Assuming that revenue increases 4.6% per year, public debt increases 14% per year, and that a maximum of 1/3 of revenue can be used for paying interest, the blended interest rate in 2030 cannot exceed 2%. This tiny exercise tells me that western economies are accelerating toward a wall, there are only a few years or perhaps a decade or two remaining before a major reset must occur, and that the time for delusional thinking is nearly gone. What have you done to prepare for when one or many western economies “hit the wall?” Gold and silver might be better answers than devaluing currencies, overpriced bonds, or levitated stocks.
The story will bear close watching as HSBC and the New York Fed prepare for Texas to take actual delivery down the road. Texas’ gold holdings are reported to now total $1 billion in value. If those gold bars have been surreptitiously leased out, pledged, hypothecated or even sold, then we could see a major scramble when the time comes.
There is no shortage of negative commentary on gold and silver. A quick google search will produce headlines which make that point. Not all objections and criticisms of gold are intellectually honest – they slant the narrative to support their bias in favor of the status quo, stocks, bonds, and central bank issued currencies, such as Federal Reserve Notes. The dishonesty is understandable since gold is often viewed as an anti-dollar and gold prices sometimes function as a check on the excessive debt creation.
Central banks and governments created this addiction – addicted to debt, deficit spending, and Quantitative Easing. Consider the upcoming pain for most people, governments, markets, and pension plans if the drug is removed and we suffer the withdrawal symptoms.
Negative interest rates, cash ban, gold ban, private cash hoarding, cash hoards under Swiss soil – these are all concepts we would have considered figments of a sci-fi writer’s imagination not long ago. Come what may, it will not be easy: neither for the interventionists and control freaks trying to keep a lid on the consequences of their own doings, nor for the people trying to lead a normal economic life without massive restrictions.
The strategy that China has taken in the gold market can also be implemented by individual investors, by focusing on specific gold companies who – in the midst of a commodities bear market and global currency war – are out acquiring already-established gold assets.
Governments and central banks have been able to “extend and pretend” by printing a few $Billion or $Trillion to keep the system working, which maintains the money flow to the political and financial elite. The elite are purchasing elections, legislation, and votes, and for this they expect to receive benefits from their investments.
There will always be hawks and vultures in our financial world. If you are not a hawk, don’t want to be a vulture, are worried about “black swans,” own no “tame” politicians, and want to protect the purchasing power of your assets, then use gold and silver for financial insurance and protection, just as the shell protects the turtle.
This is an excerpt from the latest Advisory Board meeting by Incrementum Liechtenstein. In this article, we highlight the thoughts of Jim Rickards and Heinz Blasnik when it comes to the future of our monetary system, and their views are rather surprising.
Governments and banks around the world are making it more difficult to save and transact with cash in their latest attempt to financially suppress their citizens. Their goal is to force you to deposit cash and charge you interest as well as having total control over the money on deposit.
Not surprisingly, the reason given was to “fight terrorism!” The war on cash is proliferating globally. Recently, the Swiss National Bank implemented negative interest rates without first solving the “problem” of how to prevent cash from fleeing the banks. And as to be expected, prudent depositors started doing some calculations.
JPMorgan Chase very recently began test driving new rules in Cleveland as well as other markets.The bank will no longer accept cash from customers who want to use it to make mortgage payments, pay credit card balances or to cover their automobile loan. More and more people will be looking for ways to make it stop. This is where things promise to get interesting for gold and silver investors.
The credit bubble has grown so large that the supposed central bank gold would have to be valued at $40,000 to $80,000 per ounce to back all the debt. Revaluing gold higher by a large factor may become necessary in the future to reestablish confidence in currencies. However a revaluation certainly will not be welcomed by central banks, governments, or most individuals. The transition to $80,000 gold, or even $10,000 gold, would be very traumatic.
Where have all the trillions of newly created “money” gone? Into the failed and bankrupt banking scam conducted by the elites. All world-wide monetary policy undertaken by the central banks has been for the sole purpose of protecting the failed banking financial structure, propping up the fiat currencies.