On the eve of this evening’s US presidential debate and with two weeks to go before the election, we thought it would be fitting to publicly endorse our favorite candidate – the Realist.
The biggest winners thus far that may have resulted from the newly communicated intentions from central banks are not the euro or the broad stock markets, but rather gold and gold-related investments.
There should be very little pretense among objective observers that last week’s perpetual QE announcement could actually provide real economic stimulation.
As the crisis deepens, there is still a window of opportunity for Spaniards to turn to gold as a means to protect their wealth against the risks of increased foreign exchange volatility, forced re-denomination, or even a total currency collapse.
Under a gold standard, the free market determines money supply and interest rates.
The current high prices of precious metals, in the face of possibly deep economic recession, indicate that the prospect of a sudden and catastrophic financial collapse is very real.
Despite all the tricks, both old and new, recession keeps creeping in. They still think the answer is more money.
Policy-administered asset monetization would stop the global financial system from seizing, restore sorely needed economic balance, and reset commercial incentives so that real growth can once again gain traction.
In the first lecture, I described the problem we now face. In the second, I propose a solution (gold bonds).
A critical response by Chairman Bernanke would be welcomed…
We think it is imprudent to advise legitimate savers to invest in levered financial assets.
If we reverse the flow of gold out of the markets, we may be able to prevent a disaster from occurring.