Gary Christenson – Gold Prices will rise because …
A) War in Syria, Ukraine, Middle East, South China Sea and other places seems more likely each month. History shows that wars are inflationary, commodities increase in price, and governments finance wars with debt and fiat currency. We want higher gold prices and no war, but the “powers-that-be” will do what is necessary to increase their power and wealth, and if that requires war, then expect more war.
When armies invaded other countries throughout history, were they more interested in confiscating gold or paper currencies? Who wants fiat currency when it is circling the drain on its way toward zero? In troubled times the preferred asset is gold, not devaluing paper currencies issued by insolvent countries and central banks.
B) Central banks will lose control over interest rates and that will pose a huge risk to the global financial system. Expect much higher gold prices as rising interest rates force insolvent governments to more aggressively monetize debt and devalue their currencies.
Unless you believe that central banks can hold interest rates low for decades, regardless of what markets, investors, and individuals believe is appropriate, there is significant risk of rising interest rates.
C) A derivative disaster as a consequence of rising interest rates – is a bomb waiting to explode. The fuse is probably burning at this moment… Continue reading →
Brandon Smith – Last month in the middle of the surreal “Bidenomics” hype I published an article titled ‘Nothing Is Over: Inflation Is About To Come Back With A Vengeance.’ I outlined the misconceptions surrounding CPI and how it is not an accurate model for the effects of inflation.