We know much is currently wrong with our financial world, as
discussed in the James Rickards book “The Road to Ruin” and elsewhere.
- The official U.S. government debt is nearly $20 trillion. Unfunded
liabilities are 5 – 10 times larger. Debt has doubled every 8 – 9 years
for decades – since the Federal Reserve was put in charge of devaluing
the dollar. Debt will continue to grow, obviously out of control.
- Millions of Americans are out of work, regardless of the official statistics.
- Prices increase, some rapidly, regardless of the official statistics on consumer price inflation.
- More government spending and debt are looming on the horizon. New
and escalating wars are likely. Expect more deficits, debt, and
inflation.
- The U.S. stock market is selling at all-time highs, levitated by “easy money” and unsupported by fundamentals or breadth.
Option A:
Trust the professionals who manage our
digital and paper wealth which is backed only by debt, promises,
fantasy, and confidence in the Federal Reserve and government. Believe
official statistics and mainstream media that tell us things are peachy
and not to worry.
Option B:
Use gold and silver bullion (not the paper stuff)
as financial insurance to protect the buying power of some or most of
our net worth. Based on a century of experience, we can depend upon
central banks and global governments to devalue currencies, create more
debt, and propel gold and silver prices far higher.
Really? Those options seem extreme. Why? Read on!
STOCK MARKETS:
Consider John P. Hussman’s Exhaustion Gaps and the Fear of Missing Out.
Read David Stockman: Market Crash to Occur
“Our country needs a good shutdown in September to fix mess!”
“There will be no bid for the stock once the panic sets in.”
BUBBLES:
- Mike Maloney created an easily understood video which is 35 minutes long and explains the “everything bubble.” Watch it! Stocks, bonds, real estate and more are discussed.
- Bill Holter discusses “The End of the Empire.” (31 minutes) Watch it!
PENSION PLANS:
Constantin Gurdgiev discusses “U.S. Public Pensions System:
“Or, put more cogently, the entire system is insolvent.”
“… in … California, New Jersey,
Illinois, etc. we are already facing draconian levels of taxation, and
falling real incomes of private sector workers.”
“In other words, there is not a snowball’s chance in hell these gaps can be funded from general taxation in the future.”
GOLD AND SILVER:
Read Steve Warrenfeltz: Silver and Gold Pop!
Lior Gantz interviewed Gary Christenson (author) on his book “Buy Gold Save Gold! The $10 K Logic.” This youtube interview (62 minutes)
discusses historical gold prices, on-going dollar devaluations,
consumer price inflation, gold prices rising to $10,000 as the dollar is
devalued, silver, and much more.
CONCLUSIONS:
- It is possible we will enjoy a century of global peace, return to
honest money, eliminate the overhanging debt, balance the budget, and –
insert your favorite fantasy here!
- Otherwise, bet on Option B – buy gold and silver bullion and
store it outside the banking system. Prices will rise substantially as
all fiat currencies are devalued further.
I discuss the ongoing devaluation of the dollar in my book: Buy Gold Save Gold! The $10 K Logic.” It is available at Amazon, or at gechristenson.com in paper and pdf for non-US readers.
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GE Christenson is the owner and writer for the popular and contrarian investment site Deviant Investor and the author of the book, “Gold Value and Gold Prices 1971 - 2021.” He is a retired accountant and business manager with 30 years of experience studying markets, investing, and trading. He writes about investing, gold, silver, the economy, and central banking. His articles are published on Deviant Investor as well as other popular sites.
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The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
