Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Gain With Oil
By: Chris Mullen, Gold Seeker Report

Gold: A Good News Gravy Train
By: Stewart Thomson

Distractions and Blame
By: Gary Christenson

This Amazing Chart Shows Bitcoin Investors Diversifying Into Gold And Silver
By: Mike Maloney

3 Trends That Could Push Gold Higher in 2018
By: Jeff Clark

You'll Want to Read This Living Legend's Thoughts On Copper
By: Frank Holmes

Government Shutdown Ends – Markets Ignore Looming Debt and Bond Market Threat For Now
By: GoldCore

Asian Metals Market Update: January-23-2018
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold Ends Slightly Higher
By: Chris Mullen, Gold Seeker Report
 
Search

GoldSeek Web

 
Gold or Crushing Paper Debt


 -- Published: Wednesday, 22 October 2014 | Print  | Disqus 

By Gary Christenson

 

A Yahoo headline:  Pentagon Readying For Long War in Iraq, Syria.  More war means more debt and higher inflation.  Increasing national debt is as certain as death and taxes.  Increasing consumer prices follow. 

 

 

 

 

Then the “something for nothing” crowd adds to the trauma.

 

1)    More programs are funded by government – Medicare, disability, military contractors, “war on poverty,” banker bail-outs, “food stamps,” and many more.

2)    Central banks “print” currency (something for nothing) and pretend that new dollars, euros, yen, and pounds are valuable.  The result is more currency in circulation, higher prices, and more economic distortions.

3)     “It’s all good” propaganda from governments and banks disorients the populace.  The antidote is truth.  (Thanks to James Quinn at www.theburningplatform.com)

 

 

Governments respond to problems with more spending (stimulus), central banks support the bond and stock markets (QE), and we pretend debt and deficit spending can increase forever (delusional).  The U.S. official national debt is nearly $18,000,000,000,000.

 

Occasionally a 1987 or 2000 stock market crash occurs, a 9-11 event changes the world as we know it, a housing bubble deflates, and major wars are created. 

 

What could dramatically change our world – again - like 9-11 did?

 

·         Smaller wars expand to become bigger wars, or even global wars.

·         An Ebola pandemic, or merely the fear of a pandemic, temporarily paralyzes the global economy.

·         Loss of confidence in fiat currencies and never-ending debt causes a major depression or financial collapse.  What could create such a loss of confidence?  Insolvent governments, a global pandemic, derivatives implosion, massive bank failures, financial melt-down, crude oil price spike, debts that will never be repaid, and leaders who don’t lead – are just a few.

·         Stocks peak and crash as they often do about every 7 years.

 

 

 

 

Our financial world seems more unstable and more dangerous than usual.  Which has been safer under difficult economic and political conditions during the past 3,000 years - gold or debt based paper?

 

Consider the following graph of gold (log scale) since 1968.  Note the rally into the mid 1970s and the subsequent correction.  Is that pattern similar to the rally into 2011 and the correction since then?

 

 

 

Our financial world is dangerous and volatile.  It is possible that:

 

·         The S&P will rise for another decade.

·         Middle-east wars will resolve into peace and prosperity.

·         The Ebola panic will fade away.

·         Confidence in paper currencies and dodgy debt will persist for another decade or two.

·         Global peace and harmony are just over the horizon.

·         The US gold supposedly at Fort Knox and the NY Fed is still there.

·         Derivatives will continue generating revenue for banks with only positive consequences to economies and the 99%.

·         Governments will expand the funding for the “something for nothing” programs to buy votes, all without consequences.

·         And we will tax and legislate ourselves into wealth and prosperity.

 

But I doubt it!

 

I think gold will survive as a store of value far longer than any government, fiat currency, or debt-based paper investment.

 

Gary Christenson

The Deviant Investor

GEChristenson.com

 


| Digg This Article
 -- Published: Wednesday, 22 October 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.