only thing left on their balance sheets that they can reflate to save themselves.</p><p><br /></p><p>In store customers will have seen snippets of the excellent DVD we play in our showroom “End of the Road” and many have bought it off us.&nbsp; One quote the above reminds us of is Peter Schiff quoting a scene from Superman when Louise Lane falls from the building and he swoops her up mid air.&nbsp; He says ‘Don’t worry, I’ve got you’; she says ‘Yeah, but who’s got you?’.&nbsp; The Fed and other central banks have come to think of themselves as Superman.&nbsp; You may very well be asking Ms Lane’s question….[/QUOTE]</p><p><br /></p>

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