lowtek
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It's not a guarantee by any means, but we are trending in that direction. Government is promising to bail out everybody, which means even more money printing. The more money we print, the less desirable our bonds become for foreign investors, particularly when coupled to the fact that they (foreign governments) are dealing with economic crises of their own.
All of this and it's only the first few months of something that is expected to last 18 months, or more. What will the governments do 6 months from now? A year?
I expect massive printing and all the associated problems that come with it. If not outright hyperinflation, certainly the inflation that has propelled stocks to heights not supported by the fundamentals will creep down into every day goods.
Also, @GIlman check out the situation with silver and gold coins at just about any online dealer. While the spot price is down, demand for precious metals went through the roof. Good luck finding any silver eagles at even $7 over spot. That means the big boys are probably unloading to cover their short positions, while the rest of us hoover it up because we can read the tea leaves.
The next important question to ask:
Who has been buying gold like it's been going out of style, for years? Who has been buying up infrastructure, land, and resources in Africa for the last several years? Who is forcing their people back to work despite the virus (if you believe they don't have any new cases, I got some ocean side property in Idaho for you)? China, of course.
While we're wallowing in the next great depression, they'll be sitting on real money, real industrial production capacity, and real physical resources.
This is precisely the situation at the end of WW2 that lead to the USA being the global reserve currency. Specifically, having the only functional industrial production capacity and a hoard of gold meant that there was no better option.
Could we see China make a play for a gold backed Yuan as the next reserve currency? Quite possibly. They've not hid the fact that they want to be the big dog superpower on the world stage, and this sure would be a golden opportunity.
The final and most important question:
How will Uncle Sam respond? You think we have a stockpile of nukes, aircraft carriers and jets to just sit back and let the empire collapse?
I'm not saying any of this with certainty, but my intuition about the virus was spot on. As soon as I heard about it, and China's response in particular, I knew what was coming. Seeing the way the western governments are responding sure leads me to believe the above scenario is a very real possibility (again, not certain) and I'm starting to take what little steps I can to prepare - at the least mentally.
All of this and it's only the first few months of something that is expected to last 18 months, or more. What will the governments do 6 months from now? A year?
I expect massive printing and all the associated problems that come with it. If not outright hyperinflation, certainly the inflation that has propelled stocks to heights not supported by the fundamentals will creep down into every day goods.
Also, @GIlman check out the situation with silver and gold coins at just about any online dealer. While the spot price is down, demand for precious metals went through the roof. Good luck finding any silver eagles at even $7 over spot. That means the big boys are probably unloading to cover their short positions, while the rest of us hoover it up because we can read the tea leaves.
The next important question to ask:
Who has been buying gold like it's been going out of style, for years? Who has been buying up infrastructure, land, and resources in Africa for the last several years? Who is forcing their people back to work despite the virus (if you believe they don't have any new cases, I got some ocean side property in Idaho for you)? China, of course.
While we're wallowing in the next great depression, they'll be sitting on real money, real industrial production capacity, and real physical resources.
This is precisely the situation at the end of WW2 that lead to the USA being the global reserve currency. Specifically, having the only functional industrial production capacity and a hoard of gold meant that there was no better option.
Could we see China make a play for a gold backed Yuan as the next reserve currency? Quite possibly. They've not hid the fact that they want to be the big dog superpower on the world stage, and this sure would be a golden opportunity.
The final and most important question:
How will Uncle Sam respond? You think we have a stockpile of nukes, aircraft carriers and jets to just sit back and let the empire collapse?
I'm not saying any of this with certainty, but my intuition about the virus was spot on. As soon as I heard about it, and China's response in particular, I knew what was coming. Seeing the way the western governments are responding sure leads me to believe the above scenario is a very real possibility (again, not certain) and I'm starting to take what little steps I can to prepare - at the least mentally.