Deflation looks like it is in the cards. China is the clincher.
I knew something was up when gold dealers on TV started advertizing selling at dealer cost with little or no commission. That told me that the smart money was selling their hoard or at least a lot of it.
I know the story about hyperinflation replacing deflation but when? You better have some cash on the side in the meantime.
Maybe Helicopter Ben will given every home owner 100K in cash if the fhit hits the san this time. Maybe that will help get it going.
All the smart money was in deflation, and is still in deflation. Why do you think Bernanke panicked back in 2009? It was because prices were going down not up, to reflect lowered demand, and that was going to crush Bernanke’s debt positions.
Dropping money out of a helicopter won't fix anything, you have to create money and then spend it INTELLIGENTLY AND PRODUCTIVELY. It's those last two items which are tricky. Also it's best if governments at some level can simply create money rather than borrow it into existence as our government does. At least if a government creates money out of thin air itself we're not sitting here paying interest on it to banks which create it out of thin air.....
Now what do you imagine news like that does to the price of gold?
I knew something was up when gold dealers on TV started advertizing selling at dealer cost with little or no commission. That told me that the smart money was selling their hoard or at least a lot of it.
I don’t know if it is still going on, or even what the details were (minimum purchases?)but I saw some ads a few months ago where dealers were offering $250 cash or so to first time gold buyers.
I am also unsure if MSM covered Soros and Buffet predicting a *gold bubble*, but when I mentioned it to a friend who is heavily invested in physical and miners, she was scathing that the fundamentals didn’t support the term *bubble*. That’s true, but all I could think of was that in a manipulated market, none of the old methods still operate. She eventually agreed.
I mentioned those two predictions to an extreme liberal and she turned absolutely bloodless. I thought at the time that it was interesting that even die-hard supporters of zerO and Co. were hedged with gold.
And yet: still another friend works for an international manufacturer with a lot of infrastructure in China. They are actually all over the world and our friend spends half his time in a plane going to Saudi, Japan, China and a couple of places here in the USA. His employer is doing alright to the point where the employee is putting off retirement as long as possible.
There just may be a lot of denial out there or people are expecting enough government intervention to change the predicted outcome. Or the predictions are overwrought to begin with. I just don’t have enough real information to judge, however, I expect bi-flation and would not be surprised to see price controls at some point.
The worst of all worlds, in other words.