Market Oracle/Peter Ginelli/05-09-17
…I’m convinced we are headed to the same direction in 2017, almost 40 years later, with only one exception.
This time when inflation starts to show its ugly face, and believe me, it will, they won’t be able to fight it by raising rates as they did in the late 70’s and early 80’s! Why? Well, this is where that little exception comes into play. You see, back then, we didn’t have a $20 trillion dollar national debt to pay back with interest, today we do.
Once inflation starts to soar, if the FED tries to raise rates only to 10%, just half of what it was back then, the interest on our national debt will climb to $2 trillion a year, Folks, there is a name for such a scenario, it’s called “Massive debt crisis,” much like today’s Greece debt crisis.
…What do billionaires like Stanley Druckenmiller, David Einhorn, john Paulson, George Soros, Jim Rogers and Paul Singer see today that the rest of the population doesn’t see? After all, between them, they have purchased tens of billions of dollars in precious metals in the recent months. Even president Trump himself who is a billionaire has admitted to owning gold.
PG View: The ideal time to be laying in your hedge is before the inflationary pressures commence.
