ShanghaiDaily.com/Dan Steinbock/8-8-2016
“In the coming months, the central banks of advanced economies will begin to suffer from monetary exhaustion, possibly starting in Japan where the debt burden is now 250 percent of the GDP. As monetary injections will be seen as necessary but progressively ineffective, investors’ confidence in fiat currencies is likely to decline as they will add their gold purchases – as evidenced by the aftermath of the Brexit referendum.”
MK note: One of the troubling realities driving professional/institutional money into gold and silver is the policy brick wall central banks now find themselves up against. The problem really is not one of ineptitude, but the feeling that the train has gone off the rails and there is little that anyone can do about it (which is even worse). Once understood, the alternatives tend to narrow to a select few and capital preservation becomes the most important issue.
Related: Central Banks – Damaging The World Economy?/ValueWalk
“Gold has consistently revealed its strength when central bankers have proven themselves unable to mobilize the economy. By protecting your savings, and especially your retirement, you’ll sleep better at night realizing you hold an asset negatively correlated to just about everything central bankers have their hands in.”
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