Originally posted by dogstar23
reply to post by PlanetXisHERE
but i've been railing against the $5-10k/oz folks for years now, mainly because they don't understand that debt:GDP matters, while "debt itself"
does not mean much of anything. Growing money supply isn't a concern either as it relates to commodities, but supply commensurate with demand
You're welcome but I'm not sure we're on the same wavelength, but that's okay, maybe you can enlighten me.
Sure, absolutes are rarely useful yardsticks, but also what matters is what tools the "FED" is using to stimulate the economy, and what is working,
what is not, and what is likely not to in the future - and what will happen if the FED has no more tools that work.
For example, in every recession since the depression, low interest rates were the solution that quickly pulled us out and back into growth. However,
that didn't work in the 2008 crash, and monetization/printing money on a scale not seen before was attempted. This worked well in 08-11, albeit with
ZIRP still in effect.
However, monetization seems to be having no effect now, and ZIRP is useless as a driver this time. With most of the world economies in the same boat,
the only course seems to be a race to devalue, as many have observed. Sure China will keep chugging along, but it is not strong enough yet to pull
the rest of the world out of recession/depression.
With demographics the way they are for 3 of the top world economies, Japan, the US and Europe; there are no major demographic economic drivers on the
horizon. The logical conclusions are either massive deflation; or the choice governments and central banks choose 99 times out of 100, monetization
and beggar thy neighbour policies through devaluation. Policy makers inevitably choose the latter, which logically leads to hyperinflation, it is
just a matter of when. When that happens $5K - $10K per ounce gold will look cheap.
Not to mention the public's reaction when they learn Fort Knox is virtually empty.
Physical precious metals never go to zero, whereas many forms of paper - such as currency, stocks, bonds etc have done so time and time again and will
do so again.
However, as I said above, before acquiring some/more physical precious metals (that is ones you can hold in your own possession), I would advise
having all your survival supplies topped up.