jcarter04
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I appreciate Nicole’s perspective. In a just world, unstoppable deflation would occur, wiping out the banking system and their governments. However, there is a strong motivation for politicians to keep their beloved banks and for those who control the banking system to maintain their top dog status. I wouldn’t be surprised to see negative interest rates by the end of 2016 in the U.S. and another version of QE. I believe such actions would put a floor under gold/silver.
Gold and silver have not hit bottom yet as they tend to decline during the hard down phase of the stock market. So, a 50% retracement for gold to $950 and silver beneath $12 could be expected before rebounding. FX markets are what’s going to get the U.S. Once the Euro goes, the U.S. dollar will be close behind. This may not happen until after 2020 but it would behoove one to have PM’s under their direct control. Silver would skyrocket in such a scenario.
I say let deflation ring. At least all the underemployed youth who own no homes or stocks will have cheaper homes, cars, and gas to buy.
High density liquid energy + expansion of debt-based monetary fiat = 100+ year pyramid scheme with silents on top. As paper claims on real wealth get converted to hard assets, the value of those paper claims should fall quite far, perhaps by 2020. Who’s going to buy all those paper claims owned by silents and boomers? The silents did not put themselves on top of the pyramid, it’s just fortunate timing. An involuntary jubilee needs to occur and all social welfare promises for all generations needs to be burned. Otherwise, there will be at least one lost generation sacrificed. Guess what happens to all these magnificent wealth transfer programs when the DOW drops below 7k? In the long run, they’re going away anyway because, mathematically, they have to.
