Tag Archives: fiat currencies

Is it OK for gold to go down? Those invested in gold would prefer it doesn’t, but a rational answer must be “Yes.” Trees don’t grow to the sky and few assets monotonically increase in value for lengthy periods. Gold is no different. It has had a remarkable 11-year run but is this run over? Is gold just another bubble?.... Words: 1122

Every fiat currency known to man has failed at one time or another - every one - and ours will be no exception! What factors are contributing to this eventuality and what can be done to protect ourselves from this impending event? [Let me explain and provide you with links to 37 supportive articles to give you a complete picture of what is unfolding and why.] Words: 2700

That governments will want - and will NEED - much, much higher gold and silver prices in the future is counter intuitive, given that they have done everything within their power to throttle back and to keep a lid on bullion prices. Let me explain why. Words: 1300

Since the dawn of this financial crisis, my portfolio has included an allocation to gold. I viewed this as an important element of stability and protection and I believed in a longer-term story taking hold. Last week I kissed the precious metal goodbye for now and this is my explanation as to my reasoning. Words: 1382

It is an old saying that the “road to hell is paved with good intentions”. Well, in recent years, that road has been changed to a super-highway! America was put on that super-highway a few years ago and right now we are traveling at break-neck speed toward the financial abyss. Words: 1132

My old friend, Bob Prechter, is talking about Dow 400. I used to think this was an absurd joke. I no longer think it’s a joke. The ultimate result will be a primary bear market shocking in duration and extent. Words: 524

Given that governments are reluctant to take their lumps now, what are the odds that they will do the right thing — outright default and debt restructuring — three years hence when the debt bubble is that much larger, the economy is in worse shape, and the pain of default and austerity is much higher than today's? The words "slim" and "none" come to mind. The world is firmly ensconced on the path to an inflationary depression. Words: 1119

There is a definite connection between fiat currencies and trade deficits. Critics of the Federal Reserve are right to blame it for distorting trade flows and setting the U.S. economy up for an inflationary crash. However, a trade deficit per se is not a sign of a bad economy. Indeed the trade deficit might blossom if the U.S. ever returned to the gold standard, though it would be due to a productive net inflow of producer goods. Words: 1667

At the beginning of the last decade gold was trading at $255 an ounce and by the end of 2009 was trading at $1,100 an ounce. Not many investors thought that that was remotely possible and, at best, highly unlikely. Now some analysts are saying we should see $5,000 gold in a couple of years. Is that likely or just 'pie in the sky'? Words: 453