The Comedian's "Economic Holocaust" ping list...
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
So my y2k stash will pay off big time I got ten lbs of it
Generally a good report, but you need to be mindful of comparisons like:
“”Commodity prices have increased 26% in the last 12 months and 77% in the last 24 months based on the Continuous Commodity Index (CCI).””
It is valid to say CCI went up 26% in 2010.
But the CCI was at a depressed low in 2008 so the 77% increase from that low is not all that meaningful.
Our US government is a mixed bag for the next two years with a GOP House, a 50/50 split Senate, and a Dem President. Under that scenario I do not see any leadership that would solve any of the issues described in this report.
Pingworthy?
thanks for the wrap, this writeup is just like the old days, nobody listened, the banks died, the Fed put them on life support, and all is well! Now the next phase is inevitable, the only question is when.
bookmark
Take a look at the Treasury Bond chart and the graphic “Graphic says interest rates bottomed in 2008 and rising strongly”. Of course after the crash in 2008 there was a sharp rebound but you will notice the trend line is still going downwards not strongly upwards.
I agree we risk hyperinflation in the future based on the failed liberal policies of this administration but I don’t need a gold salesman to convince me. Since the author lied about the bond chart I would be wary of putting too much credence in the rest of the report.
“Egon von Greyerz (EvG) is the Founder and Managing Partner of Matterhorn Asset Management AG. Matterhorn Asset Management AG (Matterhorn) is a Swiss asset management company specialising in wealth preservation with particular emphasis on precious metals.”
(listen closely - you're about to learn a new word)
At that rate, an ounce of gold will be in the neighborhood of 500 petabucks ($500,000,000,000,000,000).
As a number, that's roughly 30,000 times the current US GDP.
For one ounce of gold.
Shelter, the means to protect it, food, and the means to produce and protect it will be absolutely critical to physical survival.
To anyone thinking of investing in precious metals:
PLEASE keep in mind the government still has the seizure laws on the books. And if you think they wouldn’t do it, think again. They have just announced they are regulating all health insurance companies. In other words, taking control.
Goldbug ping.
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Why don’t the prescient folks at “goldswitzerland.com” act on their own intelligence and hoard the gold they have instead of selling it to someone else? In other words, why are they so willing to hand off their future profits to someone else?
There is a problem. The piece does not define hyperinflation and is therefore correct in the prediction. The high, regardless of the actual value will be retro defined as hyper and therefore true.
My view is that the continuing devaluations and resulting price rises will be far less than a hyper rate. That means less than 10-12% per year for six or seven years. Rather than a steep gradient, the inflation will be strung out over a greater time.
I think in terms of the rule of 72. An investment doubles in a time that multiplied by a rate equals 72. Using this equation, at an inflation rate of 12% existing debt will be halved in 6 years. That is, the burden will gradually disappear and cease to be a problem.
The devaluation/inflation is by design and collusion between the various governments/central banks and is the only way to resolve the issue other than total collapse.
If money is properly invested in appreciable hard assets, the outcome will be favorable. If one has no money to invest and relies only on wages, there will not be much pain because wages will rise. The unions will crow about how they have forced wages to increase and folks will feel good. There will be a slight lag, but the principle holds.
Those on fixed incomes and social security will feel a lagging pain but the congress will make adjustments to relieve the pain of the induced price rises.
The problem with real estate will also gradually fade as prices rise back to former relative levels. People with mortgages under water will begin to sense the problem is declining as the inflation floats them upward.
There is however a possibility of serious difficulty to the solution. The continued accumulation of debt and near debt must be radically curtailed. The devaluation/inflation will not be a cure if the debt accumulation becomes chronic. That is why the Republican congress will take hold and put a damper on the debt increase while allowing the devaluation/inflation to continue.